Bitcoin and Crypto Market Bleed Red as BTC Surrenders $46K Support
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The past 24 hours have been an excruciating one for Bitcoin (BTC) and the broader cryptocurrency market. The benchmark cryptocurrency and the crypto market, along with Wall Street, took a plunge after the US Fed announced its plans to cut down its balance sheet.
The broader market shed about $200 billion in valuation due to the sell-off as it now sits at $2.03 trillion capitalization. Meanwhile, BTC trades down by -8.6% over the past 24 hours and sits below the $43K mark.
Altcoins also shared in the sell-off with Ethereum and most large-cap cryptos recording double-digit drops over the past 24 hours.
As mentioned earlier, Wall Street also partook in the carnage as the S&P 500 futures (SPX) has dropped by -1.94% since yesterday. The NASDAQ Composite (IXIC) and the Dow Jones Industrial Average (DJI) also traded on a heavily bearish bias in the early trading hours on Thursday. This decline comes as the US Federal Reserve revealed its plans to reduce its bond holdings in the coming months to curtail the growing inflation in the country.
According to the recently-released Fed meeting minutes, officials have not made any decisions yet on the exact time the Fed would begin rolling off its Treasury and mortgage-backed securities but that the process would likely start in 2022 and possibly in the coming months.
Key Bitcoin Levels to Watch — January 6
BTC finally buckled under the sustained pressure around the $48K region as it fell into a downward spiral on Wednesday. However, the bearish momentum has been cut short by the $43K support line, where the price currently coasts along.
That said, it is now apparent that the benchmark cryptocurrency might have kickstarted a bearish wave since its rejection from the $52K resistance in late December. With that, we could see a sustained bearish move over the coming days near the $41K pivot top.
Meanwhile, my resistance levels are at $44,000, $45,000, and $46,000, and my key support levels are at $43,000, $42,000, and $41,000.
Total Market Capitalization: $2.02 trillion
Bitcoin Market Capitalization: $809 trillion
Bitcoin Dominance: 40%
Market Rank: #1
