Bitcoin price falls under $21K as traders send 84K BTC to exchanges

Bitcoin price falls under $21K as traders send 84K BTC to exchanges

Volatility claims many a late long position with BTC price action failing to preserve support from recent days.

Bitcoin price falls under $21K as traders send 84K BTC to exchanges

Bitcoin (BTC) fell further after the Sept. 13 Wall Street open as the dust settled on unexpectedly high United States inflation.

Bitcoin price falls under $21K as traders send 84K BTC to exchanges

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

BTC price eyes 9% daily losses

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD giving up $21,000, down up to 8.45% on the day.

Bearish tendencies set in after the U.S. Consumer Price Index (CPI) print for August arrived 0.2% higher than expected.

This, in turn, boosted the likelihood of a 75 or 100-basis-point key rate hike next week by the Federal Reserve — something that would pressure already creaking risk-asset markets.

Bitcoin price falls under $21K as traders send 84K BTC to exchanges

Fed target rate probabilities chart as of Sep. 13, 2022. Source: CME Group

Bitcoin proved especially sensitive to the event, with downside nonetheless contained by anticipated support at $20,800.

BTC/USD also managed to take out the latest CME futures gap created at the weekend, this lying between $21,300 and $21,500.

“BTC just took out the previous swing low I marked out yesterday and today,” popular trader Crypto Ed, who forecast both levels, confirmed in part of a tweet following the CPI release.

U.S. equities faced similar woes, with the S&P 500 down 3% and the Nasdaq Composite Index 4% lower at the time of writing.

For Jurrien Timmer, director of global macro at asset manager Fidelity Investments, there was no reason to believe that a risk asset renaissance would set in until the Fed stopped its rate hikes altogether.

Exchange inflows hit 10-week high

Volatility meanwhile claimed the most BTC long liquidations in a week, these totaling $45 million for Sep. 13 at the time of writing.

Total crypto long liquidations were much higher at $168 million, according to data from on-chain monitoring resource Coinglass.

Bitcoin price falls under $21K as traders send 84K BTC to exchanges

Crypto liquidations chart. Source: Coinglass

Analytics platform CryptoQuant meanwhile showed exchange inflows on the day already hitting their highest since July 1 at 84,000 BTC.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Rate article
( No ratings yet )
×