Cryptocurrency

Bitcoin

ORDI

SATS

You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/cryptocurrency-market-sees-significant-downturn-with-brc-20-tokens-ordi-and-sats-among-the-hardest-hit" rel="noopener noreferrer nofollow">Cryptocurrency Market Sees Significant Downturn with BRC-20 Tokens ORDI and SATS Among the Hardest Hit</a> 
The cryptocurrency market experienced a notable decline in January, with BRC-20 tokens, known as Inscription tokens, such as ORDI and SATS, being significantly affected. This downturn is attributed to several factors, including Bitcoin’s recent price movements. ORDI’s price dropped by 34.5%, while SATS plummeted by 50%, largely due to a sell-off triggered by the broader crypto market led by Bitcoin. As of January 25, the correlation coefficient between ORDI and Bitcoin remains positive at 0.66.
The decline coincided with a visible reduction in ecosystem transaction fees and Bitcoin block size share, reflecting decreased demand for Bitcoin Ordinals assets. Bitcoin Ordinals, which utilize Bitcoin’s blockchain network, have price movements that correlate with Bitcoin’s price, as seen with ORDI, which involves writing data directly onto the Bitcoin blockchain and creating a new asset form within Bitcoin’s transaction codes.
ORDI/<a href="https://en.bitcoinhaber.net/tether-ascends-to-top-10-bitcoin-holders-with-strategic-withdrawal" rel="noopener noreferrer nofollow">USDT</a>‘s daily chart showed a classic bearish divergence formation between December 5, 2023, and January 2, 2024, with ORDI’s price making higher highs while the Relative Strength Index (RSI) made lower highs. This divergence preceded a 45% pullback, consistent with the bearish divergence signal of a price correction. Similarly, SATS’s price suffered a decline of over 60% after showing a bearish trend signal with rising prices and a falling RSI.
Overall, the bearish trends observed in ORDI and SATS charts have caught investors’ attention, indicating a potential trend reversal or at least a pause in the dominant bullish trend. Technically, ORDI may have more room to fall in the coming days or weeks. ORDI’s chart pattern suggests a reversal from an ascending triangle formation, with a breakdown target of $38.50 by February after calculating the maximum distance between the triangle’s trend lines.
Conversely, SATS fell towards a converted support level of $0.00000036, with the RSI dropping below the oversold threshold of 30, hinting at a potential recovery towards $0.00000043 by February. If the $0.00000036 support level breaks, SATS risks falling towards the $0.0000029 level, which corresponds to the 0.786 Fibonacci line.
<h5>The post first appeared on BH NEWS: <a href="https://en.bitcoinhaber.net/cryptocurrency-market-sees-significant-downturn-with-brc-20-tokens-ordi-and-sats-among-the-hardest-hit" rel="noopener noreferrer nofollow">Cryptocurrency Market Sees Significant Downturn with BRC-20 Tokens ORDI and SATS Among the Hardest Hit</a></h5>

Cryptocurrency Market Sees Significant Downturn with BRC-20 Tokens ORDI and SATS Among the Hardest Hit

BH NEWS

Other articles published on Jan 26, 2024

Ripple’s Crossroads: Investor Sentiment and Market Dynamics

Cardano sees network growth despite ADA’s poor state

Polygon Nearly Matches Ethereum in Crypto User Count in 2023

CBDC: BOE has released key findings on the digital Sterling!

MAGIC Price Prediction: Will MAGIC Retain Its Top Above $1.30?

Bitcoin Miners on Edge as Halving Looms: Costs Soar, Profits Squeezed

Join our free newsletter for daily crypto updates!