Bitcoin widens losses, deepening December’s decline with the world’s most popular and largest cryptocurrency Trading by market capitalization declined 5% to $47,912, falling below the $50,000 mark on Tuesday. Bitcoin, known for its volatility, has fallen by more than $21,000 since setting a record in early November, and is up nearly 64% (y-to-date or YTD) in 2021.
“Bitcoin is showing signs of a trend reversal and broke out of the trendline. It is retesting support near $47k. Bitcoin charts are forming higher and higher lows on the 4-hour time frame, although showing an uptrend. The $45k level needs to be defended to continue. “Immediate support and resistance is expected near $47.5k and $52k,” said Siddharth Menon, COO of WazirX.
Meanwhile, Ether, the coin tied to the Ethereum blockchain and the second largest cryptocurrency, fell more than 5% to $3,820. On the other hand, the price of Dogecoin also fell by almost 5% to $0.14, while the Shiba Inu also fell by 6% to $0.0000035.
Other digital tokens such as Solana, Polygon, Litecoin, Terra, XRP, Polkadot, Stellar were also trading with cuts in the last 24 hours. According to CoinGecko, the global crypto market capitalization took a knock of nearly 6% to $2.37 trillion, due to the decline in coins.
Cryptocurrency prices went on another roller coaster last year: rising, falling and then cycling. El Salvador this year became the first country to make bitcoin legal tender, while the first exchange-traded fund tied to bitcoin futures also began trading.
Bitcoin, the most popular digital token, has fallen nearly 30% over the past five weeks after setting a record high of around $69,000 in early November. News that central banks around the world are considering tougher monetary policy has affected risk appetite in the past few weeks.
(with inputs from agencies)
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