Reading time: ~2 m
Bitcoin’s oscillations continue to shrink, which means that the spring is compressed even more. The lower limit of the trading range has shifted to $ 29,000, from where the BTC/USD pair has received support since the start of active trading in New York. The upper limit of the formed triangle moved by 30 thousand dollars.
Over the past 24 hours, bitcoin has added 1.6%, Ethereum does not show positive dynamics, like other altcoins from the top 10. As in previous days, BNB shows a more significant growth of 3.4%.
The total capitalization of the crypto market, according to CoinGecko, rose by 0.6% to $ 1.33 trillion, and the bitcoin dominance index rose by 0.6% to 42.7%. The index of fear and greed of the cryptocurrency by Wednesday fell by 1 point to 11 and remains in a state of “extreme fear”.
The price of bitcoin is in a state of consolidation, equally dangerous for both bulls and bears. On the part of the market cycle, the chances are in favor of the fact that the current consolidation will end with the breakdown of the lower boundary and the elimination of stop losses, strengthening the downward momentum.
Behind the pessimistic forecast is a tightening of monetary policy with a slowdown in economic growth, which puts retail investors in the mode of withdrawing capital from cryptocurrency in favor of consumption. It does not contribute to the improvement of the situation that the expectations of quick enrichment with the help of cryptocurrencies do not work, since now bitcoin is worth as much as in early 2021.
Investments in the industry are becoming increasingly professional, going beyond the strategy of buying and storing. According to CoinShares, investors are withdrawing money from bitcoin and investing it in blockchains that support smart contracts, such as Cardano and Polkadot. Net capital outflows from crypto funds last week amounted to $141 million.
The ECB warned that the high correlation between cryptocurrency and stock markets is usually observed in times of difficult economic conditions and no longer allows for the diversification of investment portfolios with digital assets.
#current #consolidation #bitcoin #replaced #fall