After its rally, the crypto market continues to struggle. The market overall is struggling during the final lap of 2018, even though prices for cryptocurrencies have risen significantly since last year. There have been interesting patterns that emerged from the market crash, which saw prices remain stagnant.
The Fear & Greed Index has shown that market sentiment has gone into the extreme negative once again. The market sentiment fluctuated greatly with the prices of bitcoin and ethereum trading falling below critical support points. However, it has mostly remained negative. This time around, market sentiment has dropped low and landed in the ‘extreme fear’ territory.
Algorand Solana and More Leader Lists Of The Biggest Losing Altcoins| Algorand, Solana, And More Lead List Of Biggest Losing Altcoins
Fear is driving the crypto market
It has been a long month for the crypto market to be in fear territory. Market prices haven’t been the most favorable for the month and investors remain incredibly wary of getting into the market at such a time. However, others see this as an opportunity for buying, like MicroStrategy who bought 1,434 BTC to bring its total holdings at 122,480 BTC.
After an unusually wonderful start, the November aggregate came out neutral. As Christmas approaches, that sentiment has spilled over into December.
Market goes into extreme fear | Source: alternative.me
Yesterday the Fear & Greed Index had peaked at 29 on the chart, putting the market in the fear territory. It was a slight improvement on last week’s extreme fear, where the market remained in this territory for long periods. The chart showed that market sentiment was once again in extreme fear territory, with a 23-year low.
Low buying pressures and high selling pressures are the reasons for this index. There are currently sell-offs in several digital assets whose prices have fallen into the red. Market volatility is low, so will it be possible for the market to recover from its extreme greed this weekend?
Bitcoin and Losses
Bitcoin was making a big splash on the markets when it hit an all-time high just above $69,000 at November’s beginning. It had set off a bull run that would last a lifetime, as Ethereum was close to the $5,000 mark. However, this bull run would be brief as the downtrend began not long afterwards.
Similar Reading: Crypto Bull Cathie wood Says Ethereum is More Undervalued than Bitcoin| Crypto Bull Cathie Wood Says Ethereum Is More Undervalued Than Bitcoin
Bitcoin lost $10,000 just one day, sending it to the low $40,000s. Ethereum had, however, managed to hold on for a while and succumbed in the end.
After failing to maintain above $50,000 this week, Bitcoin now trades well below $50,000. Ethereum now trades below $4,000 which is a critical support level for the digital asset. Bitcoin is currently trading at $47141, while ethereum trades at $3826 at the time.
Source: Crypto Total Market Cap on TradingView.com| Source: Crypto Total Market Cap on TradingView.com
Featured Image from Bitcoin News. Chart from TradingView.com