Bitcoin climbed back above $40,000 for a few hours today in what was a short-lived attempt to ignite a rally to $42,200. However, momentum was lost and prices have since trended back toward support at $38,800. If the drama really is over, then it's likely we form a range between $36,400 and $41,000.
What a difference a day makes! Bitcoin rallied hard today, with prices back to the key $42,000 level. Once support, this level will now act as resistance for a re-energized market. With the continuous selling seemingly behind us, we are left wondering: What actually happened?
The key $42,000 level was swept aside by the bears as selling pressure finally broke the auto-liquidations engines and saw $8B of crypto longs evaporate. The net effect? over $500B was wiped off the total market cap of the cryptosphere as Bitcoin dominance briefly moved from 40% back to 45%.
Bitcoin has, so far, managed to maintain price action within yesterday's price range. The early rally has been met with selling, and prices are currently resting above the key support level of $42,200. We are at a crossroads: Its next move, either below $42,000 or above $47,000, is going to be big news.
Welcome to the Weekender: Your weekly round-up of all the top news stories, as chosen by you, our readers. Amazingly, and quite rightly, none of you gave Elon Musk any attention, which is more than can be said for the Bitcoin price, but such is the noise in price action. So, the biggest news of the week?
Today feels less than jovial, both in traditional and crypto markets. In the former, rising bond yields and rampant inflation fears sobered elevated valuations, pushing equity indexes lower. In the latter, probably affected by the general risk-off sentiment, selling took place as well.