Bitcoin Prices Rebound From 6-month Low After Buyers Step In

After plummeting to its lowest level in 6 months on fears of a Russian invasion of Ukraine and ahead of this week’s Federal Reserve meeting, Bitcoin rose on the day on Monday as investors stepped in to buy the cryptocurrency, reports TheSunDaily.

Cryptocurrency 1
Cryptocurrency 1

After falling to $32,951 on July 23, the largest cryptocurrency was recently up 2.5 percent at $37,250. This pushed the drop from November’s all-time high of $69,000 to 50%.

Bitcoin has reached a critical point in its long-term bull trend, according to analysts, and more selling might reverse it.

On Monday, the euro plummeted due to escalating tensions between Ukraine and Russia. NATO said it was placing forces on alert and bolstering Eastern Europe with extra ships and fighter jets, escalating tensions over Ukraine, which Russia criticized.

Growth Stocks Fueling

Nerves about the Federal Reserve’s two-day policy meeting, which begins on Tuesday, contributed to the mix, as the bank is anticipated to confirm that it will soon begin draining the pool of liquidity that has fueled growth stocks.

“The story is really how severe is the tightening,” said Marc Chandler, chief market analyst at Bannockburn Global Forex in New York, stressing that if the Fed reduces the size of its balance sheet, conditions will tighten along with higher interest rates.

Cryptocurrencies have fallen along with other risk assets as investors reduce their exposure to risk in general. Stocks also rallied off their lows in afternoon trading.

Close this week above the $37,400 mark, where there is support from the Ichimoku cloud bottom, according to Katie Stockton, creator of technical analysis firm Fairlead Strategies, may be essential in determining whether the selloff is a correction in an uptrend or the start of a bear trend.

“The long-term upswing is fundamentally reversed by that breakdown,” she warned if Bitcoin fails to rise above this level.

Coinglass Data

According to Coinglass data, approximately $465 million in crypto assets were liquidated in the last 24 hours, with Bitcoin trades accounting for $167 million of that total.

Smaller cryptocurrencies, which tend to move in lockstep with bitcoin, also fell, but not to the same extent as bitcoin. Ether, the second-largest digital currency, was the last trading at $2,451, down 3.5 percent from its previous low of $2,160 on July 27.

Riot Blockchain, Bit Digital, and Marathon Digital, all of which are listed in the United States, have also recovered from their lows, while cryptocurrency exchange Coinbase Global has reduced most of its losses for the day.