The price of bitcoin fell below the psychological level of $20,000

The price of bitcoin fell below the psychological level of $20,000

Bitcoin price dropped below the psychological level of $20,000

The first cryptocurrency failed the $20,000 level. The price drop was sharp and was accompanied by a surge in trading volumes.

Bitcoin price fell below the psychological level of $20,000

Hourly chart BTC/USD. Data: Trading View.

The higher time frame shows that the $20,000 level is the peak of the last bitcoin bull run that ended at the end of 2017.

Bitcoin price dropped below psychological level $20,000

BTC/USD weekly chart. Data: Trading View.

The fall below the high of the previous market cycle occurred for the first time in the history of the first cryptocurrency.

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The price of Ethereum gradually “slids” below the $1000 level:

Bitcoin price dropped below psychological level $20,000

ETH/USD hourly chart. Data: Trading View.

The total capitalization of the cryptocurrency market has fallen to $885 billion, which is comparable to the values โ€‹โ€‹of January 2021. For comparison, in November last year, the figure exceeded $2.9 billion.

Bitcoin price dropped below psychological level $20,000

Data: CoinMarketCap.

Cryptocurrency fear and greed index fell to an all-time low of 6.

Bitcoin price fell below the psychological level of $20,000

Data: alternative.me.

Some market participants attribute this to a combination of reasons, including:

  • the collapse of Terra;
  • problems with Celsius and Three Arrows Capital;
  • unfavorable macroeconomic background.

Bitcoin is trading at around $19,380 at the time of writing. The daily price decline was 6.7%, according to CoinGecko.

Earlier, Mike Novogratz, CEO of Galaxy Digital crypto bank, expressed his belief that Bitcoin will hold above $20,000, and Ethereum will not fail the $1,000 level.

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