Bitcoin (BTC) increased its losses at the July 21 Wall Street opening after key resistance levels failed to hold as new support.
Dollar rises to squeeze risky assets
Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD fell to $ 22,340 on Bitstamp after the opening bell, down 8% from the local peak.
The pair’s progress had seen a challenge from Tesla, which revealed that it had sold 75% of its BTC position at a loss. Numerous events then added to the Bitcoin problem in the form of a new strength of the US dollar and an unexpected rise in interest rates from the European Central Bank (ECB) to combat inflation.
At the time of writing, the US dollar (DXY) had returned to 107, a 0.6% increase over the hour as US equities declined.
In Europe, meanwhile, the ECB’s decision failed to improve the euro, which returned early gains as the eurozone struggled with a recent political collapse in Italy.
Good morning about historical #ECB day from Italy where the main interest rate should be 6% and then 6ppt higher than the current interest rate, according to The Taylor rule with the core of Italy #inflation to 3.4% well above the ECB target and unemployment to 8.1% close to NAIRU. ECB interest rates should be 7.4ppt higher for the whole EZ. image.twitter.com/1Nh8yg4e6A
– Holger Zschaepitz (@Schuldensuehner) July 21, 2022
“It’s interesting to see if we get a similar stock breakdown as we did before,” said popular trader Josh Rager tístilooking at the S&P 500 fraction since the end of May.
“This would naturally affect the price action on $ BTC and cryptocurrencies.
The macroeconomic impact had already cost Bitcoin a 200-week and 50-day moving average at the time of writing, both at $ 22,800.
“Sorry for the bulls, BTC lost a 50-day MA and a key 200-week MA,” wrote Chain Research Resources in part of its latest update, adding that the next macroeconomic support level is now just under $ 20,000.
A 50-day MA re-examination confirmed the Trend Precognition signal on the D table. Sorry for the bull, #BTC lost 50 days of MA and the key of 200 weeks of MA. The next technical support level is the green 21-Day MA just above the micro-trend line. image.twitter.com/r5m5HFl15iADVERTISEMENT
– Indexes (@MI_Algos) July 21, 2022
For the popular trader and analyst Crypto Tony, $ 21,700 had now been raised preserve.
By comparing 2022 with the previous bear market, he argued that Bitcoin should still be in line with some upswing before another downturn occurs – a perspective echoed elsewhere this week.
I’ve just gone over the previous bear market while looking at the time and overall look. So far, our shipment has taken 210 days while the biggest reduction has been posted with minimal relief
I think more relief than another drop later this year image.twitter.com/pqjDEgOy1b
– Crypto Tony (@CryptoTony__) July 21, 2022
Altcoins resonate momentum
On altcoins, instability was common as big-eyed symbols faced uncertain headwinds.
Related: Price analysis 7/20: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, MATIC, AVAX
Ether (ETH), previously the best in the top ten cryptocurrencies by market value, fell by up to 9.7% overnight.
At the time of writing, ETH / USD was around the $ 1,500 mark, but Cardano (ADA) and Solana (SOL) also lost 10% in 24 hours.
Commenting on the outlook, Jonah Van Bourg, head of trading at cryptocurrency firm Cumberland, pointed to Ethereum’s evidence as one factor in continuing to remain bullish on the largest altcoin.
“Although the recent price measures have been technical and very macroeconomic, this measure has been a cryptic basis: the Sepolia test network successfully merged to prove its share on July 6 and laid the foundation for the main network in early autumn merging,” one of a series of tweets published the other day read.
The views and opinions expressed herein are those of the authors only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading business involves risk, you should do your own research when making a decision.
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