Bitcoin bounces from 2-week lows, but just hasn’t found momentum

The cryptocurrency market is shed from its recent lows of more than two weeks this Tuesday and both bitcoin and most of the major altcoins have been embarked on a short-term rebound, but without abandoning the price range to which they are anchored. The crypto queen fell to a low of $ 4,580 on Monday, its worst exchange rate since the December 4 flash crash, while ethereum and other tokens also traded lower. Nevertheless, advance about 3%, 24 hours later, and they try to find ‘momentum’.

Bitcoin is still facing the medium-term downward pressureas charts suggest that the world’s most traded cryptocurrency is “not yet oversold,” according to Katie Stockton, founder and managing partner of Fairlead Strategies. At the same time, the volume of operations on the main trading platforms remained low on Monday, according to data compiled by ‘CoinDesk’.

The bulls have been defending the 200-day simple moving average, slightly above $ 47,000 for the past few days, but have not been able to push the price above the 20-day exponential moving average ($ 49,622), technical analysis indicates. This shows the lack of demand at higher levels, as the bears try to push the price below $ 46,000. If the rebound on Tuesday is denied, there are risks that bitcoin will end up at $ 42,000 in the next few days. To this must be added that market observers point out that volumes remain low on crypto exchanges.

“Falling trading volumes could complicate price action”says Edward Moya, a senior market analyst at Oanda, noting that the price of bitcoin could be “very choppy” in the coming weeks. “Many investors remain bullish in the long term and the uncertainty about possible short-term pain causes many traders to wait until bitcoin falls towards the $ 40,000 level,” he notes.

For other experts, the behavior of this Tuesday is nothing more than a continuation of what was seen last week, when the virtual currency failed in any attempt to exceed $ 50,000, where an important resistance resides. “After a brief rally to surpass $ 49,000, the crypto asset has continued a downward march,” says Simon Peters, market analyst at eToro.

Ethereum, for its part, faces a similar situation, as its market capitalization fell below $ 450 billion on Monday, when the crypto asset fell almost 5%. Since hitting an all-time high of nearly $ 4,900 on November 10, ether – the native unit of the Ethereum network – has lost roughly 25% of its value and has remained in recent days below $ 4,000, where there is now a resistance that previously acted as a formidable support. This Tuesday, it rises just above this level and its market value recovers to $ 475 billion.

The total capitalization amounts to $ 2.24 trillion, in a day in which the protagonism is monopolized by some tokens that have left maximums. The LUNA, the native token of the blockchain Terra, has stretched its rally since last week, registering a new all-time high when it exceeded $ 82 and accumulates increases since the last week of almost 50%. Data from Defi Llama showed that the total locked value, or the dollar value of all locked tokens in the smart contract built on a blockchain, on Terra had surpassed that of Binance Smart Chain, this Monday. The shiba inu rises almost 10% in the last 24 hours and the avalanche does it 11%.

Overall, the market capitalization of digital currencies has fallen by almost $ 800 billion in the last 5 weeks. After hitting an all-time high market cap of $ 3 trillion, the total value of crypto assets has gradually declined over the past 5 weeks, in line with declines for bitcoin of around 33% from its all-time highs.

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Bitcoin bounces from 2-week lows, but just hasn’t found momentum

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