Bitcoin Looks Set to Take a Severe Dive

As Bitcoin Drops Below the 200-Week Average, the cryptocurrency market is Expected to Decline

On Monday evening, there was a sell-off in the cryptocurrency market. In the previous day, it lost 3.8%, dropping to a capitalization of $1.091 trillion, which is close to three-month lows.

Over this time, the leading altcoins have lost between 3.7% (Tron) and 7.9% (BNB), with Bitcoin losing 4% to 25.7 and Ether losing 3% to $1814.

Bitcoin's price has fallen below its 200-week average ($26.3K) as a result of the sudden decline. Position traders are currently concentrating all their attention on whether the price recovers to the area above that line before the week is out. Otherwise, we should be ready for a significant sell-off that might bring prices as low as $22K. In light of the recent two months' string of lower highs and lower lows, this is the most likely outcome.

An alternate, less probable scenario would be an upward turn following a brief decline below the 200-week average. According to this dynamic, Bitcoin may be gaining ground among major players at this price, indicating significant upside potential.

The 7th week of outflow, according to CoinShares, saw a $62 million decline in cryptocurrency investment. Ethereum investments also decreased by $3 million. Tron, a platform for smart contracts, experienced a $51 million outflow over the course of the week as a result of one of the providers closing the offering.

Coin News

Bitcoin won't be able to experience considerable increase during the summer, according to Bloomberg strategist Mike McGlone. He also doesn't rule out a significant decline in the cryptocurrency market in the face of a lack of change and a stagnant equities market.

According to The Block, bitcoin's 30-day average volatility has decreased from the asset's typical average of 71% to 32% on a year-over-year basis. On this metric, digital gold has been surpassed by the well-known Meta and Amazon stocks.

The US Securities and Exchange Commission (SEC) has filed a lawsuit against Binance, a cryptocurrency exchange, and Changpeng Zhao, its CEO. 13 charges were made by the regulator, including staking, Simple Earn and BNB Vault products, and unlicensed offers and sales of BNB and BUSD coins.

JPMorgan will use blockchain to accelerate interbank transactions in India. The banking behemoth has agreed to integrate its Onyx settlement technology built on blockchain with five Indian banks.