BTCUSD stays under pressure, struggling to regain a bullish bias even at the current levels
The price of bitcoin has been losing ground for the fourth consecutive session on Wednesday. Yesterday, the coin briefly derailed the $17,000 mark for the first time in two years to bounce back above $18,000 on a daily close. BTCUSD stays under pressure since then, struggling to regain a bullish bias even at the current levels.
The primary reason behind the most recent decline was the Binance and FTX news amid speculations that FTX’s losses could show a solid deficit. Now, investors fear that BTC and other cryptocurrencies could see an even sharper sell-off if the FTX’s issue is not resolved by Binance’s bid to purchase the exchange.
As such, the plunge broke BTC’s correlation to the stock market where the tech-heavy Nasdaq Composite finished nearly 0.5% higher, with the overall upbeat risk sentiment persisting across the financial markets.
The largest cryptocurrency by market capitalization was last seen trading around $18,400, down less than 1% after a plunge by 10% on Tuesday. The first major resistance now arrives around the $19,000 level. A decisive move above this level and the trend line resistance might bring the $20,000 level back into the market focus. The next significant barrier is near $20,500, above which the price could test the $21,000 region.
On the downside, a failure to regain $19,000 in the near term could lead to another dive under the $17,000 mark. However, as FTX-related worries should abate soon, the market may switch into recovery mode, especially as the coin looks attractive for long-term bulls at the current levels. In the immediate term, a clear break above $18,600 would help ease the downside pressure.