Market

Bitcoin and ETH are regaining some of what they lost after the weekend’s battle

Bidding farewell to three unforgettable days, Bitcoin fell below $34,400 late last week before bouncing back yesterday.

At press time, the world’s largest cryptocurrency by market cap is trading near $36,000, up more than 1% in 24 hours. Trading volume fell more than 33% as many investors continue to assess the difficult economic conditions and sharp decline in stock markets.

The tech-heavy Nasdaq index fell 2.7% on Friday as investors continued to flee the leading stocks in recent years. The other two major indices, the Dow Jones Industrial Average and the S&P 500, fell 1.3% and 1.8%, respectively. The market decline was due to widespread concerns about interest rates, supply chain inefficiencies and the ongoing coronavirus.

Ether fell below $2,400 on Saturday before reviving closer to $2,500. The second largest cryptocurrency by market cap is up more than 2% in the last 24 hours. Most major altcoins spent Sunday in the red.

ETH/USDT. Source: TradingView

Joe DiPasquale, CEO of crypto fund BitBull Capital said:

“Markets hold their breath as investors watch as Asia opens up for signs of what’s next. If Asian markets open strongly, we can expect a pick-up in demand for cryptocurrencies, and even more so if US markets have a strong Monday.”

“Cryptocurrency is still trying to prove whether it is a digital hedge like gold moving against stocks, or a risky asset that will fail if stocks continue to tumble Monday as many have Stock indexes did on Friday. Although the most optimistic arguments for crypto investing cite long-term data showing that bitcoin is uncorrelated with other asset classes, data over the past two years has shown a correlation between bitcoin and another asset class: bitcoin and stock prices.”

Current bitcoin price status

BTC/USD. Source: TradingView

Bitcoin has rallied to nearly $36,000 but is still down 16.3% over the past week. Slowing momentum on the monthly and weekly charts has been a constant theme since December. When the long-term uptrend wanes, sellers often outperform buyers, although there is sometimes a signal.

Additionally, when the pullback (percentage of drop from high to low) becomes severe, short-term traders tend to reduce the size of their positions and oscillate around the intraday support and resistance zones.

Bitcoin is down about 48% from its all-time high of $69,000, marking a significant drop. The previous extreme drop was in July, when BTC slipped to nearly $28,000 with a 50% loss from its peak.

For now, initial support stands around $35,000-$37,000, which could stabilize the current sell-off. The Relative Strength Index (RSI) on the daily chart has been extremely oversold since May 19th.

If selling pressures accelerate this week, BTC could find stronger support around $30,000.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

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