Bitcoin ends the week with a decline

avatar

изображение.png

Bitcoin ended the week with a decline. The price fell by 10.53% to $ 58,622. The fall started from the $ 66400 level. The buyers suffered the maximum losses at the beginning of the week. The trigger for the sale of cryptocurrencies was the strengthening of the dollar against the background of risk aversion due to the tightening of anti-coronavirus measures and the introduction of lockdowns in Europe.

From a minimum of $ 55,600, the price recovered to $ 60,029. During the correction, buying activity and volumes remained low. On Monday, November 22, in the Asian session, the BTC / USD pair returned to the $ 56,766 level. In all markets, uncertainty remains due to the new wave of the coronavirus COVID-19 in the world. In addition to the coronavirus, the dollar is rising in price on all fronts due to expectations of a rate hike from the US Federal Reserve.

Buyers have to wait for a downward correction in the dollar index, or positive news in the cryptoindustry, which will be able to neutralize the negative external background for risky assets.

The nearest supports are $ 54,550 (from the 1H timeframe) and $ 50700 (from the 1D timeframe). For buyers to return to the market, the price first needs to gain a foothold above $ 61,500. The next condition will be a breakdown of the trend line from $ 69,000.

On Thursday, November 18, at the end of the day, Bitcoin fell by 5.72%, to $ 56891. On Friday in Asia, the price dropped to $ 55,600. The correction continues to deepen. Sellers updated their October low. From an all-time high, the BTC / USD pair fell 19.4%. The drop was about 2% per day. The decline in prices led to a decrease in market capitalization by $ 469 billion, to $ 2.510 trillion.

In a partial lunar eclipse, fear returned to the crypto market. The cryptocurrency index of fear and greed is 34 against 54 a day earlier. The fall is being bought back, but leveraged speculators quickly close longs and open shorts. According to Coinglass, since November 10, longs in the amount of $ 2.5 trillion have been liquidated.

Risk aversion is observed in the foreign exchange market today. The Austrian Chancellor announced the introduction of a national lockdown due to COVID-19. German Health Minister Spahn said the country was in a state of emergency. Vaccinations do not help, restrictions are needed to stop the increase in cases.

Coronavirus news has a strong impact on risky assets. Bitcoin has low sensitivity to them, but high to risky assets. A protracted rally in the dollar will in any case negatively affect the price of bitcoin and other altcoins.

221121c.jpg

BTCUSDt - Day and Hour TF

US President Joe Biden has nominated Fed Chairman Jerome Powell for a second term.

“America needs a stable, independent and effective leadership of the Federal Reserve System,” said the head of state.

For this reason, he will appoint Powell for a second term, and Dr. Lael Brainard will be his deputy, Biden noted on Twitter.

A strange reaction from the crypt, since the US Federal Reserve has been curtailing QE since November, and the market is pricing in an earlier rate hike, since inflation has reached 6.2%.

FOMC members expect inflation to decline in the second quarter, so the cue ball will have time to renew its high in Q1 2022.

Powell emphasized in September that the Fed has no plans to ban cryptocurrencies, but noted the need to include some digital assets in the legal framework. Powell has already decided on the crypt. Apparently because of this, buyers began to buy cryptocurrency.

Posted Using LeoFinance Beta



0
0
0.000
0 comments