bitcoin
Cryptocurrencies and other cryptocurrencies continued to fall on Tuesday amid pressure from a recent congestion in the blockchain network that prompted Binance, the world’s largest cryptocurrency exchange, to pause withdrawals.
Bitcoin fell 1% in the past 24 hours to $27,600, leaving behind the key $30,000 level that the largest digital asset crossed in April for the first time since last June, when the cryptocurrency’s collapse accelerated into a brutal bear market. Bitcoin has struggled to consolidate any gains above $30,000, and has not traded near that psychologically significant area since late last month.
“The world’s largest cryptocurrency exchange has stopped Bitcoin withdrawals twice due to network congestion,” Alex Kuptsikevich, an analyst at brokerage firm FxPro, said. “The technical picture shows a local victory for the bears, as the sharp decline in the price started from the downtrend resistance that had been in place since the middle of last month.”
The latest catalyst driving prices lower is an internal order in the cryptocurrency, and comes after Binance halted withdrawals twice as the exchange cited large fluctuations in network fees amid congestion on the Bitcoin blockchain network. Binance, by far the largest cryptocurrency trading venue, is systemically important to the digital asset ecosystem, and it is not uncommon for operational hiccups in the group to be felt more broadly.
The turmoil created new gaps for bitcoin at a time when the asset was already flirting with downside risk below $30,000 and near other important levels.
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Bitcoin price fell decisively below the 50-day moving average at around $28,600. [on Monday], which we have been referring to as primary/minor support… is likely to confirm the breakdown and give way to a deeper decline, with the next/major support near $25,200,” said Katie Stockton, managing partner at technical research firm Fairlead Strategies. “A breach of the breakout point near $25,200 would be an even bigger setback, as we turn our attention to the 200-day moving average near $22,100.”
More broadly, Bitcoin is likely to continue to respond to, and oscillate with, major macroeconomic forces
Dow Jones Industrial Average
And
Standard & Poor’s 500
Risk assets remain sensitive to changing expectations about future interest rates. While market participants expect the Federal Reserve to make its last rate hike in the current cycle, inflation data will remain closely watched, with the US Consumer Price Index (CPI) for April due on Wednesday.
beyond bitcoin,
ether
– The second largest cryptocurrency – lost 1%, dropping below $1,900. Cryptocurrencies, or smaller cryptocurrencies, were weaker, with
Cardano
Dipping 2% f
ribbed
6% in the red. Memecoins offered more of the same, though
Dogecoin
down 3% and
shiba inu
shedding 2%.
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Write to Jack Denton at [email protected]
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