The crypto-economy has been sliding in value this week and during the last 24 hours, it has lost 2.5% dropping to $2.3 trillion. The leading crypto asset bitcoin has slid 4.8% during the last seven days and ethereum has dropped 11.7% last week. The downward spiral has cryptocurrency advocates questioning whether or not the bull run is over and if the bear market has begun.
Bears continue to eat into the crypto economy
After record high prices on November 10, the crypto asset economy has lost tremendous value and continues to decline every few days. After hitting $ 69,000 per unit on November 10, bitcoin (BTC) managed to stay above the $ 60,000 zone for six days after, and for just over two weeks, BTC managed to stay above the $ 50,000 region. After slipping below $ 50,000 on December 4, the same day, it hit a low of $ 43,972 per unit, but managed to climb back above the $ 47,000 area.
Still, bitcoin (BTC) is trading for 149% higher than it was on this day last year. However, monthly stats show bitcoin is down 26.1% and more than 30% from the all-time high. The second leading crypto asset, ethereum (ETH), is down 11.7% this week and 30-day stats show ETH has lost 17.5%. Similarly, ether is still up year-to-date, as the price per ETH is over 550% higher than this time last year. The crypto asset is under the $4K zone and currently changing hands for $3,845 per ether.
Bitcoin Falls Below 200-Day Moving Average, Analyst Suggests Further Lows To Come
Speaking to Alex Kuptsikevich, senior market analyst at Fxpro, Kuptsikevich told Bitcoin.com News that the cryptocurrency market “came under impressive pressure on Monday afternoon.” Additionally, the Crypto Fear and Greed Index has returned to extreme fear territory with a score of 28 to 21. positions, ”Kuptsikevich said.
“Bitcoin has fallen below its 200-day average, trading below $47K at the time of writing. Excluding the intraday drop on the 6th of December, these are the lowest values since early October, and bitcoin has lost a third of its value from its peak levels just over a month ago,” the analyst further added. “By and large, the highs at 69k were the starting point for pressure on the BTCUSD. Should the decline develop, it is worth paying increased attention to the 40k and 30k levels, significant round levels where Bitcoin had previously turned to the upside.”
Fxpro’s senior market analyst continued:
The whole crypto sphere is in a bear market. Their total capitalization is already more than 30% below their peaks, and attempts to consolidate beyond critical levels have failed. Last summer, investor interest in cryptocurrency returned after capitalization fell by more than half. This suggests the potential for a further 30% drop from current levels.
Huobi Group Co-Founder: ‘Bitcoin Needs to Break Through Descending Trendline’
Speaking with Du Jun, the co-founder of Huobi Group, the analyst said BTC has started to stabilize after the decline, focusing on the support of $47,000.
“According to data from Huobi Global, BTC maintained a sideways swing at noon, with the upper edge of the swing range at $ 47,500 and the lower edge at $ 46,200,” Du Jun told Bitcoin.com News . According to the K line chart at the 4-hour level, the price has started to stabilize after last night’s drop, and the current swing pivot is near the December 11 price low, this which can be seen as a test of the short term level of support.
The co-founder of Huobi Group concluded:
At the daily level, today is a slightly longer solid cross negative, with a clear downward trend in the price lows. The price is currently in weakness, stabilizing 47,000 can only make the declining trend temporary, to counterattack also need to break through the descending trendline and 50,800 block.
