Bitcoin: The reverse side of Institutional Love

Bitcoin has suffered from the former love for it on the part of institutional investors. A significant sell-off in the stock and bond markets on Monday prevented the first cryptocurrency from returning to the growth tracks. As a result, the bearish nature is confirmed so far: it should be carefully monitored so that this situation does not become toxic for the entire cryptocurrency market.

BTCUSD sinks under the weight of traction into protective assets BTCUSD sinks under the weight of traction into protective assets

On Monday, bitcoin fluctuated widely, at some point by the start of trading in the United States, winning back the initially weak start of the day. However, the pressure on stocks at the auction in the American session, as well as the confident strengthening of the dollar, dragged cryptocurrencies with it. From intraday highs, bitcoin lost 6.3% by the end of the day, at some point dropping to $55.6K.

The bears have shown who is in control of the situation now

They have clearly demonstrated that attempts to rebound come across aggressive sales. In such circumstances, it should not be surprising that the cryptocurrency fear and greed index migrated to the territory of “fear”, losing 17 points to 33, the lowest level since October 1.

Perhaps, the next line of defense of the bulls may be the $52-53.50K area, where the previous extremes are concentrated, as well as the 61.8% support area from the September-November rally.

One can only wonder that ETHUSD continues to hold the key level of $4000 against the background of aggressive sales on BTCUSD. Apparently, the pressure on the first cryptocurrency is exerted by the institutionals, of which there are many in Bitcoin and an order of magnitude less in the Ether.

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