Today, Wednesday, the Bitcoin and the cryptocurrency market are mostly stable. Although, the majority of coins have experienced a minor drop. The market capitalization of all cryptocurrencies increased by 0.6% to $1.02 trillion. The current challenge is getting the cryptocurrency market cap to $1.10 trillion.
Furthermore, there is a long-term downside consolidation in the price of bitcoin. The price has been rising over the past few hours and is targeting $21,750. To further reduce the price, the seller searches for new participants.
According to Bloomberg Analysis, the moving average convergence divergence (MACD) indicator has flashed a warning for the price of Bitcoin. The MACD has turned negative, which some analysts interpret as a warning indicator that pressure on Bitcoin may persist.
The recent drop has also pushed bitcoin below its daily moving average (MA50). The US dollar, which hit its highest level in more than a month, is perhaps another hurdle for bitcoin. Bitcoin and the DXY Dollar Index have had a consistent negative correlation.
As a result of risk aversion on international markets brought on by worries about the Federal Reserve’s tightening monetary policy, Bitcoin saw a sell-off on Friday and dropped to a low of $20,782, losing more than 11%.
conclusion
Following the surge, the price of bitcoin has plummeted, exposing a number of fundamental flaws that were previously difficult to understand. Retail investors are not as impressed by the market as had been predicted, as evidenced by the run-up and subsequent drop to $25,000.
Over the past week, there has been an increase in the selling pressure on bitcoin. This comes after the price fell back to $21,000, sending markets into a tailspin. The loss has undoubtedly negatively impacted the attitude in the cryptocurrency market, which has now dipped deeper into the dread category on the Fear & Greed Index.
