• Bitcoin (BTC) is trading below $20,000 for the first time since mid-January.
• The crypto market has dropped this week and BTC’s significant support and resistance level at $18,000 is yet to be broken.
• Recent negativity surrounding crypto such as Silvergate and SVB issues are possible reasons for the price plunge.
Bitcoin Breaks Down Below $20k
Bitcoin (BTC) has been struggling with recovery for some time and recently dropped below $20,000 at $19,650. This is the first time BTC has fallen below this crucial line since mid-January. The 24-hour charts indicate that BTC has been trading in the red zone for 24 hours and its 7-day chart paints a similar picture of continuous price declines.
Market Pressure
The market charts show that BTC’s most significant price plunges occurred between March 9 and 10 when it dropped from $21.7k to $19.9k in less than a day. Crypto assets have all been trading in the red this week according to technical analysis which depicts strong sell that may run up to the next support level of 18K should it break down further. The Moving Average Convergence/Divergence (MACD) indicator shows a sell bias, while the relative Strength Index (RSI) for BTC/USD daily is at 26.94 levels.
Possible Reasons
Recent negativity surrounding crypto could be reason for the current price plunge such as implosion of a crypto-favored bank Silvergate and inflationary pressure as well as general sentiment from key personnel in the regulatory space building fear in crypto investors with Fed chair Jerome Powell mentioning possibility of raising interest rates higher and Bank of America CEO predicting US could suffer minor recession with interest rates remaining high until 2024.