Bitcoin price continues to slide, falling below $42,000. The largest cryptocurrency by market capitalization tumbled to last week’s highs as investors worried about dire macroeconomic conditions, including supply chain issues the pandemic: the ongoing coronavirus, rising inflation, and a slump in the tech market. At press time, Bitcoin is trading at $42,035, down 1.4% on the day.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price slides under $42,000; altcoins fall
Bitcoin price was trading around $41,000 on Wednesday as some traders appeared to be in no hurry to pick a bottom. Analysts see upside potential in the short-term, especially as technical indicators remain in oversold territory for about a month.
Crypto investors tend to seek relative safety in Bitcoin during market stress. Bitcoin’s market capitalization relative to the total crypto market capitalization, or the BTC dominance ratio, is starting to stabilize around 40%. That’s the lowest level since 2018 when altcoins experienced greater price declines than BTC.
Bitcoin continues to hold support above $40,000 as momentum improves on intraday charts. The cryptocurrency has been down about 4% over the past week, although multiple oversold readings suggest buyers could remain active into the Asia trading day.
The Relative Strength Index (RSI) on the four-hour chart approached an oversold level on Tuesday, similar to what occurred on Jan. 5, which preceded a near 10% price bounce a few days later. Still, the upside appears to be limited toward the $43,000-$45,000 resistance zone. And $48,000 could present another hurdle for buyers given the series of lower price highs since November.
On the daily chart, the RSI has remained in oversold/neutral territory for about a month, which is common during a price downtrend.
“With volatility abound, perceptions of various top cap assets are all over the place. Bitcoin traders believe a buy the dip opportunity is near, and Ethereum euphoria is very noticeable. Meanwhile, Cardano and BinanceCoin traders are showing FUD”, Santiment stated.
Source: Santiment
Ether followed a similar path and was slightly down for the day, trading between $3,000 and $3,200 throughout the previous 24 hours. At the time of publication, ether was at 3,124, a 1.7% drop for this period. Most of the significant altcoins spent their day in the red.
The overall cryptocurrency market cap stands at $1.977 trillion, and Bitcoin Dominance is 40.2%.
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Read more:
- Bitcoin Price Rebounded Strongly From $41,000 As Bears Hoping For A Step Into Lower Territory Stayed Disappointed
- Bitcoin Price And Ether Go Down And Then Up; Altcoin Prices Are Mixed