0
0
Cryptocurrency Market Facing Bearish Trends
The cryptocurrency market is currently experiencing a challenging period, with prices plummeting across the board. According to CoinGecko, the total market cap of cryptocurrencies has fallen to $2.33 trillion, marking a 4.81% decrease over the past day. Furthermore, the Crypto Fear and Greed Index has shifted back to neutral territory for the first time since January, signaling a departure from the previously dominant greedy sentiment in 2024.
Performance of Top 100 Cryptocurrencies
On Tuesday, every coin within the top 100 rankings has shown negative performance over the past 24 hours. Unus Sed LEO (LEO) has only decreased by 0.19%, making it the top performer in this challenging environment, with its price sitting at $5.84. Following closely behind is Cronos (CRO), which has dropped by 0.05% to $0.1296. Despite these individual performances, every cryptocurrency in the top 100 is currently in the red, with SEI experiencing the most significant loss at 12.95%.
Even Bitcoin, the leading cryptocurrency, has not been immune to the market downturn, dropping below $60,000 due to over $300 million in liquidations. With a 4.19% decline in the last 24 hours and a 9.72% drop in the past week, Bitcoin’s failure to breach the $71.5K resistance point has resulted in a series of lower highs, culminating in the bearish movement observed today.
The technical analysis for Bitcoin indicates a potential death cross, with its EMA 10 and EMA 55 intersecting. This development suggests that traders may need to hold onto the asset for an extended period to see profitable returns. In the short term, Bitcoin could find support around $60,000, with the possibility of testing new lows near $52K.
Ethereum’s Downtrend Mirroring Bitcoin
As the second-largest cryptocurrency, Ethereum is following a similar downward trajectory to Bitcoin, experiencing its most substantial decline since April 13. Dropping from $3,164 to $2,966, Ethereum has recorded a 6.26% loss in the last 24 hours and an 8.18% decrease over the past week. The indicators for Ethereum reflect a bearish short-term outlook, compounded by a recent death cross and an area of significant trading volume.
While the bearish trend may lead Ethereum to break its current support level and fall to $2,500, a potential rebound could see the coin recover to $3,260, positioning it within a compression zone. Traders are closely monitoring these developments to gauge the cryptocurrency’s future movements accurately.
Global Market Trends Impacting Cryptocurrency
The downturn in the cryptocurrency market aligns with broader global market trends, with many international markets also experiencing declines. Factors such as uncertainty surrounding the US Federal Reserve’s upcoming interest rate decision, corporate earnings concerns, and anticipation of significant macroeconomic events have contributed to the overall market volatility.
Ruslan Lienkha, the chief of markets at YouHodler, emphasized the impact of adjusted expectations regarding potential rate cuts by the US Federal Reserve on financial market sentiment. While the direct impact on the crypto market remains limited, Powell’s rhetoric may instigate a risk-off sentiment, intensifying selling pressure within the cryptocurrency market.
Investors are closely monitoring the Federal Reserve’s policy decisions, with an impending interest rate decision and press conference on the horizon. Additionally, updated inflation metrics and the next US jobs report are expected to influence market sentiment significantly. Nearly 200 companies in the S&P 500 are poised to report their quarterly results this week, adding further complexity to the current market landscape.
As global markets navigate these uncertain times, the Fear and Greed Index has transitioned to a fear phase, impacting both traditional financial markets and cryptocurrencies. The evolving market dynamics underscore the interconnected nature of global economic trends and their effects on various asset classes.
Image/Photo credit: source url
