Volatility Rises as Bitcoin Pulls Back to Support at $19,200

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(Kitco News) – Volatility is rising across the cryptocurrency market as investors seem unsure of what to do after the release of yesterday’s higher-than-expected Consumer Price Index (CPI), which it led to a bomb and then a general dump in finances. markets worldwide.

Shortly after the CPI was released on Thursday, stock prices began trending higher and cryptocurrencies were soon to follow, but the positive momentum was reversed on Friday when the reality of the worsening state of the global economy led to investors to opt for a more conservative investment strategy.

Data from TradingView shows that the price of Bitcoin (BTC) saw a 10% intraday swing, ranging from a low of $18,130 near noon Thursday to a high of $19,958 in early trading Friday, and has since pulled back to support near $19,200, which is located almost exactly at the midpoint of its one-month trading range.

BTC/USD 4-hour chart. Source: TradingView

Kitco Chief Technical Analyst Jim Wyckoff noted the “robust rally after hitting a four-week low on Thursday” in his BTC morning update, while offering a warning that it was not out of the woods yet.

“The bears still have a slight overall short-term technical advantage,” Wyckoff warned, noting that “the bulls now have some momentum on their side to suggest more choppy and sideways trading at lower price levels in the near term.”

A similar perspective on near-term sideways price action was offered by Rekt Capital, who provided the chart below and noted that “BTC still remains below old macro green low range support of ~$20000.”

BTC/USD 1-month chart. Source: Rekt Capital via Twitter

“Technically speaking, unless BTC can reclaim the green as support and thus the $19,800-$23,300 range, price is set for a bearish continuation,” Rekt Capital said.

From a historical perspective, there is no guarantee that BTC will experience a noticeable decline from this point, and since it is currently trading near its 300-week moving average (MA), past behavior shows that this is “One of the best places to invest. the asset,” according to Michaël van de Poppe, CEO and founder of Eight Global.

There is no place for investors to hide

There were few places to hide from the market carnage on Friday, as financial markets around the world fell as the US dollar again trended higher.

At the close of the markets, the S&P, the Dow Jones and the Nasdaq registered losses on the day, with decreases of 2.37%, 1.34% and 3.08%, respectively.

Altcoins, likewise, offered little protection against losses as the vast majority of tokens mirrored the behavior of Bitcoin and fell throughout the day.

Cryptocurrency market daily performance. Source: Coin360

Several decentralized finance tokens managed to buck the trend posting double-digit gains on the day, including MDEX (MDX), which is up 87.5%, a 12.9% gain for SushiSwap, and an 11.56% gain for Just (JST).

The total cryptocurrency market capitalization is now $920 billion, and Bitcoin’s dominance rate is 40%.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has gone to great lengths to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage arising from the use of this publication.

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