Bitcoin retreats 7% after sharp rejection at $20K
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Bitcoin (BTC/USD) hastily retreated from the $20,000 level as pressure from the asset class derailed bullish plans on Tuesday.
Part of the Bitcoin news yesterday had been the sharp rise in its price – indeed, the bellwether scrip surged from a low of $18,600 to a two-week high of over $20,300.
BTC rose as fiat struggled
Fiat currencies were struggling, including the GBP, which saw huge trading volumes. James Butterfill, director of research at CoinShares, noted and shared the high BTC trading against the UK currency.
Michael Saylor, founder and CEO of MicroStrategy, also noted the “record volume” of bitcoin on the crypto exchange Binance.
However, trading volumes hitting multi-month highs amid massive sell orders at the psychological level also meant one thing – a drop was coming. It happened, and it’s just as amazing in how quickly it rose and then gave up profits and large sales volumes.
Information from Santimenti’s market clearing platform seemed that bitcoin trading volume had risen to a three-month high as the BTC price fell below $18,800.
As previously reported, some analysts view the worst-case scenario for BTC as a pullback to the June 2022 low and possibly a retest of the $12,000 areas.
Bitcoin is currently hugging the $18,600 zone, down more than 7% in the last 24 hours.
The decline also came as the S&P 500 rebounded from an early rally near two-year lows due to continued jitters in the market over overly aggressive U.S. central bank policy.
The Fed’s more aggressive interest rates mean stocks and other risk assets will continue to hover at levels that are likely to bring more pain. Analysts point to 3,200 for the S&P 500. The index closed Tuesday’s session at 3,647.29.
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