crypto dead: Cryptocurrency Investors May Start Spending Digital Assets

Bitcoin has been losing 3.7% since the start of the day on Monday November 22, retracing back to $ 57.4K. At the same time, the total cryptocurrency market capitalization, according to the CoinMarketCap estimate, is also declining. The loss per day was 2.8%, which brought the volume to $ 2.57 trillion.

Illustration: coinstelegram.com

“Thanks to the neutral dynamics on Saturday and Sunday, the cryptocurrency index of fear and greed has stabilized exactly in the middle of the scale, that is, at around 50,” Aleksandr Kuptsikevich, a leading analyst at the FxPro investment company , told EADaily.

According to the expert, the technical picture of bitcoin is now on the side of the "bears".

“After a rebound on Friday, the rate of the first cryptocurrency met resistance in the form of a 50-day moving average and a 76.4 percent correction level from the September-November rally,” the expert specifies.

According to Kuptsikevich, the strengthening of sales at this mark indicates a short-term trend change and the mood for a deeper and more protracted correction.

“The first sign of the onset of the bear market will be a capitalization failure under $ 2.38 trillion, which is 8% below current levels,” predicts FxPro. - For Bitcoin, the price of $ 55 thousand looks like a similar key zone. If the chart reaches it, it will record a 20% drop from the peak, a decline to 61.8% of the level of the last growth amplitude,

 as well as a return to the area of ​​September highs. "

The analyst warns that overcoming these levels from top to bottom may signal a further drawdown by 20-30%.

“The situation with a strengthening dollar and tightening monetary policy against the backdrop of countries returning to normal life after the pandemic carry serious risks,” Kuptsikevich believes. - Some of the cryptocurrency investors can take profits from the rise in prices for cryptocurrencies and start spending it. The acceleration in inflation, as well as the depletion of the coronavirus stimulus, coupled with the cryptocurrency market slipping in recent weeks, is prompting consumers to ramp up spending now before prices rise further. ”

According to the analyst, all this can form a trend for the sale of currencies among small private investors, of which there are quite a few on the market now.