The Crypto market cap has increased marginally by 0.7% in the last seven days, displaying a plunge since Thursday. However, the crypto rebound after the previous week’s crash dries up. On Thursday, the crypto Fear and Greed Index was around 50 before declining to 48 while writing this content. As it hovers in the mid-range, it doesn’t depict overbought gestures, confirming the possibilities of further downswings.
Meanwhile, BTC failed to hold above the $48,000 level. Price pressure on the leading crypto at its current value will catalyze downtrends. That will see selling magnifying at the lower zones. In April, these levels were around $60,000. In May, most buyers submitted, failing to take the asset beyond $55,000. Meanwhile, in September, Bitcoin did not stabilize above $50,000.
The near-term pressures come from the quarterly options and futures expirations, the highest concentration being around $50,000. For now, bears appear to defend this psychological area fiercely. Near-term investors need to focus on $45,000. A plunge beneath this zone might catalyze BTC surrender – this fire can spread throughout the whole crypto market within no time.
Keep in mind that BTC pressure isn’t limited to speculative or technical actors only. S&P 500 warned Salvadorian authorities about an immediate negative effect on its credit rating. Keep in mind that El Salvador implemented the Bitcoin law last week. S&P stated that the actions might deprive the nation of IMF aid applications and heighten banking and monetary systems vulnerabilities.
Such updates appear to worsen crypto perception by institutional investors that have supported Bitcoin since this year started. Keep in mind that any development in Bitcoin will affect the overall cryptocurrency market.
For Ethereum, $3600 was the short-term turning point. The rise attracted sellers that have controlled the ETH market, dragging the price low towards $3,450. For now, market players need to focus on $3,000. An extended fall by the leading alt might see the altcoin market turning red.
If Bitcoin falls under $45,000 and ETH below $3,000, they will reinforce the prevailing condition from 2018. That was when a failed trial to revive historic highs faced a cryptocurrency winter, resulting in a bloodbath in the altcoin market. Cryptocurrencies that depend on interest alone will hardly survive.
What are your thoughts about the current crypto market outlook? You can comment below.
James Thompson