- Bitcoin spent time below $20,000 for a ninth consecutive day and dropped as much as 0.8% to $19,590 on Sunday, a session in which it failed to crack above that round-number level.
- Bitcoin has traded largely in the same direction as other risk assets like the Nasdaq 100 as the Fed boosts interest rates amid stubborn inflation.
After a solid unemployment report offered mixed implications for the U.S. Federal Reserve as it contemplates its path on interest rates, Bitcoin, the largest cryptocurrency by market cap, trended downward through the weekend.
Bitcoin spent time below $20,000 for a ninth consecutive day and dropped as much as 0.8% to $19,590 on Sunday, a session in which it failed to crack above that round-number level.
US$20,000 is becoming the “new” resistance for Bitcoin even though multiple technical indicators are screaming “buy.”
Bitcoin has traded largely in the same direction as other risk assets like the Nasdaq 100 as the Fed boosts interest rates amid stubborn inflation.
Weakness in the U.S. equities markets pulled Bitcoin back below US$20,000 on September 2, and bears kept the price below the level during the weekend.
Although sentiment remains negative and it’s difficult to call a bottom, investors who believe in the long-term prospects of cryptocurrencies could take the opportunity to gradually build positions at lower levels instead of trying to catch the bottom.
Alternatively, another strategy would be for investors to buy on the upswing, if or when Bitcoin rebounds and stages a more durable rally.
