The price of bitcoin is currently hovering above $24,000, up more than 4% on the day as markets embraced the latest measures taken by the U.S. central bank to combat inflation and signs that the economy is weakening but not yet entering a recession.
Despite GDP falling more sharply than anticipated, the leading cryptocurrency by market capitalization briefly crossed the $24,000 barrier for the first time in more than a week.
For the first time since early June, Ether, the second-largest cryptocurrency by market valuation after bitcoin, surpassed $1,700. Other significant cryptocurrencies were also strongly up, with ETC and BCH both rising by more than 20% at one point.
As a result, daily traders lose on bets that the value of crypto assets will decline amount up to $400 million. Over 90,000 traders have lost everything, and the single-largest liquidation order on Huobi involved the ETH-USD trading pair, worth over $2 million.
Risk-taking is surging as the US economy shrank for a second straight quarter, increasing the likelihood that the Fed will look to tighten at a slower pace at its next policy meeting in September.
Outlook
- This instance appears to be the same, with Bitcoin experiencing a bullish rejection in June and then recovering by about 17% a month later. Notably, BTC’s price encounters temporary resistance around roughly $23,150 in its 50-day EMA (the red wave), with a breakout clearing its way.
- Even at $27K the price would be a lower high than the prior regional highs. Technically speaking, that increases the likelihood of another bearish continuation move.
- It’s interesting to note that volume activity during the current Bitcoin drop indicates a stronger desire to sell the coin at regional peaks.
- This is demonstrated in the daily chart below by emphasizing the volume readings during uptrends and downtrends from November 2021. For instance, the most recent two significant price drops in May and June were accompanied by a strong rise in selling volumes.
