Selling pressure has resumed once again in the cryptocurrency market as the cryptocurrency market cap drops below $1 trillion.

Earlier today, the world’s largest cryptocurrency touched a one-week low and is currently trading near $21,100 levels.

Bitcoin is once again under selling pressure as the price of the coin failed to give a weekly close above the 200 WMA, thus failing to turn resistance into support.

This latest pullback has triggered a pullback in Bitcoin’s ongoing retracement which raises the possibility that the price of Bitcoin will once again drop below $20,000 levels.

Speaking to Bloomberg, Katie Stockton, co-founder of Fairlead Strategies, said:

Read:Ethereum founder talks about price predictions and Ethereum fees after the upcoming upgrade

We’ve had some stability over the last few weeks and that has given some people confidence that we may have bottomed out.

But we are not convinced of that.

Global Economic Changes and Their Impact on the Crypto Market:

All eyes are now on global macros and the Federal Reserve’s announcement of a rate hike this week.

According to industry experts, the Fed is likely to announce a 75 basis point rate hike this week.

With June inflation figures higher than expected, there is enough potential for a 100 basis point lift.

On the other hand, there is increasing regulatory scrutiny in the crypto space currently.

The US Securities and Exchange Commission has stepped up measures in the wake of the crypto market crash and bankruptcies filed by some of the largest cryptocurrency lenders.

Recently, according to some reports, the US Securities and Exchange Commission is also investigating cryptocurrency exchange Coinbase for the alleged listing of security-grade currencies (securities).

Under these circumstances, the cryptocurrency market is likely to remain volatile.

Rekt Capital analysts explain:

Read:After the June CPI data was published…More than $200 million of Bitcoin liquidated

After a strong week last week, the crypto market appears set for a slight pullback for Bitcoin, Ethereum, and many altcoins.

It appears to be well positioned for dips which could act as major retests of previous resistances at new support.

For Bitcoin, $20,000 remains a critical support level so far.

Read also:

Cyprus regulator gives cryptocurrency exchange “CryptoCom” the green light to offer its services

Ethereum founder Vitalik Buterin comments on the Ethereum Classic network!