Bitcoin price fell as a lack of bullish momentum sparked new lows near $44,000
Bitcoin price traded with significant volatility around $44,000 yesterday as some traders were tricked by a fake news report saying Walmart is partnering with Litecoin (LTC), as AZCoin News reported. BTC has been mostly flat for the past 24 hours after Walmart stated that it “did not know about the press release issued by GlobeNewswire, and it is incorrect.” At the time of writing, BTC is changing hands at $45,245, down 14% in the past seven days.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price traded in a choppy range
Also, on Monday, as AZCoin News mentioned, MicroStrategy announced that it bought an additional 5,050 BTC. The company now holds 114,042 BTC, which were acquired for a total of $3.16 billion and at an average price of $27,713.
Long-term bitcoin holders appeared to be unshaken by the sell-off last week. Blockchain data shows a considerable accumulation of BTC occurred just between the $29,000 and $50,000 price levels. Buyers can either book a profit at current prices or defend support around the bottom of the two-month price range.
The amount of Liquid Bitcoin on-chain has been in structural decline since the March 2020 market crash. This underlines a phase shift in investor appreciation of BTC as a macro asset, with a long time horizon.
According to crypto analyst Michaël van de Poppe, the bullish crossover of the two averages (golden cross) was still on the cards. There was, however, no guarantee that bullish behavior would result from the event taking place.
“I think we’re going to have a top of this cycle… next year, in April–May,” he forecast, giving a new, further-reaching timetable for BTC to see its cycle top.
In the meantime, $44,000 and $47,000 form the support and resistance levels to watch for a continuation up and down.
Also, trader and analyst Rekt Capital is forming the lower boundary of a demand area among buyers, said that $44,000 was equally important.
“The recent BTC Weekly Close wasn’t technically bad as it occurred above the orange demand area. However, BTC is now dipping deeper into the demand area. That said, this demand area still hasn’t been lost. As long as the demand area holds, BTC won’t see $40K”, he tweeted.
Source: Rekt Capital/Twitter
Major cryptos extend losses today. Following a string of news which includes Coinbase’s announcement of their private $1.5 billion debt offering, a new partnership between SkyBridge Capital and NAX, and more, BTC fell 3% on the day. The leading crypto market value has shed 14% in the past seven days, its most significant single-week drop since May.
Ethereum fell 5% as well. Its price has been volatile of late. Despite this, we’re seeing that the notable Github submission activity for the second market cap asset has grown back to May rates. It’s encouraging to see that the ETH team continues to innovate and improve.
False rumors of Walmart offering customers the option to pay in LTC emerged yesterday. Following the fake press announcement, the crypto spiked 30% to $234.85. After the retail giant quickly dispelled the rumors, LTC tumbled back to $178, as of press time.
Solana’s native token (SOL) took a dive, falling almost 8% to $163.88. In recent weeks, the altcoin has hit all-time highs of $191.68 with the surge in NFT sales. SOL is often used to mint various NFTs such as the Degenerate Ape Academy collection.
BTC failure to make a strong recovery in the past few days has resulted in profit-booking in most major altcoins, threatening to pull the total crypto market capitalization back below $2 trillion. But now the overall cryptocurrency market cap now stands at $2.058 trillion. Bitcoin Dominance is at 41.3%.
- MicroStrategy Purchased A Further 5,050 Bitcoin, Taking Its Total Holdings To 114,042 BTC
- Long-Term Investors Are Keeping Their Hands Strong During The Recent Decline In Bitcoin Price