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The cryptocurrency market was healing its wounds over the weekend as investors tried to gradually raise battered altcoins. However, most tokens, including Bitcoin and Ethereum, continued to bleed.
As many as six of the top 10 digital tokens were trading down at 9:00 am ET. Terra and Polkadot posted moderate gains, while Cardano lost 6%.
The capitalization of the global cryptocurrency market has declined by about a percentage point to $ 2.25 trillion from the previous day. However, the total volume of the cryptocurrency market fell by as much as 8 percent to $ 70.34 billion.
According to Edul Patel, CEO and co-founder of Mudrex, the largest cryptocurrency by market capitalization, Bitcoin, faced a small sell-off and hovered around the $ 48,000 mark, while ETH also fell lower. “If Ethereum falls below the decisive support at $ 4,000, we could see a serious drop in altcoins,” he added.
Sentiment has improved further this week, however, as the Mayor of Miami, who receives his salary in Bitcoin, also announced that he will take part of his 401k pension fund in BTC. This can have big implications because when political leaders demonstrate their faith in Bitcoin, it is likely to be accepted as an asset class in society.
Nothing significant has happened for Bitcoin over the past week as prices stubbornly continued their intermediate downtrend and a small breakout attempt to $ 51,600 was unsuccessful last Tuesday.
$ 47,500 has been tested multiple times, but chances are good that Bitcoin will break that support and fall below. Moving averages and momentum oscillators such as the 50- and 100-period ROC on the 4-hour chart are not yet indicative of a return in strength.
Hence, traders can keep their stop loss at $ 51,600 and keep short for a few more days. Bitcoin demand will return only if the downtrend line is broken above $ 51,600.
Posted by Newt Salamander, Analyst at Freedman Club Crypto News
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