Jan 21, 2022
2 min read
Crypto sell-off pushes Bitcoin below 40K.
After Bitcoin and Ethereum reached all-time highs in November 2021, Bitcoin, XRP and Ethreum have all declined over 40% in value and continue to fall.
The hope that Bitcoin and other cryptocurrencies could bounce back as a hedge against high inflation has failed to materialise.
Rising regulatory threats and concerns around tightening U.S. monetary policy has investors looking for the exits.
The global stock market sell-off and reports that Russia is proposing a ban have also weighed heavily on crypto prices.
In the last 24 hours, Bitcoin has fallen 10%, reaching a low of $37,716.
Since November’s high of 67K, Bitcoin has been stuck in a descending channel, and now that 40K has cracked, this opens the doors for targets of 35k and 30k.
In the last 24 hours, Ethereum has fallen 12%, reaching a low of $2,835.
From the November highs to late December, Ethereum has been a choppy mess. Support circa $3,610 eventually gave way in early January, and the price is now heading towards a double bottom around $2675. If this zone does not hold, I wouldn’t be surprised if Ethereum dropped below $2,300.
In the last 24 hours, XRP has fallen 10%, reaching a low of $0.68.
XRP has been frustrating to watch; price has been stuck in a wide range since last year August.
XRP is currently on course to test the December low of $0.62 with a potential target of $0.50.
Smart money is going to take advantage of the current price action, and they are likely to bag some great bargains.
As always, stay safe out there.
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