Bitcoin has started the day in a negative mood. At press time, the largest cryptocurrency by market cap is trading at $41,879.09 (-1.9%), according to CoinMarketCap.
Chart of the USD/BTC trading pair from EXANTE
For its part, Ether has fallen to $3,163.11 (-3.05%), while Binance Coin has dropped by 2.95% and is now trading at $469.67.
FxPro's team of analysts say:
"The crypto market has lost 2% of its capitalization over the last day to $2 trillion. In the period from January 8 to 11, when there was a last drop below this round level, buyers became more active in the market. But, as we see, the strength of the bulls was not enough for long.
Bitcoin has lost 2% over the last day, retreating to $42,000, returning to the area of local lows before last week's rebound. Cautious sentiment prevails in the traditional financial markets on Tuesday morning, so a test of the $42,000 mark could quickly turn into a test of the $40,000 level.
On the Bitcoin chart, a reversal to the downside is becoming more clearly visible with preservation within the three-month descending channel. The RSI index on the daily charts remains in neutral territory, i.e. there is still room for further declines. The 50-day moving average is deepening below the 200-day moving average, which also highlights the transition to a downtrend.
Ethereum has dropped to $3,190 from the $3,500 area, falling under bearish pressure.
Methodical selling is clearly draining market participants, but so far there is little sign of capitulation from enthusiasts."
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 $1,990,424,200,750.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.