Bitcoin Price Drops to $47,629; Ether, Solana Drops

Bitcoin has fallen below $50,000, a level that some analysts believe is critical in determining the future of the world’s largest cryptocurrency in the year 2022.

At 8:40 a.m. in New York, the token had fallen 4.5 percent, trading at around $49,300. The Bloomberg Galaxy Crypto Index and ether, the second-largest cryptocurrency, were both down over 3%. Smaller tokens like Solana, Cardano, Polkadot, and meme token Dogecoin all lost value on Tuesday, according to CoinGecko.

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Bitcoin Imvestors Shied Away

Investors have recently avoided speculative segments of global financial markets, fearing the end of central bank stimulus will cause problems. Experts disagree on how much Bitcoin and the wider crypto universe are exposed to this risk.

There isn’t “anything alarming in the Bitcoin market right now? Vijay Ayyar, vice president of corporate development and international at Luno, agreed. He added that the outlook for the virtual coin is “bullish.”” If the $48,000-$49,000 range holds.

Since the start of the year, bitcoin has largely tracked riskier assets like US stocks, but that trend appears to be breaking this month. The S&P 500 index of the world’s largest companies rose about 5% in the first two weeks of December, while Bitcoin fell over 10%. This is the first time since June that their performances have been significantly different.

Bitcoin has largely moved in tandem with riskier assets like U.S. stocks this year. (REUTERS)

Decline from an all-time high

Technical studies suggest Bitcoin has reached a tipping point after a November high of nearly $69,000. As a result, the cryptocurrency’s year-to-date reduced to approximately 70%.

Consider the results of a study using Bollinger bands — a popular method of analyzing volatility — which revealed that while the virtual coin had reached the upper band in the previous week, it had failed to close above it. Some believe that this indicates that Bitcoin will have difficulty making gains in the short term.

Moreover, the next level of support for Bitcoin, according to Katie Stockton, the founder and managing partner of Fairlead Strategies, an independent research firm that specializes in technical analysis, is around $44,200, which corresponds to the 50% Fibonacci retracement level.

According to her, the $50,000 threshold isn’t as significant as it appears, “but it does have psychological significance.” “” she explained. In a consolidation phase, Bitcoin appears to be reacting to the short-term overbought condition, according to the market.”

Bitcoin falls below $50,000, continuing a choppy, down December (livemint.com)

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