The cryptoasset economy has dropped in value over the past week as a large number of digital currencies dumped significant amounts. The entire crypto economy is below the $ 3 trillion mark, hovering around $ 2.7 trillion in 10,970 cryptocurrencies. Bitcoin's dominance is just above the 40% region, while the ethereum market controls 18.4% of the crypto economy on Monday.
The analyst observes some possible factors that may have contributed to the market downturn
The digital currency markets have seen better days and on Monday, November 22, 2021, bitcoin (BTC) is down 9.7% over the last seven days. At press time, a single bitcoin is changing hands for just over $ 58K per unit zone and the asset has a market valuation of around $ 1.11 trillion. Ethereum (ETH) has lost 7.4% last week and is currently trading for less than $ 4,300 for ether. The biggest loser of the top ten market caps this week was polkadot (DOT) with a loss of 12.3%. Solana (SOL) lost the least amount of value falling 6.7% and Avalanche (AVAX) entered the top ten positions gaining 41.0% this week.
In a note sent to Bitcoin.com News, Etoro market analyst Simon Peters explained that there were some factors that may have contributed to the market crash. "Bitcoin and a number of other crypto assets fell precipitously last week, with some possible factors at play," said Simon Peters. โFirst, Taproot's upgrade to the bitcoin blockchain created uncertainty in the investment community. Perhaps the most important update in the last four years for the network, Taproot was aimed at streamlining crypto asset transactions, making them faster and cheaper. Updates of this nature can cause uncertainty in the short term, as investors stand firm to see what will happen to the network, โPeters added.
The Etoro analyst continued:
Recently, the US infrastructure bill has also affected price levels.The bill, led by President Joe Biden, could make companies subject to stricter rules on reporting and handling. of crypto assets, and this has generated greater uncertainty for investors. Finally, with bitcoin and other crypto assets reaching new all-time highs, there is always likely to be a measure of profit-taking by investors that then translates into price weakness. Both bitcoin and ethereum are going from strength to strength, and the ups and downs of the market are part of this story.
Alex Kuptsikevich: 'The bear market would be a capitalization drop below $ 2.38 trillion'
Alex Kuptsikevich, a senior market analyst at Fxpro, detailed in a morning analysis of the cryptocurrency market that bitcoin (BTC) markets are bearish. "The technical picture for bitcoin is bearish," Kuptsikevich explained to Bitcoin.com News.
โAfter Friday's technical bounce, the first cryptocurrency hit resistance over the weekend in the form of the 50-day moving average and the 76.4% retracement level from the September-November rally. A stronger sell from this level suggests a short-term trend reversal and a setup for a deeper and longer correction, โKuptsikevich added.
Kuptsikevich further stated:
The first marker of a bear market would be a capitalization drop below $ 2.38 trillion, which is 8% below current levels. For Bitcoin, said level is close to $ 55k, representing a 20% drop from the peak, a return to September highs, and 61.8% from the last upward momentum. Exceeding these levels would indicate a further reduction of 20-30%.
Huobi Group Analyst: Future Bitcoin Price 'Highly Uncertain'
Du Jun, co-founder of Huobi Group explained that BTC has a "strong support at $ 57,500", but the "price of BTC it's very uncertain. "
โAccording to data from Huobi Global, BTC It quickly fell to the $ 57,500 position during the day and was hampered, โthe Huobi Group analyst noted on Monday. โLooking at the 4-hour K-line, the three EMA lines are descending in different ranges, and the slope of EMA5 is the largest, which implies that the downtrend of the price is gradually obvious. Price changes [went] smaller today and trading volume has returned to normal levels. "
What do you think about the outlook for the cryptocurrency market this week? Do you think the market looks bearish or do you think the markets are still bullish? Let us know what you think on this topic in the comment section below.
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