After briefly touching the $20,000 mark, Bitcoin and other cryptocurrencies fell like a pack of cards. Now the crypto market is lighted up in red as most of the cryptocurrencies lost whatever gains they had made.
Bitcoin is trading at $18,738, as per data from CoinMarketCap. It lost 7% of its value in the last 24 hours. Ethereum, also down by 7%, is changing hands at $1,286. The world’s second-most popular cryptocurrency slipped off the crucial $1,300 mark. Among the altcoins, Ripple’s XRP is the biggest loser. Its price is down by 11% in the last 24 hours. Polkadot is down by 7.37%, Solana lost 7.18% of its value, Cardano 6.43%, and Polygon MATIC 6.22%.
The rise and fall of the crypto market came as investors may have tried to anticipate the historically bullish October by adding to their holdings. Two strong economic indicators may have buoyed their spirits. Analysts believe investors backed off because of inflation and recession fears that have plagued the asset markets for most of 2022.
Edward Moya, Oanda Senior Market Analyst, described Bitcoin’s Tuesday hike to $20,000 as impressive. But he was less than sanguine about any significant price increases in the near future. Moya highlighted that Bitcoin doesn’t have a catalyst to extend much higher, all in all, stabilization is a welcome sign for long-term bulls.
Meanwhile, sellers are dominating Bitcoin’s movement with the $19,000 price zone being a high-demand zone. It would prove difficult for the bulls to climb back to the $20,000 mark. If Bitcoin moves toward $20,000 in the day, an immediate resistance awaits near the $19,000 level. BTC price is likely to go to $19,500 and more gains would push it higher towards $20,000. Indicators remain bearish.