The BTC dropped pretty much. On Wednesday, investors are trying to find support and help the major cryptocurrency to reach stability at $31,105, but they are very likely to fail. Over the previous week, the BTC lost almost 15% - the crypto market remains under pressure.
The external background is still far from favourable. Geopolitical tensions, inflation boost in the US, tightening of the Fed’s monetary policy, an anti-coronavirus lockdown in Shanghai and Beijing – all this makes investors escape the risks. Another factor that puts pressure is the US 10-year bond yield growth.
Early in the week, it seemed like investors were forced to close their BTC positions – the total losses might have been about $1.05 billion on Monday alone. The Okex investors took the most hit. The technical picture in the BTC shows a new support area at $29,000-$30,000. If bears continue dominating, there is a chance for another plunge to $20,000. So far, this chance is pretty small but it’s still a chance.
It appears that the current situation in the BTC is that very “crypto winter” heavily discussed in the past. The BTC failed to fix above $35,000 – this is exactly where the trend transformed into a negative one. Take a look at the US stock indices that correlate with the BTC: S&P 500 lost 18% and may drop 10-20% more. It means that the possibility of the BTC declining to $20,000 is quite real.
To eliminate this negative scenario, the BTC must break and fix above $41,000.
A new low in the ETH is $2,198. Today, the asset is trading at $2,395 but the mid-term channel remains descending with a possible downside target at $2,157. To cancel this scenario, the ETH must break $2,970. The fundamental background remains quite positive for the major altcoin. However, investors are now mostly focused on emotions and technical signals.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.