fxs_header_sponsor_anchor

Bitcoin’s depressing technical picture

Market picture 

Bitcoin is down 8.8% over the past week, ending near $19,700. The losses continued to pile up on Monday, decreasing 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%).

Total crypto market capitalisation, according to CoinMarketCap, was down 14% for the week at $903bn. The cryptocurrency Fear & Greed Index returned to “extreme fear” territory at 21 by Monday.

Flee from risks in global markets has pressured Bitcoin over the past week. Ethereum has underperformed, quickly taking back the speculative advantage accumulated before the move to PoS.
The local technical picture in BTCUSD looks quite worrying. The pair has fallen to the lows of June, 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 a sharper monetary policy tightening at this week’s Fed meeting.

The bear market was confirmed by BTCUSD actively selling off after testing the significant moving averages - the 50-day and 200-week moving averages. The latter, which had previously confirmed that the crypto market was growing over the long term, capitulated in June. And in recent months has acted as a selling point from which to intensify, convincing investors that the 10k mark of Bitcoin will be seen sooner than the 30k mark.

News background 

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

Changpeng Zhao, CEO of cryptocurrency exchange Binance, urged traders to be patient. In his view, the move to PoS should not be expected to impact the Ethereum ecosystem immediately.
US Securities and Exchange Commission (SEC) chief Gary Gensler has warned after The Merge update ETH can be treated as security from a legal perspective.

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

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.