Cryptos at a crossroads
Bitcoin is losing 1.7% in the last 24 hours and 10.7% for the week, trading at $59.6K. Yesterday in the midst of a sell-off, and again this Wednesday morning, it found support on a pullback to $58.6K, near its 50-day moving average and near the pivot point of the late October correction.
The cryptocurrency Fear and Greed Index rolled back 19 points to 52, entering the neutral territory. In the coming days, it will probably be possible to conclude what we saw yesterday and this morning: a bullish reload or the start of a long and deep correction by the end of the week.
Yesterday, the bitcoin bulls had enough strength to hold significant levels, but a retest of the local lows does not allow us to discard the idea that the sellers' onslaught may still break the bull market's back. Market sentiment guidelines remain the same: BTCUSD fixing below $57.5K at the end of the day or week would be a significant signal that the latest uptrend will be broken. If Bitcoin continues to see strong buyer demand on declines towards $59K, it will encourage a broader range of buyers.
For now, we see cautious gains in individual second- to third-tier coins. However, overall cryptocurrency market capitalisation has declined 11% in the last seven days, giving bitcoin an increase in market share from 43.4% to 43.6% in the same time frame.
However, sentiment has changed in the main altcoin. ETHUSD remained under increased pressure for almost two days, having fallen to $4060 at writing and updating lows. The 4000 level is in sight. An intensification of selling on a failure below would no longer indicate a corrective pullback but the start of a decline. Passing under this level, Ether would find itself below its 50-day moving average and the 61.8% retracement level of the September-November rally.
This article was submitted by FxPro's Senior Market Analyst Alex Kuptsikevich.
