Bitcoin Crashes Below $60K as Broader Market Plummets
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Bitcoin (BTC) and the rest of the cryptocurrency market fell sharply in the early hours on Tuesday, as the benchmark cryptocurrency dropped below $60K, to its lowest point in November. At press time, the cryptocurrency trades down by over 10% at $59,150 and down by 13% over the last seven days.
The widespread crash dragged the entire cryptocurrency market valuation down by 9% to $2.61 trillion, according to CoinMarketCap.
Commenting on the decline, chief executive officer at Alpha Impact Hayden Hughes noted that:
“We’ve seen the U.S. infrastructure bill get signed, which has initiated a selloff from traders who are concerned about regulation and taxation.”
Hughes also highlighted his concerns about the continued regulatory crackdown by the Chinese government in the crypto industry. At a recent press conference, spokesperson for the National Development and Reform Commission Meng Wei noted that China would continue to study the option of “levying punitive power prices” for cryptocurrency mining companies.
Meanwhile, a new tax-reporting requirement for digital currencies comprises the recently-approved $550 billion infrastructure bill signed into law by President Joe Biden.
These, coupled with profit-taking by investors following the recent rally, have led to the crash currently playing out in the market. Nonetheless, many analysts believe that this correction was long overdue and assert that it is a good thing for the industry.
Key Bitcoin Levels to Watch — November 16
As mentioned earlier, BTC suffered an unexpected turn of events this morning amid intense profit-taking over the past 24 hours. The primary cryptocurrency fell to a multi-week low at $59K as bears intensified their selling pressure.
This decline eases the overall greed and overbought conditions that have plagued BTC for a little while now. That said, I expect a bearish continuation towards $58K followed by a resurfacing above $60K and, subsequently, back to the $63K pivot area.
Meanwhile, my resistance levels are at $61,000, $61,785, and $63,000, and my key support levels are at $59,000, $58,000, and $57,500.
Total Market Capitalization: $2.61 trillion
Bitcoin Market Capitalization: $1.13 trillion
Bitcoin Dominance: 43.1%
Market Rank: #1
