Bitcoin (BTC) Drops 7% to Hit 3-Week Lows

Bitcoin (BTC) price is down 6.5% to trade near $21,700 after it failed to clear the $25,000 resistance zone. For about 4 weeks the world’s largest cryptocurrency made successive attempts to break above $25,000 without success.

Today’s sharp move lower suggests bulls are exhausted as Bitcoin failed to secure a close above the 100-DMA. Even more worryingly for the bulls, the digital asset is now threatening to close below the ascending trend line that connects higher lows on the daily chart.

A break and daily close below $22,500 is likely to invite more pressure on bulls. Futures are also down on worsening risk sentiment, which is also weighing on cryptocurrencies.

Ethereum (ETH) price is also down 6% to push the world’s second-largest digital asset to $1,730. Ethereum buyers also failed to secure a close above $2,000 with the reversal now threatening to unwind some gains made on the back of the Ethereum Merge event that is due to take place in a few weeks.

Overall, the total crypto market cap is down to $1.01 trillion after hitting a two-month high on Sunday.

By Senad Karaahmetovic

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