Where is Bitcoin’s bottom? | Forexlive

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The cryptocurrency market lost 2% of its capitalization in the past day to $ 2.0trn. Buyers rose in the market between 8-11 January, shortly after soaking to this round level. But as we can see, the strength of the bulls was not long enough.

The Crypto Fear and Greed Index added 2 points to 24. November 18 was the last time we saw levels above 50. Since then, the crypto currency market has been steadily declining, with the overall crypto market capitalization down 30%.

Bitcoin lost 2% overnight, retreating to the $ 42K mark, returning to a local lows area ahead of last week’s rebound. Caution prevails in traditional financial markets on Tuesday morning, so a fall below $ 42K could quickly turn into a test of the $ 40K level.

The bitcoin chart is increasingly showing a downward reversal with a continuation within the three-month downtrend channel. The RSI index on the daily charts remains in neutral territory, which means there is still room for decline. The 50-day moving average is deeper below the 200-day moving average, indicating that the pair is in a bearish trend.

Ether has retreated to $ 3180 from the $ 3500 region, and is sinking under bear pressure.

Methodological sales are exhausting market participants, where the feedback loop is solid: price increases the spur of purchases, raising prices even further. Failures or a prolonged period of side trading cause disappointment and declining interest.

After all, a lot of people come to cryptocurrencies looking for a quick dollar. They are willing to take high risks, but the lack of momentum weakens the excitement. After rapid growth in 2020 and 2021, we should not be surprised to see the market cool.

Bitcoin’s long-term weekly candlestick chart shows that over the past seven years, support has been turning the market around, even during a depression, it is passing through the 200-week moving average. This line is now close to 19k, and by the end of the year, it will be slightly above 20k.

Bear market development for cryptocurrencies could push Bitcoin to 20 by the end of 2022 in a pessimistic scenario. These levels could be the best prices to buy, although experience suggests it could take another year of sluggish growth before seeing a new power surge and FOMO.

This article was written by FxProAlex Kuptsikevich’s Chief Market Analyst.

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