Cryptocurrencies are Far from being supported
The cryptocurrency fear and greed index dropped to 11 on Sunday, and only slightly rose to 13 by the beginning of the day on Monday. The capitalization of the crypto market lost another 1.1% in a day to $1.61 trillion, the lows since August.
The share of bitcoin is growing as altcoins are falling faster The share of Bitcoin is growing as altcoins are falling faster
As is often the case with a prolonged sale, altcoins are falling with acceleration to the first cryptocurrency, causing an increase in the share of BTC, which is already 41.3% against the lows of 39.3% in mid-January. Bitcoin’s share of 40% looks like a turning point that twice triggered the correction of the crypto market.
It is possible that this level has become something of a signal that optimism about altcoins has gone too far.
However, the growth of bitcoin’s share does little to help its price. On Monday morning, we see the sixth consecutive bearish daily candle, and the price has rolled back by $35K. Bears are quite capable of pushing the price to $32.5K, closing the gap in July and returning the rate to the support area of last summer.
Worryingly, the sharp collapse on Friday was not followed by any significant rebound. A number of observers point out that this is an alarming signal, suggesting a further decline in the market, since we did not see the final capitulation. Without capitulation, a canopy of sellers will remain in the markets.
Bitcoin is Mercilessly declining Bitcoin is Mercilessly declining
The price of ether dropped to $2,400, that is, less than half of the peak prices in November.
Events are still developing according to a bearish scenario, while in general they repeat in the general mood what we saw in 2018. Long-term buyers can clearly stay away from purchases at prices above 30 thousand for bitcoin and 2 thousand for ether.
We believe that long-term investors will be eyeing purchases in the region of 20-30 thousand for bitcoin. Whether these purchases will be at the upper or lower border depends, among other things, on the situation on the stock markets.
The return of buyers there will support the demand for risks among institutions. But while we see only steady sales from them, it’s too early to talk about buying.