Bitcoin has started the day with a negative dynamic. At press time, the largest cryptocurrency by market cap is trading at $42,472.76 (-1.28%), according to CoinMarketCap.
Chart of the USD/BTC trading pair from EXANTE
For its part, Ether has fallen to $2,951.69 (-3.22%), while Tether has increased by 0.02% and is now trading at $1.
FxPro's team of analysts say:
"The Bitcoin price has briefly fallen back below $40,000 this morning, rewriting Tuesday's local lows. However, with the start of active trading in Asia, the asset has recovered again. Today, Wednesday, the crypto price has stabilized around $42,000, marking a 10% drop over the past seven days. Leading altcoins have lost between 15% and 20% over the same period.
Interestingly, the waves of buying and selling in Bitcoins are closely related to the dynamics of the S&P 500. Unlike the latter, we see new lower lows for cryptos.
It seems to be a matter of technical analysis. A decline on the BTC/USD chart below the 200-day and 50-day moving average increases the bearish pressure. At the same time, the crypto market still does not look oversold. The RSI on the daily charts has dropped to 37 points. We should not forget buyers previously 'came in' on dips below 30. The greed and fear index yesterday fell to the 'extreme fear' area at 21 points.
As for the rest of the news backdrop, cryptos are now in the spotlight. For example, according to Glassnode, over the past 6.5 months, miners have increased their balances by 14,000 BTC. The Bitcoin hashrate has also managed to recover after the expulsion of miners from China: it has returned to 139 EH/s.
Major companies continue to join the crypto craze. For instance, Burger King plans to launch NFTs of entertainment stars, and Brazilian bank BTG Pactual has announced the opening of a platform for BTC and ETH transactions. Meanwhile, PayPal's new app already offers cryptocurrency transactions."
According to CoinMarketCap’s ranking, 6 currencies on the top 10 are in red.
As for the market cap of all currencies listed in CoinMarketCap, it stays at $1,871,104,211,786.
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