• Wed. Jun 22nd, 2022

A bullish sign for cryptocurrencies after the fall and reversal?

ByHazel R. Lang

Jun 20, 2022

Cryptocurrencies continue to fall in stages. They made a strong bearish reversal in November last year that continued through January, followed by a retracement period in March. In April, the decline resumed while for most of May digital coins consolidated again.

But bearish momentum resumed earlier this month and on Saturday Bitcoin (BTC) fell to around $17,749 and Ethereum (ETH) fell below $900 as the crypto market sold off. was accelerating. The two most popular crypto coins were down more than 35% at one point last week as they both breached the token price barriers of $20,000 and $1,000 respectively.

Bitcoin Daily Chart – No Follow-Up to Yesterday’s Reversal

BTC holding over $20,000 after the drop

This is the latest sign of turmoil in the crypto industry amid broader financial market turmoil. Investors are selling riskier assets as central banks continue to raise interest rates under the guise of fighting rising inflation. Although this does not work as prices continue to rise, it only sends economies into recession. We are now hearing calls for crypto regulation due to volatility, which still lacks reasoning.

On Friday, US Treasury Secretary Janet Yellen said the US Congress must take action regarding the regulation of digital assets. Besides her, Bill Gates also added that the crypto market is based on the “biggest fool” theory, which again is not true. It is the foundation of a decentralized financial market where people can lend and borrow from each other, without the need for intermediary banks, and reap the benefits themselves.

But, the was on the cryptos continues and the pressure remains generally bearish. Yesterday’s reversal in the crypto market does not continue today, so buyers still look weak and uncertain. However, let’s wait until the end of the day today and see if they can regain the bullish momentum.

BTC/USD


Source link