The BTC dropped pretty much. On Wednesday, investors are trying to find support and help the major cryptocurrency to reach stability at $31,105, but they are very likely to fail. Over the previous week, the BTC lost almost 15% - the crypto market remains under pressure.
The external background is still far from favourable. Geopolitical tensions, inflation boost in the US, tightening of the Fed’s monetary policy, an anti-coronavirus lockdown in Shanghai and Beijing – all this makes investors escape the risks. Another factor that puts pressure is the US 10-year bond yield growth.
Early in the week, it seemed like investors were forced to close their BTC positions – the total losses might have been about $1.05 billion on Monday alone. The Okex investors took the most hit. The technical picture in the BTC shows a new support area at $29,000-$30,000. If bears continue dominating, there is a chance for another plunge to $20,000. So far, this chance is pretty small but it’s still a chance.
It appears that the current situation in the BTC is that very “crypto winter” heavily discussed in the past. The BTC failed to fix above $35,000 – this is exactly where the trend transformed into a negative one. Take a look at the US stock indices that correlate with the BTC: S&P 500 lost 18% and may drop 10-20% more. It means that the possibility of the BTC declining to $20,000 is quite real.
To eliminate this negative scenario, the BTC must break and fix above $41,000.
ETH: a new downside target – $2,157
A new low in the ETH is $2,198. Today, the asset is trading at $2,395 but the mid-term channel remains descending with a possible downside target at $2,157. To cancel this scenario, the ETH must break $2,970. The fundamental background remains quite positive for the major altcoin. However, investors are now mostly focused on emotions and technical signals.