Technical Analysis

Bitcoin loses volatility again | Forexlive

Bitcoin Market picture

Bitcoin once
again failed to get on the upside track, and its exchange rate fell to $17K,
around which it has been languishing since the beginning of the month. The
reason for the decline was pressure in the markets due to relatively good
economic data, which increased speculation that the Fed would have to go
further in raising rates than previously expected.

We note that
the crypto market recently had very subdued volatility compared to stocks,
having missed much of the rally of the last two months but also not feeling the
kind of pressure that stocks have been under since early December.

cryptocurrency fear and greed index down 1 point by Tuesday, to 25, and had
moved into “extreme fear” status. The total capitalisation of the
crypto market fell 1.9% to $853bn.

suppressed volatility in the cryptocurrency market is causing market
participants to move stop orders closer to the current price. A drop below $16K
(-6%) could devastate speculators’ positions, delaying a potential market
recovery for many more months. On the other hand, a rise above $18K (+6%) could
open a direct track to $21K.

professional market makers becoming less active towards the end of the year, it
will become increasingly easy to swing the price in either direction (or even
in both directions).

Bitcoin News background

According to
CoinShares, investments in crypto funds fell by $11m last week after an outflow
of $23m the week before. Bitcoin investments rose by $11m, and Ethereum fell by
$4m. Investments in funds that allow shorts on bitcoin fell by $11m. Trading
volume was $753m, compared to an average of $2bn a year ago, suggesting low
investor engagement, CoinShares noted.

broker Genesis Global Capital has reached $1.8bn in debt and is likely to
continue to grow, CoinDesk reported. Messari estimates that the platform needs
to raise at least $500m to avoid liquidation.

Intelligence senior commodities strategist Mike McGlone believes that
cryptocurrencies are now going through their last phase before hitting rock
bottom. However, he says it will be tough for investors and companies to
survive this phase.

A Chinese
court has ruled that non-exchangeable tokens (NFTs) are virtual property that
should be protected by law.

This article was written by FxPro’s Senior Market Analyst Alex

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button