Market Wrap: Bitcoin Settles Around $47K After Biggest 2-Day Rout in 11 Months

Wednesday 24 February 2021, 8:56 AM AEST - 1 week ago

Bitcoins punishing sell-off appeared to decelerate as prices settled around $47,000, after the largest cryptocurrency by market capitalization logged its steepest two-day loss since March 2020 early Tuesday.

  • Bitcoin (BTC) trading around $47,851.27 as of 21:00 UTC (4 p.m. ET). Slipping 11.72% over the previous 24 hours.
  • Bitcoins 24-hour range: $44,964.49-$55,053.91 (CoinDesk 20)
  • BTC trades below its 10-hour and 50-hour averages on the hourly chart, a bearish signal for market technicians.

Bitcoin trading on Coinbase since Feb. 17.

Bitcoins price tumbled along with U.S. stocks after markets opened in the U.S. Tuesday, bringing the cryptocurrencys decline since Sunday to 20%, the most for a two-day period since the coronavirus-fueled crash in March 2020. The decline has wiped out more than $100 billion of bitcoins market value, which last week climbed past $1 trillion for the first time.

And while many traders are still bullish on bitcoin in the long term, analysts said the largest cryptocurrency may have further to fall in the coming days, traders and analysts said.

As is often the case in digital asset markets, this weeks decline didnt appear tied to any specific negative news or fundamental data, but to technical factors such as worrisome signals from price charts and a general sense that the market had run too far, too fast: Bitcoins price had doubled this year to an all-time high price of more than $58,000 as of Sunday.

This weeks price retreat trimmed the 2021 gains by as much as 59%, versus 3.6% for the Standard & Poors 500 Index of U.S. stocks.

The current market is extremely overheated, Flex Yang, founder and chief executive officer of Hong Kong-based crypto lender Babel Finance, told CoinDesk. Prices could fall as low as $40,000, he said.

Bitcoin volumes on eight major exchanges tracked by CoinDesk 20.

The price move came on strong volume, though, indicating high activity on the part of sellers ...

Read full story on CoinDesk

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