Bitcoin was recently trading at just above the crucial $20,000 mark having lost 1.58% of its value in the last 24 hours. The popular cryptocurrency gained 3.20% in the past seven days. Ether, the second-most popular cryptocurrency, is trading at $1,356. It’s down by 1.27% in the last 24 hours and gained 2.10% in the past seven days.
The overall crypto market is flashing in red with meme coins Shiba Inu and Dogecoin being the biggest losers. Shiba Inu lost 2.78% of its value in the last 24 hours, and Dogecoin 2.38%. Among the altcoins, Avalanche (AVAX) is down by 2.35%, Polkadot by 2.02%, Solana by 1.99%, and Cardano 1.63%.
Macroeconomics has been at play for much of 2022 preventing the crypto market from recording gains and growth. BTC’s price action may seem slow but it is moving northward. Traders are trying to hold on to the momentum that started on Monday. However, the upward streak was cut short on Wednesday. This was followed by a fiery, brief recovery that did not prove strong enough to turn the red candle into a green one. This highlights the imbalance in the price action as buyers and sellers try to preposition for the next leg up in the last quarter of the year. It turns bullish and bearish, time and again.
Experts acknowledge that Bitcoin price action is at risk of becoming unstable. Bears and bulls are trying to steer the direction of the trend. It should be noted that there has been no real change in the current tail risks which heralds more downside, while on the other side, a lot has been priced in. Any relief should be sufficient for a substantial leg higher in BTC price action.
Currently, Bitcoin is seeing rejection from the 55-day SMA at $20,444. There is the risk of the price tanking as bears build up large chunks of short positions.