As a result, the crypto currency economy lost significant value in the last week. With around $2.7 trillion in 10,970 crypto currencies, the entire crypto-economy hovers below $3 trillion. Bitcoin dominance is just above the 40% region while ethereum’s market commands 18.4% of the crypto economy on Monday.
Analyst Notes a Few Possible Factors May Have Contributed to the Market’s Slide
Markets for digital currencies have had better days. Bitcoin (BTC), as of Monday November 22nd, 2021 was 9.7% lower over the previous seven days. One bitcoin can be exchanged for less than $58K and has a market capitalization of $1.11 billion at the press time. Ethereum (ETH), which has experienced a 7.4% decline over the past week, is now trading at less than $4,300 per ether. With 12.3% of all the market caps, polkadot(DOT) was the largest loser. Solana, (SOL), lost the most value this week dropping 6.7%. While avalanche(AVAX), entered the top ten standings with 41.0% gain, avalanche [AVAX] was second in the rankings.
In a note sent to Bitcoin.com News, Etoro’s market analyst Simon Peters explained that there were a few factors that may have contributed to the market’s downward drop. “Bitcoin and a host of other crypto assets fell precipitously last week, with a few possible factors in play,” Simon Peters said. “Firstly, the Taproot upgrade to the bitcoin blockchain created uncertainty in the investor community. Perhaps the most important upgrade in the past four years for the network, Taproot was meant to streamline the crypto asset’s transactions, making them faster and cheaper. Upgrades of this nature can cause short-term uncertainty as investors hold fire to see what will happen to the network,” Peters added.
According to the Etoro analyst,
The U.S. infrastructure bill has also had an impact on price levels. This bill was introduced by President Joe Biden and could result in companies being subject to tighter reporting requirements and the handling of cryptocurrency assets. Investor uncertainty has been further exacerbated. With the price of bitcoin and other cryptocurrency-assets at all time highs, it is likely that investors will continue to profit from them, which can lead to price declines. The market is always changing and bitcoin and ethereum are both growing in strength.
Alex Kuptsikevich: ‘Bear Market Would Be a Capitalization Drop Under $2.38 Trillion’
Fxpro’s senior market analyst Alex Kuptsikevich stated in a morning analysis of crypto markets that the bitcoin (BTC) market is bearish. “The technical picture for bitcoin is on the bearish side,” Kuptsikevich explained to Bitcoin.com News.
“After Friday’s technical rebound, the first cryptocurrency hit resistance at the weekend in the form of the 50-day moving average and the 76.4% retracement level from the September-November rally. Stronger selling from this level suggests a short-term trend reversal and a set-up for a deeper and longer correction,” Kuptsikevich added.
A capitalisation fall below $2.38trn would indicate a bearish market. This is 88% lower than current levels. This level for Bitcoin is close to $55k. It represents a 20% decline from the peak and a return at the September highs, as well as 61.8% in the last rising momentum. These levels could be overcome to signal further withdrawals of between 20-30%.
Huobi Group Analyst: Bitcoin’s Future Price ‘Highly Uncertain’
Du Jun, the co-founder of Huobi Group explained that BTC has “strong support at $57,500” but the “price of BTC is highly uncertain.”
“According to data from Huobi Global, BTC fell quickly to the $57,500 position during daytime and was hindered,” the Huobi Group analyst noted on Monday. “Looking at the 4h K-line, the three EMA lines are descending at different ranges, and the slope of EMA5 is the largest, implying that the downtrend of price is gradually obvious. Price changes [went] smaller today and trading volume has returned to normal levels.”
How do you feel about crypto markets this week? Are you bullish, or bearish on the crypto market? Comment below to let us know your thoughts on this topic.
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