Bitcoin slips below $80,000, down about 30% in a year

Bitcoin, the world's largest and best-known cryptocurrency, is going through sharp swings. The crypto market, like the stock market, is restless. Those who have put money into bitcoin over the past few months have taken a heavy hit, and conditions do not yet appear to be improving.

The fall has deepened to the point that bitcoin's price has dropped below $80,000. There were brief spells of recovery, but the decline has not stopped, and bitcoin's momentum has largely stalled.

On Monday, at about 2:30 pm, bitcoin was trading at $80,188. By about 9:30 am it had slipped below $80,000, to $79,370. Apart from a sharp rally between August 19 and 21 this year, it has mostly been in decline.

Looking at what investors have got over the year: in early October last year, bitcoin was priced at about $125,000, which is said to be its highest level so far. It has fallen sharply since then. Over the past year the price is down about 30 per cent. It has lost about 3 per cent in seven days and more than 4 per cent in a month. Since January 1 this year, it is down more than 8 per cent. However, it has gained over the past three months, rising more than 26 per cent in that period.

On the outlook for bitcoin, WazirX founder Nischal Shetty said the price is currently trading below some key moving averages. But technical indicators such as the RSI do not show that the market is overbought or oversold. Rising crude oil prices and inflation are also putting pressure on cryptocurrencies, which has hurt their movement, he said.

Shetty said the $79,000 to $79,500 range could give bitcoin immediate support. If the price falls below this level, the next key level would be $77,500 to $77,700. If the price moves above $80,700 to $81,200, the chances of another rally could rise.

One point to keep in mind: cryptocurrencies trade 24 hours a day and their prices change very fast. Prices can drop sharply within minutes, causing investors heavy losses. Investors should therefore consult experts before putting in money.