November Crypto Market Turbulance Shakes Holders To Their Core
23 Novembre 2021 - 06:09PM
NEWSBTC
With an average 6% loss and a 10% correction in the weekly chart
for Bitcoin, Cardano (ADA), XRP, and others, the crypto market has
been trading in choppy waters for the past days. The uncertainty
has brought a change in the sentiment, as traders prepare for
further downside. Data from Arcane Research records a flipped in
the Fear and Greed Index, the indicator has quickly moved from
“Greed” to “Fear” as Bitcoin and other major cryptocurrencies in
the top 10 by market cap retested critical support levels. Bitcoin
had a particularly bad week in terms of performance as an increase
in volatility caused the price to fluctuate in a range between
$55,4000 and $60,000. On the other hand, Ethereum has showed more
strength as it has been able to quickly bounce back from its low
and into the mid area around its current levels. Related Reading |
TA: Bitcoin Holds Key Support, Why BTC Remains At Risk of Sharp
Decline As Arcane Research noted, the crypto market’s sentiment is
still far from suggesting a cycle top. Despite the downside
pressure, fundamental remains for future appreciation as most
cryptocurrencies successfully retested their monthly lows. Arcane
Research noted the following: (…) in bull markets, the Fear and
Greed Index indicate “greed” or “extreme greed” for more extended
periods with short periodical visits to the “fear” area, just like
we saw this spring. Therefore, a “fear” level is not necessarily a
signal that the current bull market is over (…). Why The Crypto
Market Could Need More Blood Before New ATHs The short term paints
a very different picture for Bitcoin and the rest of major crypto.
The U.S. Dollar Index (DXY) has been showing strength as the market
trends downwards. However, as analyst Justin Bennett pointed out,
the U.S. currency could have found a local top. This could provide
some breathing for crypto and allowed them to return to their
previous high or take another shot at critical resistance price
points. Despite the above, traders still need to maintain caution.
Although there has been a reset across the crypto market, the
derivatives sectors still show signs of being overheated with most
exchanges recording neutral funding rates that quickly turn
positive on breakouts to the upside. Related Reading | This Bitcoin
Metric Hints At Bottom, Is BTC Out The Woods? Thus, why
Jarvis Labs believes Bitcoin and the crypto market could re-entered
price discovery once funding rates turn negative, as it did in
September 2021. This could dip the Fear and Greed Index further
down the fear levels into Extreme Fear. #BTC funding rate on
Binance still hovers around neutral values. Best to wait for a few
days of negative funding regime as it did in September end before
sizing up. pic.twitter.com/AJ5bKDr29k — JarvisLabs
(@Jarvis_Labs_LLC) November 23, 2021 On that note, pseudonym trader
Rekt Capital believes Bitcoin has showed little signs of strength.
Another run into the lows could bring the whole market down with
BTC’s price. The analyst said: Let’s see how the Daily closes But
investors are only fearful at the moment. A breakdown from here
would certainly make them extremely fearful (…). Greed drives price
up. Fear drives price down. Extreme Greed precedes tops. Extreme
Fear precedes bottoms. Bitcoin probably needs to reach extremely
fearful investor sentiment before it finally bottoms and reverses.
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