Over the past 24 hours, the crypto market has lost 4.2% of its capitalization, and now it is $2.27 trillion. From the peak levels reached a month ago, the volume decreased by 23%, allowing us to talk about the start of a bear market in the sector – at least, following the example of what we saw in April-July.
Capitalization of the crypto market lost 23% of the peak Capitalization of the crypto market lost 23% of the peak
The fear and greed index dropped from 29 to 24, sliding back into the zone of extreme fear.
Worryingly, the total capitalization was dragged down by altcoins this time. The first cryptocurrency lost about 3% in a day, returning to $48.3K, where the 200-day moving average lies, again touching the oversold area. The 200-day SMA on the bitcoin chart promises to be a short-term significant indicator for the market.
Bitcoin has returned to the 200-day average, Bitcoin has returned to the 200-day average
The ability to bounce off this line again will indicate the predominance of bullish sentiment and promises new attempts to climb above $50K or $60K before the end of December. A failure with a sharp movement will formally clear the field for a deeper correction at $41K or even $30K.
ETH/USD loses 6% per day and is again dangerously close to the psychologically significant level of $4,000. The latest downward momentum has pushed the main altcoin away from the 50-day moving average, and this may be a signal for further decline. The ether has clearly fallen out of the vigorous growth trend since the end of September and has lain in a prolonged consolidation.
Ethereum is fighting for the $4000 mark again Ethereum is fighting for the $4000 mark again
The decline yesterday and this morning returned the coin to the lower limit of the consolidation range. A dip below $4,000 will open a direct way down with a potential target of $3,300 or even $2,700.
The share of bitcoin in the crypto market began to grow again, reaching 40.3%. We consider the growth of this indicator in the current situation to be an additional sign of fear in the crypto market.