Yesterday’s bitcoin (BTC) price appreciation was ultimately short-lived. Bitcoin did not go much further than $20,300 before the price plunged again. Initially, bitcoin found support around $19,000, but the price fell through this morning as well. Bitcoin then tapped the low from $18,500 and is rising to $18,740 on Binance and $19,610 on Bitvavo at the time of writing.
The market giveth, and the market taketh. #Bitcoin $BTC pic.twitter.com/5cqzYBOF5K
— Jan Wustenfeld (@JanWues) September 27, 2022
This means that the bitcoin price is down 7.2% today. The trading volume increased by 9.8% in the past 24 hours. The total market capitalization stands at $360 billion and the dominance at 39.3%. The Fear & Greed Index comes in at 20 (Extreme Fear). Talk about it in our Discord surroundings!
Bitcoin Fear and Greed Index is 20 – Extreme Fear
Current price: $19,063 pic.twitter.com/xBL6OgIIzB— Bitcoin Fear and Greed Index (@BitcoinFear) September 27, 2022
Macro very bearish for bitcoin
Although many analysts had expected bitcoin to rise to $21,000 or higher before falling again, the $20,300 proved to be too much resistance. Then stock markets started to fall again and possibly bitcoin followed.
Many analysts are again quite bearish and expect new ones lows the coming time. That could be as deep as $16,000, although $12,000 is already feared. However, bitcoin must first fall through $ 18,500, which has held up strongly in recent times. Then there may be a test of the annual low at $17,600.
Not bullish price structure for #Bitcoin pic.twitter.com/3qZ4B16bql
— Caleb Franzen (@CalebFranzen) September 28, 2022
The price decline was again accompanied by a falling S&P 500 and a rising US dollar index (DXY). The DXY continues to rise, due to the bad macroeconomic situation investors prefer to hold on to their dollars. Historically, the S&P 500, to which bitcoin is highly correlated, could fall a lot deeper than its current low in a bear market.
The bear market rally we saw off of the June low was a big one (+17% on closing basis) but certainly not unprecedent. Longer bears like 2007-09 and 2000-02 both had 20% snapback rallies where it looked like the worst was over, only to be followed by lower lows. $SPX pic.twitter.com/SV0OmkbKfh
— Charlie Bilello (@charliebilello) September 27, 2022
Bitcoin sees increasing demand and increasing volume
However, there are also positive signs. CryptoQuant analyst Phi Deltalytics reports that stablecoin deposits on exchanges are on the rise, and that increase is not reflected in stablecoin withdrawals. That could be a sign of increasing demand and investors getting ready to get back in.
Increasing Spot Demands
“Currently, there’s a significant increase in stablecoin deposits and not much of an increase in stablecoin withdraws.”
by @phi_deltalyticsRead More👇https://t.co/kDxK92eZaV
— CryptoQuant.com (@cryptoquant_com) September 28, 2022
Yesterday there was also a strong increase in trading volume. This may have been due to the declining British pound, reports CoinShares’ James Butterfill. When a fiat currency is threatened, investors prefer bitcoin, the researcher says.
Here is a bit more colour, volumes performance of #Bitcoin vs key FIAT pic.twitter.com/PRq1Y2vemm
— James Butterfill (@jbutterfill) September 27, 2022
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