Bitcoin sharply resumed its decline yesterday and lost about $3,500 in value over the course of the day. And today it recorded another loss of $2,200. Yesterday, 591,000 bullish traders were forced to close positions. In total, they lost about $3.7 billion. However, traders lost only $1.3 billion in bitcoin transactions, the rest of the money was lost on other cryptocurrencies. Thus, it is bitcoin that continues to pull the entire cryptocurrency market up and down. Some experts cited the reasons for the fall in the US stock market, as well as a possible increase in taxes for the wealthy in the US, almost doubled. However, we believe that on such news, bitcoin and its "siblings" should have risen in price. If the stock market fell, it means that sales of securities followed, and the money from their sale could just migrate to the cryptocurrency market. Which didn't happen. The same applies to the topic of possible tax increases. When it became known a few weeks ago that the US was planning to increase the corporate tax to 28%, bitcoin felt great.
Also, according to CoinGecko, the bitcoin dominance index fell below 50%. This means that traders get rid of the first cryptocurrency faster than other cryptocurrencies. In other words, the demand for altcoins, in general, is growing, and for bitcoin, it is also growing, but at a slower pace. And this is in the long run. Now, in the context of the last two weeks, demand is falling for both altcoins and bitcoin. Experts also note that the transaction fee on the bitcoin network has grown to a record $62.7. Commissions began to grow when power outages began in Xinjiang province in China, hitting the network hash rate, which, according to various estimates, fell from 20% to 40%. According to the latest data, the power supply in Xinjiang County is already recovering, and miners are resuming coin mining. Now in the coming days, when the electricity supply is fully restored, it will be possible to conclude whether the market will be able to recover from the shock. At the time of writing this article, bitcoin quotes continue to fall, which means ongoing sales of coins on exchanges. As a reminder, Scott Minerd, investment director of Guggenheim Partners, said yesterday that bitcoin could be adjusted to $20,000-$30,000.
Let's take a look at the hourly time frame, which we have already provided in the last articles. There is a clear downward trend line here, which shows that the downward trend has already formed. Sellers now need to keep digital gold below approximately $56,500. Above this level, the bulls can take the initiative again.
