The price of Bitcoin failed to break through the $ 43,500 resistance zone and fell below the $ 42,000 mark before it changed course.
The world’s most valuable cryptocurrency now shows bearish characteristics and remains sensitive to the movement towards $ 40,500, according to several charts.
Bitcoin fell below the level of 42 thousand dollars for the first time since March 22, returning to the range in which it traded this year, due to increased concerns about rising interest rates.
Bitcoin Backpedals for the 6th day in a row
The most popular cryptocurrency fell to $ 41,818 in Asia on Monday morning, going back for the sixth day in a row.
Since the end of March, when it peaked at just over $ 48,000, BTC – and other tokens – have been pulled lower due to concerns about restrictive monetary policy.
The cryptocurrency market traded sideways on Monday. Bitcoin and Ethereum were in decline in the early hours, while altcoins experienced a sharp decline.
Global unrest, which is intensifying as a result of the Russian invasion of Ukraine, combined with economic uncertainty, is pushing markets to a standstill.
Other major risks to the digital sector include rising prices and interest rates.
The rise is waning after the Miami conference
The excitement caused by last week’s Bitcoin 2022 conference in Miami was not enough to stop the trend.
Antoni Trenchev, executive partner of cryptocurrency lender Nexo, said in a statement sent by e-mail:
“Now that the sugar rush associated with Bitcoin in 2022 has passed, the (probably) grim U.S. consumer price report Tuesday serves as a reminder that the central bank is caught between a rock and a hard place when it comes to tackling uncontrolled inflation without imploding the economy.”
BTC total market cap at $785.54 billion on the weekend chart | Source: TradingView.com
Bitcoin spent most of the year trading in the region from approximately $ 35,000 to $ 45,000. Last month’s jump above $ 48,000 briefly reversed token losses from the beginning of the year to date, but BTC has encountered resistance on its 200-day moving average.
Recommended reading What’s next for Bitcoin as prices run into difficulties to recoup $ 43,000?
BTC market capitalization reduced
The global market capitalization of cryptocurrencies has shrunk to $ 1.93 trillion, up 3% in the last 24 hours. However, the total volume of cryptocurrency trading increased by more than 15% to 63.91 billion dollars.
Expectations of tighter monetary policy have affected the demand for riskier assets such as cryptocurrencies and technology stocks, which are increasingly moving in step.
Other popular cryptocurrencies also fell on Monday, with Polkadot down 8.7 percent and Ether down 4.6 percent.
Meanwhile, as Bitcoin grows in maturity and use, its price becomes increasingly linked to the pricing of traditional assets such as stocks.
This growing link implies that any phenomenon that results in lower prices in traditional markets will almost certainly result in a comparable or larger drop in Bitcoin prices.
Featured image from Medium, chart from TradingView.com