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Bitcoin Slides Below $46 K

Bitcoin recently fell below the $46,000 support level as traders fled riskier assets due to fears of Omicron spread.

Traders are selling risk in general. Stocks, commodities, and cryptocurrencies are under pressure, while safe-haven US Treasuries increase value.

Recent trading activity shielding investors from panic selling in other asset classes shows that financial markets regard cryptocurrencies as one of the riskiest asset classes. The most critical coins, such as Bitcoin, Ethereum, Binance Coin, and Solana, are falling in value. Meme coins, Dogecoin, and Shiba Inu, are also under attack. The current pullback is extremely broad, indicating that traders are unwilling to focus on coin-specific catalysts and sell leading cryptocurrencies as a group.

Bitcoin has fallen 46,200 support level and is attempting to settle below the 45,500 support level. The RSI remains in the moderate range, indicating that there is still room for more downside momentum to develop if the global market sell-off worsens.

If Bitcoin falls below 45,500, it will $44,700 support level. Bitcoin will push towards $43,300.

Suppose Bitcoin falls below this level. In that case, it will seek support near the lows of the significant sell-off at the beginning of December. It should note that Bitcoin is currently moving lower in a downward channel, and it will need to break out of this channel to break the current trend.

On the plus side, Bitcoin must re-establish itself above $46,200 to consider a price increase. The most significant benefit for investors is that they don’t have to waste time and effort researching individual assets. A slew of community-based, decentralized index funds, including Index Coop, Indexed Finance, Pie DAO, Basket DAO, and Bankless DAO, have emerged last year. They govern by a DAO rather than a centralized corporation or asset manager.

The fund is about $343 million for more than 26,000 investors. According to one investor who has put $50,000 into the fund, what Index is building will be suitable for long-term holding. Imagine taking SPY’s share and redeeming it for the underlying S&P 500 companies.

There’s also the idea of governance voting for the indexing platform. Another advantage is that anyone can gain exposure to the Index instead of centralized funds, such as Bloomberg’s own DeFi Index, which typically restricts accredited investors.

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