Bitcoin is trading in a range of 1% with no pronounced dynamics at $60K, losing 0.5% since the beginning of the day, but higher by 0.5% to the levels 24 hours ago. The capitalization of the crypto market for the day increased by 1% to 2.62 trillion, adding at the expense of altcoins.
Bitcoin is Testing a 50-day moving average Bitcoin is Testing a 50-day moving Average
The cryptocurrency fear and greed index added 2 points to 54, remaining in neutral territory. Such a change of mood in September and May contributed to a protracted, more than a month, drawdown of the cryptocurrency market. On the other hand, despite the depth of the correction, this year the market remained within the framework of a long-term bullish trend.
In 2018, the onset of crypto-winter could be stated by the fall of BTC/USD and ETH/USD below their 200-day averages. Now they are located at $48K and $3.8K, which is 20% and 10% lower than the current levels, respectively. Above these levels, it makes sense to talk only about corrections within the framework of a growing trend.
These indicators remain relevant even now. A sharp and large-volume drop under these lines can be considered the beginning of crypto-winter.
If we look more locally, then the latest consolidation of the cryptocurrency market after the momentum of decline is not the best sign. We pay attention to the cautious approach of bulls, who are not in a hurry to buy and are waiting for clearer signals for purchases.
The graphic picture is very disturbing at the moment: bitcoin is drawing the fifth consecutive daily candle of decline, and each intraday low is lower than the previous one.
Ether manages to push off from $4000 Ether manages to push off from $4000
From the technical analysis side, bitcoin continues to run around its 50-day moving average on daily charts, which has been taking on the role of a trend indicator for several years now. Failure and consolidation below this line (today it passes through $59.4K) risks giving rise to even greater capitulation of buyers who may rush to fix profits after growth in October.
The picture on the air is a little more optimistic. By the end of the day yesterday, ETH/USD found the support of buyers who kept it above the 4000 level. This level of former resistance now serves as a reliable support for traders relying on technical analysis.
However, a wider range of investors will probably prefer to see reliable signs of price growth and will not rush to buy near an important line. Bulls and bears now clearly understand that opponents can keep plans for a new attack near important levels.