Cryptocurrencies have been making higher lows and higher highs since the beginning of this year, suggesting they are in an uptrend. However, that’s too weak compared to the decline the crypto market has seen since November 2021, so they’re not out of the water yet. Bitcoin approached $32,000 in mid-July but has since declined, falling below $30,000 and finally below $29,000.
Although the flash crash in the crypto market was the worst for buyers as it briefly dropped the price of BTC below $25,000. BTC saw a sharp decline, falling below $26,000 on Thursday. Friday was also a bearish day, but BTC failed to make new lows. This fall in value was attributed to the escalating crisis in the Chinese real estate industry as Evergrande filed for bankruptcy. Additionally, there was a report that suggested aerospace company SpaceX had sold some of its Bitcoin holdings.
Evergrande, a well-known Chinese real estate developer with more than $340 billion in debt, has started the process of filing for bankruptcy protection in the United States. Notably, Evergrande defaulted on its US dollar-denominated debt two years ago.
Trading activity for bitcoin and other cryptocurrencies had declined since July, which appears to have exaggerated the moves as bitcoin traders liquidated about $1 billion worth of positions on Thursday alone. according to Coinglass.
Adding to the prevailing negative sentiment among investors, Binance announced the shutdown of its cryptocurrency payments service, Binance Connect, on Wednesday. Formerly known as “Bifinity,” Binance Connect served as a fiat-to-crypto payment gateway on the exchange, allowing users to buy cryptocurrencies with Mastercard and Visa. Although the 200 SM A (purple) that turned support in June held again last week while the stochastic indicator is oversold, we are considering opening a BTC buy signal here.
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