On October 8, the trading price of Bitcoin traded at a lower trading level. Bitcoin remained in the lower range of its trading price while doing so.
During this time, the bulls kept trying hard to push Bitcoin’s price higher but things did not go quite well in their favor.
Although the bulls tried hard to form a strong rally, their buying efforts were not able to provide them with a lead against the macroeconomic conditions.
As a result, the bulls were not able to push or keep the price of Bitcoin over the $20,000 barrier for long. This caused the trading price of Bitcoin to experience a downtrend and its price has been below the particular mark since then.
Bitcoin Lost $20,000 Level over the Weekend
At the time of writing, the trading price of Bitcoin is trading at around $19,500. Prior to consolidating at the $19,500 figure, the trading price of Bitcoin had fallen to a low of $19,340.
The trading price of BTC experienced a swift decline right after the unemployment data was shared. The unemployment rate in the United States experienced a decline.
Prior to the latest update, the unemployment rate was 3.7% but it declined to 3.5%. The trading price of Bitcoin also declined alongside the unemployment rate.
Right after the unemployment data was shared, the trading price of the US dollar also started to gain momentum. Therefore, a downward movement was observed in the trading price of Bitcoin.
Due to the recent events, the trading price of Bitcoin suffered a blow, which happened due to a $23 million liquidation that started to take place on October 7.
The $23 million liquidation was observed for short positions while $63 million worth of liquidations were recorded for long positions.
Downside Movement of BTC
As the situation currently is, things may not work out well for Bitcoin. This is because the US Feds have a policy in place that would continue fighting inflation rates with aggressively growing interest rates if positive data keeps coming in.
As the price of BTC is now hovering over $19,000, it is important to mention that BTC cannot lose the particular spot. If BTC falls below the particular level, it would continue falling in the lower trading territory.
If more positive data keeps coming in, the Feds would continue increasing the interest rates to fight off the inflation rates.
This would mean that the price of the USD may continue to rise. This would eventually cause the investors to lose their confidence in Bitcoin and they may start selling BTC on a larger scale.
Due to the strong selling spree, the trading price of BTC would end up falling to $12,500.