Home Bitcoin NewsBitCoin Forex The crypto market fall resumed – ForexLive

The crypto market fall resumed – ForexLive

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An overview of the crypto market to start the week

FXP
The weekend respite did not break
the two-weeks downtrend in Bitcoin. So far, on Monday, it lost 3.7% to $57.4K.
Total crypto market capitalisation is down 2.8% over the last 24 hours to $2.57
trillion, according to CoinMarketCap.

Thanks to neutral dynamics over the
weekend, the cryptocurrency Fear and Greed Index stabilised in the middle of
the scale, at 50. Among the top performers is AVAX, which has added 37% over
the past seven days and is struggling to stay in growth territory amid a
general pullback in cryptocurrencies.

The technical picture for Bitcoin is
on the bearish side. After Friday’s technical rebound, the first cryptocurrency
hit resistance at the weekend in the form of the 50-day moving average and the
76.4% retracement level from the September-November rally. Stronger selling
from this level suggests a short-term trend reversal and a set-up for a deeper
and longer correction.

The first marker of a bear market
would be a capitalisation drop under $2.38trn, which is 8% below current levels.
For Bitcoin, such a level is near $55k, representing a 20% drop from the peak,
a return to the highs of September and 61.8% of the last rising momentum. An
overcoming of these levels would signal a further drawdown of 20-30%.

The leading altcoin, Ethereum,
received fundamental support from the bulls on Friday, having enjoyed increased
buying on the downside to $4000 and the 50-day moving average. This could be an
indication that the crypto market remains in a buy the dips pattern.

However, we believe the environment
of a strengthening dollar, tighter monetary policy, and a return to normalcy
carries serious risks. Some cryptocurrency investors may want to lock in and
spend profits from rising cryptocurrency prices. Accelerating inflation and
depleting coronavirus incentives, combined with the stalling of the crypto
market in recent weeks, encourage consumers to ramp up spending now before
prices rise further.

And it could form a trend of selling
currencies among small private investors, of which there are many in the crypto
market.

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