“Basically, the price is gradually moving lower, and in the short term, it’s stuck in a $40,000 to $48,000 consolidation zone,” says Naeem Aslam, head of research at AvaTrade.
From the point of view of technical analysis, bitcoin entered into a consolidation last week that ended in correction or, what is the same, in a kind of ‘throw back’ but without a rebound, “which invalidates the technical figure that I had drawn the price, since the symmetrical triangle is not working”, explains José María Rodríguez, a technical analyst at Bolsamanía. “However, this does not mean that there are falls to the area of $36,500 and $35,000, the most important supports“, he adds.
“What traders would like to see is the price breaking above the $50,000 level, as that will only bring more interest to bitcoin,” Aslam said.
The declines come despite increased purchases by Luna Foundation Guard (LFG), the entity behind the TerraUSD stablecoin, which added 173 million bitcoins to its portfolio over the weekend through a series of purchases. LFG now has 39,897.98 bitcoins, worth approximately 1.67 billion.
Ether, the second-largest cryptocurrency by market capitalization, followed a similar pattern over the weekend, also dipping to around $3,200. Other major cryptocurrencies performed mixed. AXS and Terra’s moon token had recently dropped around 1.5% and 2%, respectively. But the popular meme token DOGE was up 5%. The negotiation was scarce.
Cryptocurrency performance of late has largely coincided with major stock markets, which have also fallen. The tech-focused Nasdaq closed Friday down more than a percentage point. The S&P 500 and the Dow Jones Industrial Average also fell as investors continued to process a series of historic events that could tip the global economy into recession.
Source: Ambito
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