As a result of the recent slide across the cryptocurrency space, the value of the entire crypto market fell below $1 trillion
Following a downbeat start to the week, the bitcoin price extended losses to June lows around $17,500 on Wednesday before bouncing back above $19,000 on daily closing. Today, the BTCUSD pair retains a modest bullish bias, but still struggles to regain the $20,000 psychological level that represents the immediate target for the coin in the near term.
The sell-off in the crypto space was amid a drop in stock markets globally and the continued strength of the greenback. The USD index refreshed two-decade highs around 110.80 before retreating below 110.00 amid profit-taking. US stocks finished higher overnight but struggled to extend the bounce on Thursday, with stock index futures falling back into negative territory.
As a result of the recent slide across the cryptocurrency space, the value of the entire crypto market fell below $1 trillion. The latest dynamics of bitcoin confirms that digital currencies continue to trade in correlation to stocks, with bearish bias persisting in both markets these days. As such, should the sell-off on Wall Street reemerge, bitcoin will hardly be able to resist the equity market pressure.
The technical picture shows that a failure to get back above $20,000 could bring renewed selling pressure to the market. Furthermore, the largest cryptocurrency by market capitalization could refresh June lows. If the $17,500 support level is tested, the overall outlook in the market would deteriorate further. Falling below this level could result in a dip towards the $16,000 next.
On the upside, sustained recovery above $20,000 would open the road towards the $20,500 and $21,800 intermediate barriers on the way to the $23,000 mark last seen three weeks ago.