Bitcoin price ended its two-day winning streak with heavier selling pressure during late U.S. trading hours
On Wednesday, Bitcoin price and the broader crypto market faced heavier selling pressure in late U.S. trading hours, ending the oldest cryptocurrency’s two-day winning streak. At the time of publication, the largest cryptocurrency by market value is changing hands at $36,917, down 4% in the past 24 hours.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price bounce pauses on low volume
On Wednesday, Bitcoin and the broader crypto market faced heavier selling pressure in late U.S. trading hours, ending the oldest cryptocurrency’s two-day winning streak.
The late afternoon price drop in crypto came after Meta Platforms delivered disappointing Q4 earnings with weak guidance for the current quarter. Meta shares dropped by more than 18% in extended trading on Wednesday.
Bitcoin’s trading volume across major centralized exchanges on Wednesday continued to drop at the time of publication. It failed to sustain a bounce above $38,000, although short-term buyers could remain active above the $35,000 support level. Momentum was starting to fade on intraday charts, which means the pullback could continue into the Asia trading day. At the time of publication, bitcoin was trading at about $37,000.
The Relative Strength Index (RSI) on the daily chart approached overbought territory on Tuesday, which preceded the current pullback in price. Additionally, the 100-period moving average on the four-hour chart, currently at $38,220, continues to cap brief price gains.
Since November, Bitcoin has remained in an intermediate-term downtrend and has consolidated between $35,000 and $38,000 over the past week. Buyers will need to make a decisive move above $40,000 to reverse the downtrend.
Ether, the second-biggest cryptocurrency by market capitalization, was trading at $2,690, off 3.8% for the same period.
“Ethereum has continued ranging in the $2.6k to $2.8k level. The number of unique ETH transacting addresses had remained high, leading to an address activity ratio that wasn’t this high since August, when prices jumped +51% that month”, Santiment stated.
Source: Santiment
Ether suffered more losses than bitcoin during the late trading after a “potential exploit” of more than 120,000 ether (worth more than $326 million in total) was discovered on cross-chain bridge Wormhole. The popular bridge for connecting Solana and a few other major networks is attempting to negotiate on-chain with the hacker.
Most altcoins were also in the red on Wednesday in broader cryptocurrency markets. At press time, some of the day’s biggest losers were tokens associated with the DeFi sector, including Loopring (LRC), Curve (CRV), and Solana (SOL).
The overall cryptocurrency market cap stands at $1.658 trillion, and Bitcoin Dominance is 42.1%.
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