Bitcoin drops 10%, will price hold now or will we see new lows soon?

0
Bitcoin koers keldert hard door hoge angst, meer volatiliteit opkomst

Bitcoin (BTC) made another significant plunge yesterday. We already warned that the release of US inflation data could cause significant volatility, especially if they come in higher than expected. That was also the case, the consumer price index (CPI) comes in at 8.3%, while 8.1% was expected. This raises fears that the Federal Reserve will raise interest rates sharply again. We will hear that on September 21.

Immediately after the CPI publication, the bitcoin price dropped from $22,650 to a low of $20,050, but even briefly fell below $20,000 on some exchanges. There, bitcoin found support and recovered slightly overnight. The BTC price is at $20,260 at the time of writing on KuCoin and €20,300 on Bitvavo.

This means that the BTC price is today no less than 9.6% in the minus. The trading volume increased by 8.9% in the past 24 hours. Total market capitalization is $389 billion and dominance at $39.0%. The Fear & Greed Index comes in at 27:

Bitcoin news from yesterday

Will bitcoin hold up or will we see new lows?

Yesterday, our analysts described that bitcoin may be on the brink of a trend reversal as the price approached 0.618 Fibonacci. That indeed turned out to be the top and after CPI the decline started. Again, the level where BTC has to hold is the 0.618 Fibonacci. It is at 61.8% of the previous gain and comes in around USD 20,165.

For the time being, the price manages to hold up above, but if bitcoin falls through this, there is a good chance that we will have new lows will see below $18,500. There is also no bullish divergence in the relative strength index (RSI), which may indicate that the decline is too strong. If you have any questions about this analysis, feel free to ask them in our Discord surroundings.

Bitcoin price analysis September 13 (Tradingview)
Bitcoin price analysis September 13 (Tradingview)

Bitcoin hash rate and mining difficulty set new records

The Bitcoin hash rate and mining difficulty are important indicators that often go hand in hand. The hash rate is a good indicator of network security and represents the computing power miners provide. The mining difficulty indicates the level of difficulty for solving the complex cryptographic puzzles to process transactions.

The chart below shows that the hash rate has reached a new all-time high last week, despite the poor price development. As a result, the difficulty level also rose to a new record last night. According to BTC.com was an increase of 3.45% at an average hash rate of 229.39 EH/s to a record of 32.05 T. That is a sign that the security of the network is in good shape, but also that miners are still further come under pressure, partly due to the falling price.

Bitcoin hash rate (Glassnode)
Bitcoin hash rate (Glassnode)

Trade with Crypto Insiders

Are you looking for help with trading? Do you have questions and do you want to receive technical analyzes immediately? Join and try a Premium Membership free for 30 days. Here our analysts share their market knowledge and the latest analysis 24/7. Here you can also directly connect with various market experts and crypto enthusiasts who are ready to help you!

Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts’ own insights and experiences and are for educational purposes only.

LEAVE A REPLY

Please enter your comment!
Please enter your name here