Bitcoin has plunged 10.68% in the past day to trade at $24,664 in a bearish momentum that has affected the whole cryptocurrency space.
The primary digital asset has dipped in twelve consecutive weeks from $49,000 in March 2022. BTC had revealed some signals of bottoming out in mid-May before US inflation data added to bearish sentiment.
Bitcoin has shown strong support at $29,000, but the drop below the level will reportedly open more weaknesses that could see the price reach as low as $20,000. The RSI metric shows is under 30, indicating a possible trend reversal in the short term.
The consumer price index jumped 8.6% on a year-to-year basis in May, exceeding expectations that it would decline to 8.2% compared to April’s 8.3%.
The inflation data also caused the Asian markets to plunge on Monday, with Hong Kong’s Hang Seng falling nearly 3.5%, while Japan’s Nikkei 225 dropped 3.01%.
The trend in the major digital asset comes as Celsius network halts withdrawals over what it has termed as extreme market conditions. The step has caused speculations that the company may not have enough liquidity, resulting in its native CEL tokens plunging as high as 50%.