Bitcoin had a weak day on Wednesday, trading just below $19,000.
The coin focused mostly on the U.S. dollar as a result of global markets being unstable and strong dollar indicators.
Bitcoin rose to $20,000 on Wednesday morning but fell below $19,000 as the global stock market faltered and the U.S. dollar continued to strengthen.
Monetary policies around the world are struggling with rampant inflation and central banks such as the United States Federal Reserve have recently tightened their monetary policies.
Despite credit tightness, markets still expect further interest rate hikes by central banks.
This year, the cryptocurrency market has been hit, with nearly $2 trillion (the size of Russia’s economy) wiped off its value since its peak in November. Bitcoin passed through a period of time below $6,000, which is about 60% of its highest value in December.
Since June, Bitcoin has traded in a range from $18,000 to $24,000.
Ayyar of Luno stated that Bitcoin usually tests and retests previous support/resistance levels before moving further down or up.
Haynes expects bitcoin to stay between 18,000 and 24,000 until the market consolidates.
‘’The price of Ethereum spiked up this week because of the merge, Aayyar said. With a larger interest in the Altcoin space now than Bitcoin, the price for Ethereum has accelerated’’.