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Bitcoin: The dark side of institutional love – ForexLive

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An update on Bitcoin after the volatile start to the week

Bitcoin has suffered from the former
institutional love affair with it. On Monday, a significant sell-off in the
stock and bond market prevented the first cryptocurrency from returning to the
upside. The recent sell-off confirmed a bearish scenario for bitcoin for now.
And one should watch closely to see if this situation becomes toxic for the
entire cryptocurrency market.

Bitcoin fluctuated widely on Monday, and
at some point, it managed to recover an initially weak start. But pressure on
equities in the US trading session and the ongoing strengthening of the dollar
dragged crypto down. From intraday highs, bitcoin lost 6.3% by the end of the
day, at one point falling to $55.6K.

The bears showed who is in control now,
clearly demonstrating that bounce attempts are stumbling into aggressive
selling. In such an environment, it should come as no surprise that the
cryptocurrency Fear and Greed Index moved into “fear” territory,
losing 17 points to 33 – its lowest level since October 1st.

Perhaps the following line of defense
for the bulls could be the $52.0-53.5K area, where the previous extremes and
the 61.8% retracement from the September-November rally are concentrated.

One can only wonder how ETHUSD continues
to hold its critical $4000 level amid such aggressive pressure on BTCUSD. The
first cryptocurrency appears to be under pressure from institutional sell-offs,
of which there are drastically less in Ether.

This article was
written by FxPro‘s Senior Market
Analyst Alex Kuptsikevich.

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