Bitcoin has started the day with a negative dynamic. At press time, the largest cryptocurrency by market cap is trading at $33,715.31 (-5.52%), according to CoinMarketCap.
Chart of the USD/BTC trading pair from EXANTE
For its part, Ethereum has fallen to $1,276.49 (-6.98%), while XRP has dropped by 4.26% and is now trading at $0.289.
FxPro's team of analysts say:
"Bitcoin is falling slightly after failing to exceed $40,000 at the end of last week. The reference crypto has lost 2% of its value over the past 24 hours and is currently trading at around $34,500. It should be noted participants in the cryptocurrency market have not yet panicked, however, the fact that the currency is falling below $32,000, the area of the previous correction lows, could be a harbinger of a trend reversal.
The greed and fear index continues to fall, and during the last 24 hours it has lost another 3 points to 75, moving into the 'greed' area without the adjective 'extreme.' This is a very significant moment, as the index has remained in the 'extreme greed' area for the last few months. The RSI index on the daily charts shows a steady decline away from the overbought area.
As a result, technical indicators point to a cooling of the previously overheated market. And now the question for traders is whether there are enough market participants who consider the current levels of around $30,000 to be comfortable enough to open positions 'with discounts.' News of large funds, as well as the actions of the new US administration in terms of incentives, could be the force that could generate momentum for Bitcoin."
According to CoinMarketCap’s ranking, 9 currencies on the top 10 are in red.
As for the market cap of all currencies listed in CoinMarketCap, it stays at $969,927,073,980.
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