Bitcoin price continues to struggle after sell-off, pullback may end this weekend
Bitcoin price continues to struggle following Monday’s sell-off, although the cryptocurrency appears to be stabilizing above the $40,000 support at press time. Many analysts expect the drop to come to an end by the end of this week.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price steady as it holds support above $40,000
Before the flash crash earlier this month, funding rates were pretty high, which tends to imply an influx of longs levering up. However, the market was not positioned as aggressively this time around, leading to a slightly brighter outcome.
Two days ago, as AZCoin News reported, Bitcoin, Ethereum, and crypto markets have plummeted, and today it received another blow as in just the last 24 hours, Bitcoin has dropped 6%, now trading translates at $40,808.
Traders and hodlers still sit in a very fearful speculative position on Bitcoin, and the normal buy the dip crowd is more timid than usual. Typically, the extreme FUD levels are less perilous times to add to BTC and altcoin positions.
The Fear and Greed Index indicates that the crypto market goes through an investor fear phase with a three-month low score of 21/100. This low suggests a shift towards extreme market fear, and BTC could be undervalued. At the same time, a higher number represents extreme market greed, and the price could be inflated above true value, foreshadowing a future decline.
Following Bitcoin’s drop to the $40,000 region today, the index revealed a score of 21. The last time it printed such a low number was almost three months ago, on July 26.
Crypto Fear & Greed Index as of Sep 22 | Source: Alternative.me
Ethereum failed to hold the critical $2,800 level, as AZCoin News mentioned. ETH is valued at 2,890, down 4% over the past 24 hours. This is the first time it has dropped below the $3,000 mark since August 6.
Major altcoins were also beaten. Solana, the sixth-largest cryptocurrency by market capitalization, is trading at $127, down 5% on the day and nearly 50% from the all-time high of $189 it hit just two weeks ago. Virtually every other altcoin was in the red too. The entire crypto market is wobbling: over $1.2 billion worth of crypto futures got liquidated in one day.
The overall cryptocurrency market cap now stands at $1.782 trillion, and Bitcoin Dominance is 43%. Over the long term, however, Bitcoin’s uptrend remains intact. The uptrend still holds BTC, with monthly indicators pointing higher, putting short-term volatility into a bullish context.
- Bitcoin Price Needs To Hold Above $40,000, And $2,800 Is An Important Level For ETH In Short Term
- The Supply Of Altcoins Will Keep Growing Until The Crypto Bubble Pops, Prices Will Implode Almost Overnight