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Bitcoin (BTC) falls below R289K

As the crypto market continues to sell off, Bitcoin fell to around R284K on Saturday afternoon, its lowest level since December 2020.

Bitcoin’s price is still sliding slowly, and it’s currently testing the R272K to R321K all-time high area from 2017. The decline, however, shows no signs of slowing, and analysts are unsure whether to call it a bottom at this moment.

An hour later, Ethereum followed suit, falling below R16K. These figures were thought to be important support levels for the two most valuable coins in terms of market value.

The following several days could be critical for Bitcoin, as failing to establish support at this level could result in a further market fall…

Failure to establish support at this level in the next few days could lead to a further market slide towards the R240K range.

If the price recovers from its present lows, the R385K level will be the first test before the important R481K resistance level and the 50-day moving average.

The current Crypto Winter differs from the previous one in that cryptocurrencies are sliding with tech stocks as the larger economy becomes more vulnerable, inflation rises, and a full-fledged recession looms.

The price of Bitcoin has dropped by more than 30% in the last week, and the market is arguably at its most nervous. Exchange inflows show that a large volume of coins purchased and kept over the last two years are being transferred to exchanges.

The present dip “reminds me of the 1907 bank panic,” according to Antoni Trenchev, the creator of cryptocurrency lender Nexo, who said on Bloomberg on Friday.

“We are on the path of maximal pain,” Dan Held, Kraken’s director of growth marketing and a Bitcoin influencer, warned on Saturday.

Bitcoin’s drop spanned months and was accelerated in recent weeks by the failure of two major cryptocurrency projects, Terra-Luna and Celsius, which stoked concerns about the market’s long-term viability. The crisis in the cryptocurrency market is exacerbated by macroeconomic reasons such as rising inflation and a series of interest rate hikes by the Federal Reserve.

Market observers have also been keeping a close eye on top-tier cryptocurrencies, which have been falling in tandem with stocks. It doesn’t help that crypto companies are issuing pink slips and laying off a lot of people and that some of the industry’s most well-known brands are having financial difficulties.

Meanwhile, according to recent data from the analytics website Glassnode, Bitcoin miners’ earnings have continued to fall. Miners are now less motivated and profitable due to growing mining costs and a weakening macroeconomic climate.

Bitcoin (BTC) falls below R289K

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at [email protected]

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