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Bitcoin Bulls Struggle to Defend $8,450 and Drag Cryptocurrency Market Down

January 23, 2020 at 14:51 by Matt Jackson

Bitcoin prices have dipped below the $8,450 support level today, and bulls will be hoping to defend this level in order to instigate a bounce back to test $9,000 resistance in the near future. Bitcoin’s slide has seen the rest of the cryptocurrency market in the red, with only a small number of significant price gains. Swipe has seen an increase of nearly 15% over the past 24 hours, against the dollar.

Bitcoin broke down from an ascending channel on January 19, its prices falling from $9,100 to $8,650. It continued to trade within this range for the proceeding days before sliding down to $8,450 earlier today. There is some support at this level, but bulls will be hoping to defend this support in order to prepare for another push at $9,000.

The rest of the cryptocurrency market has followed Bitcoin down. Bitcoin SV, which has posted significant gains since the turn of the year, has seen some correction downwards, shedding nearly 8% off its price to trade at $284.66. In fact, only a small number of coins have posted any gains.

Swipe barely sits among the top 50 coins by market cap, but it has posted gains of nearly 15% in the past 24 hours. The company, which provides crypto payments with a view to offering traditional banking and spending services to its wallet holders, recently updated its payment software.

Another coin looking to bridge the gap between traditional fiat spending patterns and modern cryptocurrency technology is Square. The company, which is owned by Twitter CEO and co-founder Jack Dorsey, has filed a patent to create a payment system that enables users to pay and receive funds in different asset types in real-time. A user would be able to pay in Bitcoin while the recipient receives their money in fiat, and vice versa. Dorsey is a cautious proponent of cryptocurrency, having said that it is “not functional as a currency” before going on to say that “the peaks and troughs are like an investment asset and are equivalent to gold.” He made the comments in September 2019 when the world’s largest cryptocurrency was trading at $10,250.

Meanwhile, a number of central banks have met to discuss the pitfalls of cryptocurrency, and are also believed to be discussing the possibility of a Central Bank Digital Currency that would effectively act as a centralized cryptocurrency. The group includes representatives from the Bank of England, the Bank of Japan, the Bank of Canada, the European Central Bank, and others.

Bitcoin (BTC) is down 3.39% at $8,366.56 while Ethereum (ETH) has also dropped, falling 3.08% to $162.20. Ripple (XRP) and Bitcoin Cash (BCH) have seen their prices fall 3.82% and 2.27% to $0.227 and $335.04 respectively. Bitcoin SV (BSV) is down 7.63% and is now changing hands at $284.66.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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