Bitcoin price crash; Crypto market in a freefall

• Yesterday, the price of Bitcoin failed to stabilize above 29,000 dollars.
• Over the weekend and Monday morning, more than $ 200 billion was wiped out of the entire cryptocurrency market.

Bitcoin chart analysis

Yesterday, the price of Bitcoin failed to stabilize above 29,000 dollars. Fear got into bitcoin holders, and the sale started. The price already dropped to 25,000 dollars during the Asian trading session, the bearish trend continued in the European session, and the price dropped to 23,350 dollars. In percentage terms, today’s decline was 11% since the beginning of last night’s trading day. Bitcoin is now looking for potential support to stop this decline, and it increasingly looks like we will soon see BTC at the $ 20,000 level. For the bullish option, we need a new positive consolidation and return of the price above 25,000 dollars, as well as the formation of a potential bottom from which the price recovery would start. Our main bullish target is the $ 29,000-30,000 zone, a place where we can expect better consolidation and future support.

Market overview

Over the weekend and Monday morning, more than $ 200 billion was wiped out of the entire cryptocurrency market. The market capitalization of cryptocurrencies fell below $ 1 trillion on Monday, for the first time since February 2021, according to CoinMarketCap. The crypto market has been on the verge since mid-May, when the so-called algorithmic stabilcoin terraUSD, or UST, and its sister cryptocurrency Luna failed.

The market is now worried about a cryptocurrency company called Celsius, which said on Monday that it was pausing all withdrawals, exchanges and transfers between accounts “due to extreme market conditions”.

However, the sale of the crypto market has damaged Celsius. According to its website, the company had assets worth $ 11.8 billion on May 17, up from $ 26 billion in October last year.

The largest cryptocurrency in the world by market capitalization fell by as much as 12.3%, to the lowest level since December 2020, reports “Bloomberg”.

Other digital tokens have also weakened as sales are on the rise. The MVIS index, which measures the value of 100 leading cryptocurrencies, fell by 9.7%. Analysts say cryptocurrencies are at the forefront of the Federal Reserve’s monetary policy, which should decide this week on a new increase in the reference interest rate in order to cool high inflation. Some even estimate that bitcoin could fall below $ 15,000 and even to a single-digit amount in the thousands of dollars due to the general macro environment and the level of fear that has gripped the market.

Traders are increasingly betting on a more aggressive increase in Federal Reserve interest rates after it was announced last Friday that US inflation reached 8.6% in May compared to the same month in 2021, which is its highest level since December 1981.