Why Bitcoin’s Fall Under $48K Could Open the Way to $41K or $30K

The crypto market has lost 4.2% of its capitalisation in the past 24 hours and now stands at $2.27 trillion. From the peak levels reached a month ago, capitalisation has dropped by 23%, allowing us to speak of the start of a bear market for the sector, at least like the one we saw in April-July.

The cryptocurrency fear and greed index dropped from 29 to 24, slipping into the extreme fear territory.

Alarmingly, the overall capitalisation this time was pulled down by altcoins Altcoins Altcoins can be defined simply as any cryptocurrency that isn’t Bitcoin. Originally, Bitcoin was the first and only cryptocurrency, though this number has expanded to now include countless cryptos launched. Unlike Bitcoin, many altcoins have met varying levels of success, with the vast majority effectively ceasing to exist as tradable entities. Several however, have risen to rival Bitcoin itself.The most common altcoins include Ether, XRP, Stellar, Monero, Ada, and Dash, among others and are see Altcoins can be defined simply as any cryptocurrency that isn’t Bitcoin. Originally, Bitcoin was the first and only cryptocurrency, though this number has expanded to now include countless cryptos launched. Unlike Bitcoin, many altcoins have met varying levels of success, with the vast majority effectively ceasing to exist as tradable entities. Several however, have risen to rival Bitcoin itself.The most common altcoins include Ether, XRP, Stellar, Monero, Ada, and Dash, among others and are see Read this Term. The first cryptocurrency lost around 3% over the day, returning to $48.3, where the 200-day moving average runs and touched the oversold area again.

A significant short-term indicator for the market promises to be the 200-day average for Bitcoin Bitcoin Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger n Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger n Read this Term. An ability to bounce back above that line would indicate bullish sentiment prevails and promises new attempts to climb above $50K or $60K this month.

A sharp fall would formally clear the way for a deeper correction to $41K or even $30K.

ETHUSD has been losing 6% over the last 24 hours and is dangerously close to the psychologically significant $4000 level. The latest momentum of the decline pushed the first altcoin away from the 50-day moving average, and a deeper correction may follow.

Ether fell out of the bullish uptrend from the end of September and went into a prolonged consolidation.

The declines yesterday and this morning brought the coin back to the lower end of the consolidation range, and a dip under $4000 would open a straight road down with a potential target at $3300 or further to $2700.

Bitcoin’s share of the crypto market has started to rise again, reaching 40.3%. We see this growth in a falling market as an additional sign of fear of the crypto market.

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