Bitcoin drops to $20,000, over 71,000 crypto investors liquidated

Following the US Fed Chairman’s address, the flagship cryptocurrency temporarily lost its footing, indicating that markets had yet to price in Jerome Powell’s somewhat aggressive remarks.

The current price of bitcoin is $20,674.51 and there are $39 billion in transactions every day. 4.10% less Bitcoin was traded the day before. Less than $1 trillion in crypto assets were traded globally, down 4.11% from the previous day.

For the day, 71,726 traders were liquidated, totaling $237.07 million in liquidations.

In a highly anticipated speech at the Federal Reserve’s annual economic symposium in Jackson Hole, Wyoming, Federal Reserve Chairman Jerome Powell predicted that tight monetary policy will likely be needed for some time.

According to Powell, “Restoring price stability will take time and requires using our tools, forcibly to bring demand and supply into better balance.”

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The largest single liquidation order, worth $1.91 million, was placed on FTX for BTC-PERP.

There could still be more suffering for bitcoin. A weekly chart momentum indicator, which should show the first bearish signal in more than three years, sends this message.

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Within a week or two, Bitcoin’s 50-week simple moving average (SMA), which is now drifting lower, is expected to cross below the 100-week SMA, marking the first bearish crossover since February 2019.

The next bearish crossover should, in principle, signal a deepening of bearish momentum, but the signal has a flawless track record for catching sellers on the wrong side of the market, similar to the negative SMA crossover that was confirmed on the three-day chart. last month.