Categories: Crypto Review

Bitcoin’s move beyond $40-45K will determine further trend

The Crypto Fear and Greed Index remains at 24 for the third day, on the extreme fear territory.

However, such a low index reading this time does little to describe the dynamics of a market whose total capitalisation has been moving between $1.95 trillion and $2.00 trillion since Tuesday.

Bitcoin has gained 0.4% in the past 24 hours to $41.9K, mainly ignoring the decline in US stock indices following Wednesday’s results.

Buying on declines below $41K is not yet a cause for optimism, as a downtrend with lower highs has been underway for more than a week.

According to technical analysis, this is often followed by a pullback. But reversal patterns are not excluded when the bulls break through the downside resistance. In our case, the signal of an upside reversal would be stabilisation above $45K.

Local positive dynamics in bitcoin and ether were offset by a pullback in Cardano and a further dip in Solana within the weekly trend.

While buying sentiment is strong among market participants on the stock market decline, bulls in cryptocurrencies are also not giving up psychologically significant support levels, now at $40K for Bitcoin and $3K for Ether. A consolidation below them could be a harbinger of an acceleration in fall.

The outcome of this confrontation today could be determined by the dynamics of the stock markets, where the key indices – the Nasdaq 100 and Dow Jones 30 – have corrected to their 200-day moving averages.

The FxPro Analyst Team

The FxPro Analyst Team

Our team consists of financial market experts. Our dedicated professionals prepare reviews on the foreign exchange market situation, Crude Oil, Gold and Stock Indices. All the analysts are regularly published in the world leading economic media.

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Tags: Bitcoin

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