Home CryptocurrencyBitcoin Bitcoin price drops below $21k as traders send 84k BTC to exchanges

Bitcoin price drops below $21k as traders send 84k BTC to exchanges

by SuperiorInvest

Bitcoin (BTC) fell further after Wall Street opened on September 13 as the dust settled on unexpectedly high inflation in the United States.

BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView

BTC price eyes 9% daily loss

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD gave up $21,000, down as much as 8.45% on the day.

After the arrival of the US Consumer Price Index (CPI) for August, bearish tendencies appeared 0.2% higher than expected.

This again increased the probability a 75 or 100 basis point increase in key rates next week by the Federal Reserve – something that would put pressure on already creaky risk asset markets.

Chart of Fed rate target probabilities as of September 13, 2022. Source: CME Group

Bitcoin turned out to be particularly sensitive to this event, with the expected support at $20,800 nevertheless dampening the downside.

BTC/USD also managed to clear the last CME futures gap created over the weekend, which was between $21,300 and $21,500.

“BTC just cut the previous swing low I saw yesterday and today,” popular trader Crypto Ed, who forecast both levels confirmed in the post-CPI tweet section.

US stocks faced similar difficulties, with the S&P 500 down 3% and the Nasdaq Composite down 4% at the time of writing.

Jurrien Timmer, director of global macro at asset manager Fidelity Investments, had no reason to believe there would be a risk-asset renaissance until the Fed stopped raising rates altogether.

Stock market inflows hit a 10-week high

Volatility, meanwhile, claimed the most BTC long liquidations for the week, totaling $45 million for September 13 at the time of writing.

Related: The Fed, The Merger And $22,000 BTC – 5 Things You Should Know About Bitcoin This Week

Total long cryptocurrency liquidations were much higher at $168 million, according to data from an on-chain monitoring source Coinglass.

Table of cryptocurrency liquidations. Source: Coinglass

analytics platform CryptoQuant meanwhile, they reported exchange inflows on the day that had already reached their highest since July 1 at 84,000 BTC.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and trading step involves risk, you should do your own research when making a decision.

Source Link

Related Posts

%d bloggers like this: