Bitcoin news – live: BTC price bounces off key level after chaotic few days

More analysis of market indicators suggest – but don’t necessarily mean – that bitcoin may be close to the bottom of this price cycle.

Kevin Svenson has revisited a relative strength index (RSI) analysis he made in April, noting that the latest price crash means the target set has been reached.

“Does this mean the bottom is in?” he wrote on Twitter. “Not necessarily. But it means we are close.”

A day after announcing 2,000 new job openings at Binance, the boss of the cryptocurrency exchange has offered more thoughts on the latest bitcoin price crash.

Changpeng Zhao (CZ) has been doing the rounds of US news networks, appearing on CNBC, Bloomberg and others to explain the impact the downturn has had.

“While lots of projects and exchanges are going to struggle through the bear market, many will come back stronger than before. Those that fail honestly, will start new projects and bring critical learnings from this experience. This is how an industry grow,” he said.

“Even though we have the benefit of experience from previous cycles, we are not immune to this cycle either. We will be doing some deep self-inflection to better prepare for the next bull market.”

Popular crypto market analyst Lark Davis has noted that cryptocurrency exchanges are currently experiencing their largest inflows since 2018, when the market was bottoming out following the 2017 price peak.

“Every time the market tanks investors rush to panic sell the lows,” Davis writes.

Not everyone is convinced that $20,000 will be bitcoin’s bottom in this cycle, with some analysts pointing to the +80 per cent price drops following previous all-time highs.

These corrections typically last for years, not months, meaning we could be in the midst of a so-called ‘crypto winter’.

We’ve heard from Dr Lil Read, senior thematic analyst at GlobalData, who gives a decidedly bearish outlook on bitcoin and the rest of the crypto market.

Bitcoin came within a couple of hundred dollars of dropping to $20,000 yesterday, which holds alot of significance for adherants to a particular view on the cryptocurrency’s cyclical nature.

It is a fact that anyone who has bought and held bitcoin for at least four years has never lost money. For some this is proof of its intrinsic worth as a store of value, however yesterday BTC came within 1 per cent of destroying this notion by dropping below the 2017 price peak.

It’s for this reason that certain crypto market analysts are saying yesterday’s price level marked the bottom, pointing to BTC’s four-year simple moving average.

Others have dismissed this analysis and claim the latest recovery is just a “dead cat bounce” on the way to more losses.

Investors have pulled out nearly $1.6 billion in 48 hours from Tether’s USDT.

The stablecoin’s circulating supply has dropped to about $70 bn, the lowest since October 2021, according to data from CoinMarketCap.

Bitcoin miners are reportedly scaling down production due to the crypto market crash and surging energy costs.

The bitcoin hash rate, which is a measure of the amount of power spent for minting new coins, has slipped by 4 per cent since the beginning of this week, according to data from Blockchain.com.

“Currently, it’s not fun to be in the mining business,” Alexander Neumueller, digital assets project lead at the Cambridge Centre for Alternative Finance, said according to the Financial Times.

After sinking very close to the $20,000 mark on Wednesday, Bitcoin has marginally risen to over $22,000, growing in value by about 3 per cent in the last day.

The leading cryptocurrency is still down by over 25 per cent compared to its price last week.

Ethereum has also grown by over 2 per cent in the last day, but is down by over 30 per cent compared to its value a week ago.

Cardano, polkadot, and dogecoin have grown by over 10 per cent in the last 24 hours.

The overall crypto market has grown by 3 per cent in the last day, but is still below the $1 tn mark.

We reported earlier that more than $1 billion has been wiped from MicroStrategy’s bitcoin holdings following the latest market downturn.

CEO Michael Saylor has today addressed those losses on live TV, appearing on CNBC to say he has a long-term view of the bitcoin market, noting that bitcoin has never moved below its four-year simple moving average in its history. That means anyone who has ever bought bitcoin and held it for more than four years has not lost money.

“I think it’s been a net positive,” he told CNBC.

“Over any time frame – two years, four years, eight years – bitcoin is the best performing asset, I can’t come up with a better idea.”