Bitcoin falls below $20,000 on Sunday

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Bitcoin falls below $20,000 on Sunday
Bitcoin falls below $20,000 on Sunday

The $20,000 level acted as support for Bitcoin when it hit lows in recent months, but the crypto currency had worked its way higher in recent weeks. Since 14 July, it hadn’t been below $20,000 before Saturday, and had even crossed above $25,000 earlier in August

As part of a wider crypto currency-market retreat, Bitcoin fell below $20,000 on Sunday, amid concern about the Federal Reserve’s rate-hike path.

The largest token was trading at 19,999 at 22.30 IST Sunday. That’s after a two-day drop of 7.6%, moving in tandem with US stocks on Friday after Fed Chair Jerome Powell’s speech at the Jackson Hole conference. The wider crypto market retreated Sunday, with the MVIS CryptoCompare Digital Assets 100 Index dropping 1% in its fourth straight day of declines.

“Money is flowing out of risky assets. Crypto followed the sharp adjustment of the US stock market,” after Powell’s remarks, said Cici Lu, CEO at Venn Link Partners. “Markets didn’t like what he had to say and Bitcoin is resuming as a high-beta asset.”

The $20,000 level acted as support for Bitcoin when it hit lows in recent months, but the crypto currency had worked its way higher in recent weeks. Since 14 July, it hadn’t been below $20,000 before Saturday, and had even crossed above $25,000 earlier in August.

Though levels of support could lie lower as well, numerous strategies have flagged $20,000 as a key point for Bitcoin.

Fairlead Strategies’ Katie Stockton sees long-term support in the $18,300 to $19,500 area. Fundstrat strategist Mark Newton has flagged some key areas in the $19,000 range, with a “real area of importance” around $17,500, near the June lows and which would allow for a 100 per cent alternative wave projection of the most recent decline from mid-August, he said in a note on Friday.

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