Bitcoin Slides to $115K as Dow Jones Rally Stalls at December-January High
Bitcoin’s price took a hit early Friday, breaking out of its recent range play as U.S. equity markets showed signs of exhaustion at key price resistance levels. The leading cryptocurrency by market value dropped over 2.5% to $115,170, hitting its lowest point since July 10, according to CoinDesk. This move marked a downside break of the recent consolidation between $116,000 and $120,000.
The bearish resolution was foreshadowed by key technical indicators, increasing the likelihood of Bitcoin revisiting the former resistance-turned-support at $11,956, the high reached in May. The broader cryptocurrency market also saw a decline, with other major cryptocurrencies like ether (ETH), Solana (SOL), and XRP (XRP) losing between 2% to 3%. The CoinDesk 80 index, which serves as a broader market gauge, dropped by 2.6% over a 24-hour period to 898 points.
On the traditional financial front, the Dow Jones index fell by 0.70%, signaling a potential bearish reversal at the 45,000 level. This horizontal resistance has been identified by previous highs reached in December and January, and a reversal from this point could impact sentiment in the crypto market.
In other news, Volmex’s Bitcoin and Ether Volatility Futures have seen a surge in volume, surpassing $10 million in just the first month of trading. This indicates that traders are looking beyond just the price of Bitcoin and Ether, and are exploring new ways to trade based on volatility.
Overall, the market is currently facing some bearish pressure, with Bitcoin and other cryptocurrencies experiencing a dip in price. It will be interesting to see how the market reacts in the coming days and whether Bitcoin can find support at previous levels or if further downside is in store. Stay tuned for more updates on the cryptocurrency market.
