Bitcoin extended losses, deepening its December decline with the world’s most popular and largest cryptocurrency by market capitalization trading 5% lower to $47,912, after it slid below $50,000 mark on Tuesday. Bitcoin, famed for its volatility, has shed more than $21,000 since hitting a record in early November, and is up around 64% in 2021 (year-to-date or YTD).
“Bitcoin has shown signs of trend reversal and has broken out of the trendline. It is retesting the support around $47k. The Bitcoin chart is making higher highs and higher lows on a 4 hour timeframe, however the $45k level needs to be defended to continue the uptrend. Immediate support and resistance are expected around $47.5k and $52k,” said Siddharth Menon, COO of WazirX.
Meanwhile, Ether, the coin linked to ethereum blockchain and the second largest cryptocurrency, declined more than 5% to $3,820. On the other hand, Dogecoin prices also slipped around 5% to $0.14 whereas Shiba Inu also plunged 6% to $0.000035.
Other digital tokens such as Solana, Polygon, Litecoin, Terra, XRP, Polkadot, Stellar were also trading with cuts over the last 24 hours. Dragged by the slide in the coins, global crypto market capitalization took a knock of around 6% to $2.37 trillion, as per CoinGecko.
Cryptocurrency prices went on another roller coaster this past year: surging, plunging and then cycling again. El Salvador became the first country to make Bitcoin legal tender this year whereas the first exchange-traded fund tied to Bitcoin futures also began to trade.
Bitcoin, the most popular digital token had fallen about 30% over the past five weeks after setting a record high of almost $69,000 in early November. News that central banks around the globe are considering tighter monetary policy had weighed on risk appetite over the last few weeks.
(With inputs from agencies)
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