The crypto market has taken a step up but has not yet fly

Market picture

Bitcoin has added 10% in the past seven days, trading at $21.7K. Ethereum jumped 10.3% to $1730. Top-10 altcoins add between 1.5% (Polkadot) and 9% (Solana).

Total cryptocurrency market capitalisation, according to CoinMarketCap, rose 7.9% for the week to $1.06 trillion. The Cryptocurrency Fear and Greed Index is at 25 starting the week, near the upper end of the “extreme fear” area.

Bitcoin showed substantial gains on Friday and avoided correction sentiment over the weekend. As a result, the coin is again testing the 50-day moving average, where fluctuations have become very small. 

The market has removed excessive oversold from the BTCUSD but has yet to make a decisive move upwards. A strong move above the 50-day average could end the bear market.

Even so, it is unlikely that current buyers can expect quick multiples gains. A prolonged bear market (like the one we are now in) is usually followed by a protracted period of cautious and uneven price growth. Moreover, the bulls have not yet brought the price back above the 200-week average, which is now near $23.2K.

News background

MicroStrategy has applied to sell up to $500 million worth of shares to buy bitcoins.

US lawmakers and regulators are discussing strict measures on bitcoin mining because of its large carbon footprint. This is according to a White House Office of Science and Technology Policy report.

US SEC head Gary Gensler said cryptocurrencies should be considered securities. Still, the agency is willing to share the “reins of regulation” of the industry with the Commodity Futures Trading Commission (CFTC).

British Prime Minister Liz Truss said the new government aims to make the UK “the world’s dominant crypto hub”.

The FxPro Analyst Team