The leading global cryptocurrency continues to decline, dropping to its lowest level since last month
The bloodbath continues for Bitcoin and the cryptocurrency market as BTC drops to its lowest price since August during a global sell-off of risky assets. Bloomberg experts believe that a drop to $39,900 is not out of the question.
Bitcoin drops to lowest level since August after global sell-off of riskier assets drives total cryptocurrency market value below $2 trillion https://t.co/0ZEPeBTPDG pic.twitter.com/wD1bu1wZwV
– Bloomberg Markets September 21, 2021
Bitcoin drops to $40,327 before regaining some of its losses
The major cryptocurrency continues to decline after losing more than 5% on September 20th. Overall, in the past three days, bitcoin has fallen more than 17%, falling from $48,719 on September 18 to $40,226 – its lowest level since August. from this year.
This includes the 7% that lost overnight, after which BTC fell and stopped slightly above $40,000.
The total value of the global crypto market has been pushed below the $2 trillion streak. However, Crypto King has now recovered to the $43,218 level on the Kraken exchange.
Ether, ADA, DOGE, DOT follow suit
According to data provided by crypto tracker CoinGecko, the top 10 cryptocurrencies that track Bitcoin in this scale are also declining: Ethereum, ADA, DOGE, DOT, and SOL. On Monday, September 20, all these currencies traded off their daily lows.
The collapse of bitcoin and altcoins was caused by fears of a lack of liquidity faced by China’s second largest real estate company – China’s Evergrande Group – whose 2 trillion yuan debt drove Hong Kong’s Hang Seng Index lower and hit global stock markets, along with the currency market. encrypted.
Evergrande’s liquidity crunch has triggered a massive sell-off of risky assets, including cryptocurrencies. According to data from Bybt analytics over the past 24 hours, nearly $1.5 billion worth of cryptocurrency has been liquidated on various cryptocurrency exchanges. These leveraged long and short positions fail to meet the margin requirements.
Bitcoin could drop to $39,900
According to Bloomberg, Bitcoin has formed a hammer pattern in the chart – above the lower edge of the Ichimoku cloud. If this bearish movement continues, the major cryptocurrency may continue to decline until it reaches $39,900.
According to Katie Stockton, founder of Fairlead Strategies, the above is a potential line of support. However, she believes that Bitcoin is still in a long-term uptrend.
Overall, Bitcoin is up more than 40% this year, while Ethereum has outperformed it, growing four times higher.
