The year started with a market crash that saw most cryptocurrencies like Bitcoin and Ethereum take a nosedive.
Bitcoin, however, has tried to correct its downward trend only to drop below $45k. Today, BTC is down more than 4% sending its price below $44k.
Bitcoin price has been experiencing ups and downs after dropping below $40k in January following the announcement by the FED that it will gradually increase interest rates in the coming months. It follows reports that the annual US inflation rate has hit a 40-year high of 7% and that interest rates will be raised for the first time in more than three years.
Currently, the Bitcoin support level is at $42,578 and should regain $44,208 before retesting the resistance level at $45,161. If it happens to drop below the support level, it could drop to the $41,625 level, which would be a huge blow to the world's leading digital asset.
While Bitcoin recorded a decline today, other cryptocurrencies have followed suit today. Ethereum, for example, has fallen 5% to $3,097.4.
Other altcoins have recorded bigger declines. Both XRP and Polkadot (DOT) have fallen by more than 9% in the last 24 hours. Solana (SOL) was also down 8% to trade at $106.15.
Due to the sudden downward trend, the overall market cap valuation has fallen by about 3% from above $2 trillion to $1.943 trillion. However Bitcoin investors are optimistic that the coin will soon resume its bullish trend.
Bitcoin is down more than 1.5% since yesterday but will finish the week with a gain of over 10% by the time this article was written. Despite dropping nearly 4% over the last 24 hours, Ethereum has also been up about 10% over the last 7 days.
The token leading the top 10 row this week is XRP, with a gain of more than 30% since last Friday. Today, Polygon, Solana, and XRP are all down about 6%.