This week, the crypto-economy is losing value. In 24 hours it lost 2.5% to $2.3 trillion. Bitcoin, the most popular crypto asset has fallen 4.8% over the past seven days. Ethereum dropped 11.7% in last week. Bitcoin advocates have begun to question whether the bull run has ended and if the bear markets are beginning.
Crypto Economy Continues to be Caught by Bears
After all-time prices hitting a record high on November 10, crypto assets have lost an incredible amount of their value, and continue to decline every day. BTC (bitcoin) reached $60k per unit after reaching November 10th at $69K. BTC then managed to keep above that level for six more days. BTC also managed to maintain the $55K area for just over two months. Although it fell to $50K per unit on December 4, bitcoin (BTC) has managed to rebound and climb above the $47K area.
Bitcoin (BTC), however, is still trading at 149% more than last year. But, bitcoin’s monthly statistics show that it is now down 26.1% and over 30% since its all-time peak. Second-leading crypto asset, ether (ETH), has fallen 11.7% over the last week. 30-day statistics show that ETH lost 17.5%. ETH’s value per ETH remains over 5600% higher year-to-date. The price per ether for the crypto asset currently is below $4K.
Bitcoin drops below the 200-day Moving Average. Analysts suggest that further falls are possible
Speaking with Alex Kuptsikevich, Fxpro’s senior market analyst, Kuptsikevich told Bitcoin.com News that the cryptocurrency market “came under impressive pressure on Monday afternoon.” Furthermore, the Crypto Fear and Greed Index returned to the extreme fear territory from a score of 28 to 21. “It is not easy to pinpoint the new wave of pressure trigger, but it intensified and widened after the two largest cryptocurrencies gave up their key positions,” Kuptsikevich said.
“Bitcoin has fallen below its 200-day average, trading below $47K at the time of writing. Excluding the intraday drop on the 6th of December, these are the lowest values since early October, and bitcoin has lost a third of its value from its peak levels just over a month ago,” the analyst further added. “By and large, the highs at 69k were the starting point for pressure on the BTCUSD. Should the decline develop, it is worth paying increased attention to the 40k and 30k levels, significant round levels where Bitcoin had previously turned to the upside.”
Fxpro’s senior market analyst continued:
The entire crypto market is experiencing a bear market. Their combined capitalization is now more than 30% less than their peak levels, and efforts to consolidate have failed. After capitalisation dropped by over half, crypto investor interest rebounded last summer. The potential for another 30% drop in capitalisation from the current level is evident.
Huobi Group Co-Founder: ‘Bitcoin Needs to Break Through Descending Trendline’
Du Jun, co-founder and CEO of Huobi Group said that BTC had stabilized after its decline. He emphasized the importance of the $47,000 support.
“According to data from Huobi Global, BTC maintained a sideways oscillation at midday, with the upper edge of the oscillation range at $47,500 and the lower edge at $46,200,” Du Jun told Bitcoin.com News. “From the 4-hour level K-line chart, the price began to stabilize after last night’s decline, and the pivot of the current oscillation is near the price low of December 11, which can be seen as a test of the short-term support level.”
Huobi Group co-founder concluded the following:
Today’s daily price level shows a solid cross-negative that is slightly longer than yesterday, and a clear downtrend in low prices. The current price trend is in weakness. Stabilizing at 47,000 will only temporarily reverse the downward trend, and to counterattack, you need to breach the 50,800 block and the descending trendline.
What do you think about Kuptsikevich’s assessment of the crypto economy and saying the sphere is in a bear market? Are you a believer that the crypto market is currently in a bearish market? Please comment below to let us know your thoughts on this topic.
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