Bitcoin price declined toward a three-week low around $56,000 before stabilizing near $58,000
The crypto market looks weaker as Bitcoin price drops below $60,000 and ETH loses ground above $4,000. Buyers can defend the immediate support of around $56,000 during the Asian trading hours, although there is stiff resistance on the chart in the short term. At the time of writing, BTC is changing hands at $57,335.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price drops below $60,000 amid widespread sell-off in crypto markets
Bitcoin price topped off its worst weekly performance since May when the price of the largest cryptocurrency by market value fell below $60,000.
The price is trading at $57,335 at press time, down 11.6% since Sunday night, and comes amid a widespread sell-off in the crypto market. It was difficult for traders to give a specific reason for the most recent drop but admitted that the market suddenly looked weaker than last week when the price surged to an all-time high near $69,000.
If the decline continues to be made, the following price support will be around $53,000, after which a retracement could be stabilized. The 100-day moving average, currently approximately $53,000, could attract the same buyers as it did in late September before the price recovered. Now, the intraday chart appears oversold. This means that buyers can defend the immediate support around $56,000, albeit briefly presenting stiff resistance on the chart.
Their continual probing of lower levels has so far failed to prove successful, but one close below $58,850 will increase their confidence, and prices will move down to $56,670.
Bitcoin’s price drop comes amid a widespread crypto market sell-off. Ether (ETH) dropped below $4,000 for the first time since late October.
However, in another development, the ETH hash rate keeps renewing all-time high. After EIP-1559, the miner revenue structure changed; most of the revenue comes from block rewards, not transaction fees. Miner tips and block rewards in ETH value are decreasing, but total revenue in USD increases as the price increases.
Source: CryptoQuant
The Sandbox (SAND) rallied 85% since Tuesday to a new record high above $4.20. Earlier this week, the platform announced its highly anticipated play-to-earn metaverse event. Other gaming tokens, including DVI and YGG, have also rallied. Most digital assets in the market ended the day lower.
The overall crypto market capitalization stands at $2.506 trillion, and Bitcoin Dominance is at 43.1%.
Read more:
- No Need To Fret About Bitcoin Price Drop Below $60,000, But Be Careful If It Drop Below $50,000
- Bitcoin Price Was Stabilizing Around The $60,000 Support Level After Declining About 15% From An ATH