Cryptocurrency bitcoin plummeted to a two-month low

Since the evening of August 17, the price of the flagship cryptocurrency has fallen sharply below the support level of $ 28,400. Bitcoin has tested the $ 24,800 mark and is currently trying to recover its position to $ 27,000.

According to CoinMarketCap, at the time of writing, the main cryptocurrency was able to rise to $ 26,440 with a market capitalization of $ 514.5 billion. Despite the dynamics aimed at recovery, the digital asset’s performance dropped by more than 7.5% per day. Traders' deals reached almost 100% productivity and amounted to more than $ 33 billion.

Technical indicators:

• The Relative Strength Index (RSI) for BTC/USD is below 40.
• The main support levels are $ 25,800 and $ 25,500.
• The main resistance levels are $ 27,000, $ 27,500, and $ 28,500.

Market analysts note: BTC and other altcoins suffered a significant drop on Thursday, breaking the stagnation observed over the past few weeks. Traders began to actively sell digital assets in anticipation that interest rates announced by the US Federal Reserve would remain elevated longer than originally expected.

At the July meeting of the Central Bank, the Fed raised the benchmark interest rate to the highest level in 22 years. Now the markets are hoping that the US Central Bank will not change these figures again, at least until the end of 2023. The consequences were immediate — the stock market fell for the second day in a row.

During the industry turmoil, long positions worth about $ 823 million were liquidated, resulting in significant losses for traders who were betting on rising crypto asset prices. BTC holders suffered the most, losing $ 488 million, followed by ETH traders who lost a total of $ 303 million.

The situation has been further exacerbated by the weakening of foreign currencies, financial market turmoil in the Asian region, and rising bond yields to their highest levels in the past decade. As a result, the major cryptocurrencies BTC $95,976.75 Bitcoin -0.95% Market capitalization $1.9 trillion VOL. 24 hours $2.36 billion , ETH $3,335.71 Bridged Ether (StarkGate) -1.39% Market capitalization $0.3 billion VOL. 24 hours $1.42 billion suffered significant losses, reaching their lowest level since the beginning of summer.