Bitcoin (BTC), the largest cryptocurrency by market cap, dropped even further and breached the $16,000 mark on November 21st. It might continue in the volatile market as investors are starting to lose faith.
BTC dropped to a daily low of $15,480 yesterday, its lowest level since November 2020, where bulls rushed to consolidate their positions and raise back, where it is currently trading at $16,049.60.
According to the data from CoinMarketcap, the token is currently displaying losses in both daily and weekly charts. But the 24 hours trading volume is up about 9% to $28.466 billion.
Additionally, the global cryptocurrency market cap is trading sharply lower, around $795.94 billion, with a decrease of about 2% in the last 24 hours. While the 24 hours trading volume increased by almost 18% to $198.83 billion.
Near $16,000, Bitcoin is receiving rapid technical assistance, and candles above this level suggest that a bullish reversal is possible. Due to this fact, it can be speculated that the upwards trend will continue until it reaches resistance levels of $16,500 and 17,180 due to increased buying pressure.
Factors Dragging Bitcoin (BTC) Down
The continued effects of the collapse of FTX continue to ripple across the market, leaving very few tokens untouched as the cryptocurrency market fell even further into the “Crypto Winter.”
The creator of Cubics Analytics, Caleb Franzen, also commented on the bounce in the price of Bitcoin after it struck a daily low. He noted that he had been foreseeing the prospect of new lows.
However, considering the current state of affairs, investors find it difficult to adapt to both new highs and new lows. As much as Bitcoin tries to tackle its issues, such as security measures, people still remain skeptical.
Bitcoin is still struggling to keep up with the demand, and while there are multiple reasons behind it, one theory, in particular, has stood out. According to Santiment, this may have been caused by FUD- Fear, Uncertainty, Doubt- which happened when traders lost faith in centralized trading platforms after the FTX debacle.
Since the FTX cryptocurrency has been collapsing since November, contagion fears have destroyed more than $200 billion worth of crypto-currency. It is mainly because most investors are liquidating their futures positions to make sure that they can withdraw the remaining funds and leverage all of their portfolios.
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