Bitcoin’s fall below the $19,000 level yesterday sent a shock wave across the cryptocurrency industry. Altcoins like Ethereum, XRP, and BNB Coin followed Bitcoin’s lead. Today, the Bitcoin price has started correcting upward but it still has to cross key resistance if it is to maintain its momentum.
Bitcoin Retakes the $19,000 Level
At the time of writing, the price of Bitcoin was $19,160.05. The world’s largest cryptocurrency was trading in the $18,770.97 to $19,237.39 range within the last 24 hours. The most important resistance for the cryptocurrency is at $19,500 short-term. A rise above this level may see Bitcoin recover higher to the next resistance at $19,800.
If the Bitcoin price fails to rise above $19,500, there is a strong chance that the bears will continue to oppress the bulls until the cryptocurrency falls below the support at $18,770.97. At the same time, the overall trend in the market is similar to the Bitcoin price trend.
Why is the Bitcoin Price Falling?
The Bitcoin price is falling for multiple reasons. On one hand, there has been a lack of volatility attached to the cryptocurrency for several weeks. It means that it was only a matter of time until the cryptocurrency either fell or increased significantly against the USD.
Analysts believe that the Bitcoin price is also falling because of the hike in Federal Reserve interest rates. Since the rates started to increase in March, Bitcoin has fallen at an exponential rate. It has also dragged altcoins along. While Bitcoin is completely decentralized and has no direct link with the Federal Reserve, changes in the rates are bound to affect to influence investor interest in Bitcoin.
In other news, Ethereum is also trading at $1,300.14. The second largest cryptocurrency is trading in the $1,260.67 to $1,305.08 trading range. Ethereum has failed to rise above the $1,350 resistance level and has continued to take a downward slope despite the ongoing activities in the Ethereum ecosystem.