Tuesday, February 27, 2024

Market Watch Jan 19: Bitcoin Dips By 2% After US Govt Cracks Down on Bitzlato.

The crypto market is down today following five days of highs and significant gains. A bearish persistence could lead to a steeper decline.

Bitcoin is currently trading at $20,837 after losing 2.17% in the last 24 hours. Ether, the second-most popular cryptocurrency, down by 3.38% was changing hands at $1,530. BTC price gained 14.39% in the past seven days, and Ether gained 9.18%. The altcoins are splashed in red. Shiba Inu is the biggest loser. The meme coin lost 10% in the last 24 hours. Avalanche AVAX is down by 7.42%, Solana lost 6.40%, Dogecoin 6%, Polygon MATIC 5.82%, Uniswap lost 5.26%, Litecoin by 4.71%, and Polkadot 4.33%.

The Relative Strength Index shows the rally was in overbought conditions. But now, the indicator is re-routing south to test previous resistance zones for potential support. For Bitcoin, the areas of interest are $18,250 and $17,000. If Bitcoin sees an uptrend, it could make a run for the $21,550 mark resistance level and invalidate the bearish scenario. The bulls are likely to challenge September’s high of $22,799, meaning a 10% increase from Bitcoin’s current market value.

The current dip in the crypto market comes after the US Department of Justice shut down Bitzlato, a Russian exchange. This follows the DOJ’s warning that strong action would be taken against the crypto sector. Crypto experts say lack of clarity on regulation continues to weigh down heavily on growth and innovation within the sector. Analysts highlighted that mainstreaming of cryptocurrencies cannot happen until a more universally agreed upon and understood set of laws is enacted. As such, the Commodity Futures Trading Commission (CFTC) called for clearer regulation.

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Azeem
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