Price Of Bitcoin Below $36k And Price Of Ether Below $2.5k

Decentralized Autonomous Organisation - Another Addition To Our Personal Dictionaries

The cryptocurrency fear and greed index was down to 11 on Sunday and slightly up to 13 by early Monday. Crypto market capitalisation lost another 1.1% overnight to $1.61 trillion, the lowest since August.

As is often the case with prolonged sell-offs, altcoins are falling with acceleration to the first cryptocurrency, causing BTC's share gains, which already stands at 41.3% against lows of 39.3% in mid-January. Bitcoin's share of 40% seems like a turning point, twice triggering a correction in the crypto market.

Cryptocurrencies are far from support - 1

This level stood like an informal threshold that optimism about altcoins had gone too far.

However, the rise in bitcoin's share does little to help its price. We saw the sixth consecutive bearish daily candlestick on Monday morning, and the price rolled back to $35K. The bears may well be able to sell the price down to $32.5K, closing the gap of July and returning the rate to last summer's support area.

Alarmingly, the sharp reversal on Friday was not followed by any meaningful bounce. Some observers point out that this is a worrying signal, suggesting further market declines, as we have not seen a final capitulation. Without capitulation, the markets will remain with an overhang of sellers.

Cryptocurrencies are far from support - 2

The price of ether has fallen to $2400, which is less than half of its peak price in November.

Events are developing in a bearish scenario, so far broadly repeating what we saw in 2018 in terms of overall sentiment. Long-term buyers can avoid buying at prices above 30k for bitcoin and 2k for ether.

We believe long-term investors will look out for purchases in the 20-30k per bitcoin area. Whether these purchases will be at the upper or lower boundary depends, among other things, on the situation in the stock markets. The return of buyers there will support the demand for risk among institutional investors. But as long as we see only steady selling from them, it is too early to talk about buying.

Decentralized Autonomous Organisation - Another Addition To Our Personal Dictionaries

Alex Kuptsikevich

Financial market professional with 16-years' experience and Senior financial analyst at FxPro. Author of daily reviews on the impact of economic events with comments regularly featured in top international and Russian media. Covers fundamental analysis, global markets, foreign exchange market, gold, oil, cryptocurrencies.

Alex Kuptsikevich is a regular contributor to both digital and print media including CNBC, Forbes, Reuters, MarketWatch, BBC and Coindesk.