The BTC/USD coin failed to halt its overnight rally and fell to an intraday low of around $48,000. The Bitcoin price continued to fall from the $52,000 resistance zone, breaking the $48,000 support level and settling below the 100 hourly simple moving average. Bitcoin may continue to lose if it fails to break through the $49,500 resistance level. On the downside, the $48,000 level provides immediate support.
The first substantial support formed at almost the $47,300 mark. A breach below the $47,300 support to the downside, could boost selling pressure. The next destination for the bears might be $46,000. The cause of the downward trend could be attributed to recent reports claiming that the total number of Bitcoin on exchanges has dropped to a new three-year low of 2,408,237 BTC. Meanwhile, the prevalent “risk-off” sentiment in the crypto market also played a major role in undermining the BTC prices. The price of Bitcoin (BTC) jumped higher yesterday, after positive news about the Omicron virus and the protective factor of existing vaccines. Investors rushed into riskier assets like stocks and cryptocurrency on hearing the news. In a strong bull movement, this move drove the BTC price above $50,000. However, the good news appears temporary, as most markets took a breather this morning, giving back earlier gains. The bears have pushed the price of Bbitcoin back below $48,000. This makes the bulls worried because they risk getting stopped if the bears can push the market to the downside.
In contrast, Microstrategy bought more Bitcoins less than two weeks after their previous acquisition. As a result, the company’s treasury has grown by 1,434 coins, increasing the total number of coins held to 122,478. The company’s total Bitcoin holdings were valued at around $6 billion at the time of writing. This good news hasn’t had much of an influence on the BTC prices thus far.
During Friday’s Asian trading session, the Ethereum price was heavily bearish. The daily pattern has been characterized by sustained, steady and constant selling pressure, with no sign of relief in sight. Ethereum is struggling to gain pace against the US Dollar above the $4,200 zone, but it seems to have failed. ETH started a downside correction, and began trading below the $4,200 support zone.
The ETH downside correction may be extended if Ethereum does not begin a new upward trend over $4,250. On the downside, $4,080 is a good place to look for support. The key support is forming near the $4,040 mark. However, the cause of its continued decline could be linked to claims that Ethereum transaction fees reached a new all-time high that month, implying that investors had shifted their attention to other crypto coins, due to the lower transaction fees. Furthermore, the…