Bitcoin price was lower after a volatile week, regulatory concerns could damp sentiment in market
Bitcoin price is falling after a volatile week. The sell-off seems to be stabilizing, although many altcoins have been underperforming BTC over the past seven days. At press time, BTC is changing hands at $45,453.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price is rangebound as analysts monitor regulatory developments
The sell-off appears to be stabilizing, although many altcoins have been underperforming bitcoin over the past seven days. Bitcoin price was trading around $45,000 at press time and is down about 9% over the past week. Some analysts expect BTC to consolidate with support nearby at the 200-day moving average, although resistance remains strong around the $50,000.
The global regulatory crackdown on cryptocurrencies is not over yet. As AZCoin News reported, the State Power Company of China announced conducting a check on BTC and other crypto mining facilities.
“The article stated that virtual currencies such as bitcoin waste energy and evade financial supervision, and have no clear legal status in China,” crypto newswire WuBlockchain tweeted.
And last week, the European Securities and Markets Authority published a report stating that crypto assets are highly volatile in price and operate outside of the existing EU (European Union) regulatory framework, which raises investor protection issues.
“Bitcoin’s ratio of positive vs. negative commentary has fallen into FUD mode, following a wave of positivity following the initial 24 hours of Wednesday’s dip. As dip buyers are capitulating, as our data is hinting, this may be the actual dip to buy”, Santiment stated.
Ether, the world’s second-largest cryptocurrency by market capitalization, is holding support above the $3,000 breakout level that was achieved in August. ETH declined from the $4,000 resistance as buyers could not match the all-time price high around $4,360 reached in May. For now, ETH appears to be oversold on short-term charts and will likely consolidate into the weekend.
Terra’s native token, LUNA, jumped almost 40% on the day as significant cryptos tumbled. LUNA is trading at $41.32, a 30% increase in the last 24 hours.
LUNA/USD 4-hour chart | Source: TradingView
Historically, September isn’t kind to the market for both equities and crypto. Since 2011, there were only three times when BTC had a positive return in September. The market has been choppy, but several outperforming outliers, specifically Solana (SOL), continued to rally and record all-time highs day after day – reaching $216 yesterday. Solana’s 11,500% return YTD is nothing but impressive.
Most of today’s altcoin market is red. The top 10 CoinMarketCap has XRP, which recorded the most significant drop of 10% in the past 24 hours, trading at $31.83. The overall cryptocurrency market cap now stands at $2.067 trillion. Bitcoin Dominance is at 41.3%.
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