Bitcoin is trying to consolidate near this month's lows and faces further downside risk

Bitcoin is trying to consolidate at a three-week low as stocks continue their downtrend.

The largest cryptocurrency fell 1.9% today, Tuesday, to $16,277, its lowest level since November 29; before reversing its trend at $16,787. The bearish price action of cryptocurrencies coincided with the Standard & Poor’s 500 index falling for a fourth straight session amid tensions over the US Federal Reserve’s potential path to raising interest rates.

In an interview with Bloomberg, Fairlead Strategies founder Katie Stockton predicted that Bitcoin will “test the November lows near $15,600 in the coming weeks” after the cryptocurrency failed to test levels in the $17,000-$18,000 range. He added: “We expect Bitcoin to end up more bearish, which increases the risks of a long-term drop to $13,900.”

Speculation about the value of Bitcoin fluctuates wildly

Cryptocurrencies have seen a rough year in 2022 after reaching record highs late last year, as they were hit with shocks from every direction, from Federal Reserve policy tightening, the collapse of the Terra/Luna system, and hedging. “Three Arrows Capital” and “Exchange” funds. FTX”. It has also been closely linked to US stocks over the past two years. According to Bloomberg, Sean Farrell, digital asset analyst at Fundstrat, believes this is the reason for the fall in cryptocurrency prices yesterday, Monday.

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