Crypto Bear Marker Trigger ‘Would Be a Capitalization Drop Under $2.38T’ – Analyst

Over the past week, the crypto asset economy’s value has fallen as many digital currencies have lost significant amounts. The crypto-economy as a whole is below the $3 trillion mark. It hovers around $2.7 trillion across 10,970 cryptocurrency. Bitcoin dominance hovers just above 40%, while ethereum commands 18.4%.

Analyst Notes: A Few Factors Could Have Contributed To the Market’s Slide

The digital currency markets have had better days. Bitcoin (BTC), as of Monday November 22, 2021, is down 9.7% over the past seven days. A single bitcoin trades for $58K per unit and has a market value of $1.11 trillion. Ethereum (ETH), which has lost 7.4% over the past week, is currently trading at less than $4,300 per ether. With a 12.3% loss, polkadot was the biggest loser of all the top ten market cap holders this week. Solana (SOL), which lost 6.7%, was the most affected. Avalanche (AVAX), which gained 41.0%, entered the top ten standings this week.

Simon Peters, Etoro’s market analyst, explained that the market’s decline could have been due to a number of factors. Simon Peters stated that Bitcoin and other crypto assets plunged precipitously last week. There are a few factors at play. The Taproot upgrade to bitcoin’s blockchain caused uncertainty among investors. Taproot, the largest upgrade to the network in four years, was intended to simplify the transactions of the crypto asset, making them more efficient and less costly. Peters said that upgrades of this nature can create uncertainty in the short-term as investors wait to see what happens to the network.”

The Etoro analyst continued to speak:

Also affecting price levels recently is the U.S. infrastructure bill. The bill, led by President Joe Biden, could see companies subjected to stricter rules around the reporting and handling of crypto assets, and this has fed into further investor uncertainty. Finally, with bitcoin and other crypto-assets having reached fresh all-time highs, there was always likely to be a measure of profit-taking from investors which then translates into price weakness. Both bitcoin and ethereum go from strength to strength, and the ups and downs of the market are a part of this story.

Alex Kuptsikevich says Capitalization Drop Under $2.38 Trillion would Trigger Bear Market

Fxpro Senior Market Analyst Alex Kuptsikevich stated in a morning market analysis that the bitcoin (BTC), markets are bearish. Kuptsikevich says that the technical picture for bitcoin is bearish.

Crypto Economy Hovers Below $3T: Analyst Says First Bear Marker 'Would Be a Capitalization Drop Under $2.38T'
ETH/USD via Bitstamp on November 22, 2021.

“After Friday’s technical rebound the first cryptocurrency encountered resistance at the weekend. It was the 50-day moving mean and the 76.4% level of the September-November rally’s retracement. Kuptsikevich said that stronger selling at this level indicates a short-term trend reverse and a setup for a deeper, longer correction.

Kuptsikevich added:

The first marker of a bear market would be a capitalisation drop under $2.38trn, which is 8% below current levels. For Bitcoin, such a level is near $55k, representing a 20% drop from the peak, a return to the highs of September, and 61.8% of the last rising momentum. An overcoming of these levels would signal a further drawdown of 20-30%.

Analyst at Huobi Group: Bitcoin’s Future Value ‘Highly Uncertain’

Huobi Group co-founder Du Jun explained that BTC has strong support at $57.500, but the “price” of BTC is uncertain.

Huobi Global data showed that BTC dropped quickly to $57,500 during the daytime, and was hampered by Huobi Group analysts. “The 4h K-line shows that three EMA lines are descending in different ranges. The slope of EMA5 is largest. This suggests that the price decline is becoming more evident. Today’s price changes were smaller and trading volume is back to normal.