This week, the crypto-economy has been losing value, and in the last 24 hours, it has dropped 2.5 percent to $2.3 trillion. Bitcoin, the most popular cryptocurrency, has dropped 4.8 percent in the last seven days, while ethereum has dropped 11.7 percent in the last week. Cryptocurrency supporters are wondering if the bull market is over and if the bear market has begun as a result of the downward trend.
The Crypto Economy is Still Being Clawed Down by Bears market
Following all-time highs on November 10, the crypto asset economy has lost a significant amount of value and is continuing to fall every few days. Bitcoin (BTC) managed to stay above the $60K zone for six days after reaching $69K per unit on November 10, and it also managed to stay above the $50K zone for just over two weeks. After falling below $50K on December 4, it hit a low of $43,972 on the same day but has since risen above the $47K mark.
Bitcoin (BTC) is still trading at a 149 percent premium to where it was on this date last year. On the other hand, Bitcoin is down 26.1 percent from its all-time high and more than 30 percent from its low. Ethereum (ETH), the second most popular crypto asset, is down 11.7 percent this week, with a 30-day loss of 17.5 percent. Ether, meanwhile, is still up year to date, with the price per ETH over 550 percent higher than this time last year. The crypto asset is currently trading for $3,845 per ether, well below the $4K mark.
Bitcoin drops below its 200-day moving average, implying that more losses are on the way, according to analysts.
According to Alex Kuptsikevich, senior market analyst at Fxpro, the cryptocurrency market “came under impressive pressure on Monday afternoon,” according to Bitcoin.com News. Furthermore, from a score of 28 to 21, the Crypto Fear and Greed Index has returned to extreme fear territory. “It’s difficult to pinpoint the new wave of pressure trigger,” Kuptsikevich explained, “but it intensified and widened after the two largest cryptocurrencies gave up their key positions.”
“Bitcoin is currently trading below $47K, having fallen below its 200-day average. These are the lowest values since early October, excluding the intraday drop on December 6th, and bitcoin has lost a third of its value from its peak levels just over a month ago,” the analyst continued. “The highs at 69k were, by and large, the starting point for pressure on the BTCUSD. If the downtrend continues, it’s worth paying closer attention to the 40k and 30k levels, which are significant round levels where Bitcoin has previously turned upward.”
What Experts Say About the Bear Market
The senior market analyst at Fxpro went on to say:
“The entire cryptocurrency market is in a bear market.” Their total capitalization is already 30% lower than it was at its peak, and attempts to consolidate beyond critical levels have failed. After the market capitalization fell by more than half last summer, investor interest in cryptocurrency resurfaced. This indicates that a further 30% drop from current levels is possible.”
‘Bitcoin Needs to Break Through Descending Trendline,’ says Huobi Group Co-Founder.
According to Du Jun, the co-founder of Huobi Group, BTC has begun to stabilize after its recent decline, with the analyst focusing on the $47,000 support level.
“BTC maintained a sideways oscillation at midday, according to data from Huobi Global, with the upper edge of the oscillation range at $47,500 and the lower edge at $46,200,” Du Jun told Bitcoin.com News. “The price began to stabilize after last night’s decline, and the pivot of the current oscillation is near the price low of December11, which can be seen as a test of the short-term support level,” according to the 4-hour level K-line chart.
Huobi Group’s co-founder concluded:
“At the daily level, today’s solid cross negative is slightly longer, with a clear downward trend in the price lows. The price is currently in a bearish trend, and stabilizing at 47,000 will only halt the downward trend for the time being; to counterattack, the price must also break through the descending trendline and the 50,800 block.”
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