Bitcoin Cryptocurrency Price Falls (BTC USD), Slides Below the Technical Level

Bitcoin closed in at its lowest in three weeks as the sizzlying rally of the cryptocurrency surrenders to pessimism that prices are too high.

Bitcoin fell as much as 8.3% in the European morning, slipping below $ 33,000. The largest digital asset has trended lower since cutting through $ 40,000, and losses have accelerated in the past two days.

While high crypto prices fueled speculative mania among the Robinhood crowd, it has also made professional investors reluctant to buy at the top. Prices are still more than double the levels from early November and some technical analysts have argued that late is happening.

“Bitcoin has already achieved the fastest price appreciation ever of any asset it has to acquire,” JPMorgan Chase & Co. strategists wrote. John Normand and Federico Manicardi in a report on Thursday. “Current prices so far above production costs that a lower mean reversal in earnings is a recurring concern.”

The biggest crypto defaulters, slipping below the 10-day moving average

Bitcoin was down 6.1% to $ 32,795 from 11:19 am in London. Prices are on track for their first back-to-back weekly decline since early October.

Chart patterns suggest that the market is consolidating within a “bullish pennant” formation, according to Matthew Weller, head of research at Gain Capital Group LLC. A sharp move higher could push prices above $ 50,000, while a lower cut would point to a deeper price below $ 30,000, he predicted.

“It would likely take a more serious fall to remove the established uptrend,” Weller wrote in a note.

Despite the sale, Wall Street has not lost interest in the new asset class. On Wednesday, BlackRock Inc. filed a lawsuit. paperwork to add Bitcoin’s future as a qualifying investment in two funds, the first time the currency manager has offered clients exposure to cryptocurrency.

BlackRock Takes First Step To Crypto Exposure In Two Funds