Bitcoin’s depressing technical picture | Forexlive

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Bitcoin is down 8.8% over the past week, ending near $19,700. The losses continued to pile up on Monday, reducing the price to $18.5K (-7.77% in 24 hours). Ethereum collapsed 25% to $1300 in exactly one week. Top altcoins fell from 10% (Solana, Dogecoin) to 19% (Polkadot). The exception was XRP (-0.5%).

The total crypto market capitalization, according to CoinMarketCap, decreased by 14% during the week at $903 billion. The cryptocurrency Fear & Greed Index returned to “extreme fear” territory at 21 by Monday.

Running away from risks in global markets has pressured Bitcoin over the past week. Ethereum underperformed, quickly reclaiming the speculative advantage accumulated before the move to PoS.

The local technical picture in BTCUSD looks quite worrying. The pair fell to the June lows, where it spent a few hours during the long squeeze.

Bitcoin’s main fall came Tuesday on higher-than-expected US inflation, raising the possibility of sharper monetary policy tightening at this week’s Fed meeting.

The bear market was confirmed by BTCUSD actively selling after testing the relevant moving averages – the 50-day and 200-week moving averages. The latter, who previously confirmed that the crypto market is growing in the long term, surrendered in June.

And in recent months acted as a selling point from which to intensify, convincing investors that the 10k mark of Bitcoin will be seen earlier than the 30k mark.

News background

Ethereum’s transition to the new algorithm last week was successful, with the network’s power consumption reduced by 99.95%. However, the hopes of crypto bulls, expecting a rise in quotes, were not fulfilled.

Changpeng Zhao, CEO of cryptocurrency exchange Binance, urged traders to be patient. In his opinion, the move to PoS should not be expected to immediately impact the Ethereum ecosystem.

Head of the US Securities and Exchange Commission (SEC) Gary Gensler warned after The Merge update ETH can be treated as a security from a legal perspective.

Nassim Taleb, the author of Black Swan, called bitcoin a “tumor” caused by the US Federal Reserve’s loose monetary policy. In his opinion, 15 years of low interest rates ruined the economy and created bubbles in the market, like BTC.

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

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