The Changing Landscape of the Crypto Market
The cryptocurrency fear and greed index has been running for the last seven days between 21-23 – in the territory of strong fear, being in the middle of this range on Monday morning.
Bitcoin quickly lost the momentum of growth Bitcoin quickly lost the momentum of growth
At the same time, the value of all coins tracked by CoinMarketCap decreased by 0.5% over the last day to $2.05 trillion. By and large, there is also a sideways range, $2.0-$2.1 trillion, has been predominant over the past seven days, marking a lull in the fight between bulls and bears. We have yet to find out whether this means fatigue from the violent movements of the past months, or preparation for a new strong impulse.
So far, the local victory is on the side of the bears, who prevail in the top coins at the moment, taking away from 0.8% from Bitcoin to 5.7% from Polkadot over the past 24 hours.
Last week, bitcoin failed to develop a growth momentum, and it is once again returning to the consolidation area of $41-42K, approaching it from above.
The development of a decline from these levels in the coming days will be the development of a downward trend from November, deploying BTC/USD from the upper limit of the descending channel. The bearish scenario assumes a dip to $31K by the end of this week to close the July gap. But the doors for such a decline will open only after the bulls pass the $40K level, which they managed to hold in September and earlier in January.
Ether also encountered sell-offs when trying to grow above $3.3K, and the level of the 200-day moving average is now a significant resistance.
Bitcoin and ether, the total capitalization of which is almost 60% of all cryptocurrencies, demonstrate alarmingly negative dynamics. At the same time, their share has been declining since the end of last year. We see either a fundamental change in the attitude of investors to the leaders of the sector, or a certain inertia of altcoins in comparison with the flagships.
Now it seems that crypto enthusiasts are not at all against changing the landscape. However, as is often the case in nature, such changes rarely go smoothly.