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(BTC/USD) Bitcoin will fall until the bulls capitulate, ETH/USD Has Lost, (XRP) Ripple And (ADA) Cardano Have Decreased As Well

(BTC/USD) Bitcoin will fall until the bulls capitulate, ETH/USD Has Lost, (XRP) Ripple And (ADA) Cardano Have Decreased As Well| FXMAG.COM
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  1. This situation points to an increasingly rapid exit from cryptocurrencies
    1. The Cryptocurrency Fear and Greed Index has collapsed to 11

Bitcoin is trading near $33.5K on Monday morning, declining for the fifth consecutive day. Over the past 24 hours, losses are 2.3%, and are approaching 14% over the past seven days. Ether loses 3.5% in 24 hours and 14.3% for the week, settling near $2450. Altcoins from the top ten are down between 0.8% (XRP) and 4.3% (Cardano).

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This situation points to an increasingly rapid exit from cryptocurrencies

Total crypto market capitalisation, according to CoinMarketCap, is down 2.3% overnight to $1.54 trillion. More worryingly, volumes are rising along with falling prices. This situation points to an increasingly rapid exit from cryptocurrencies, even though the process takes place without sharp dips. We see an orderly exit – a sure sign that downward sentiment may prevail.

The Cryptocurrency Fear and Greed Index has collapsed to 11

The optimists, however, have something to hang on to. The Cryptocurrency Fear and Greed Index has collapsed to 11. Over the past year, the index has been at the current or lower level six times, and on each occasion, we have seen either consolidation or the start of a rally and a rebound.

In March 2020, when the index similarly reached single digits, we saw an influx of long-term buyers.

The current extreme fear may attract buyers who have been waiting for extreme oversold conditions to buy cryptocurrencies long term.

btc usd bitcoin will fall until the bulls capitulate eth usd has lost xrp ripple and ada cardano have decreased as well grafika numer 2btc usd bitcoin will fall until the bulls capitulate eth usd has lost xrp ripple and ada cardano have decreased as well grafika numer 2

In our case with Bitcoin, this could translate into a sharp acceleration of the sell-off after falling below $30K

However, we note that the amplitude of crypto market fluctuations does not resemble either a capitulation of enthusiasts or a wave of stop orders triggering. Typically, a trend reversal is preceded by a sharp increase in momentum with the eventual resignation of those who stood against the trend.

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In our case with Bitcoin, this could translate into a sharp acceleration of the sell-off after falling below $30K, all the way to the $23K or even the $20K area. It is only from this level that major long-term buyers can be expected to emerge.


Alex Kuptsikevich

Alex Kuptsikevich

Financial market professional with 16-years' experience and Senior financial analyst at FxPro. Author of daily reviews on the impact of economic events with comments regularly featured in top international and Russian media. Covers fundamental analysis, global markets, foreign exchange market, gold, oil, cryptocurrencies.

Alex Kuptsikevich is a regular contributor to both digital and print media including CNBC, Forbes, Reuters, MarketWatch, BBC and Coindesk.


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