Ethereum, meanwhile, performing similarly, is down 6.1% to $2,827 on March 18 lows. Of the ten cryptocurrencies with the highest market capitalization, all register losses of up to 8.8% thanks to Dogecoin. Terra, in turn, loses 7.8%.
Dogecoin’s decline comes in tandem with the decline in Tesla shares on Wall Street. The papers of the company of Elon Musk fell up to 12% after the announcement of the purchase of Twitter. The cryptocurrency of the puppy is closely associated with the figure of Musk, therefore there was a correlation in its price.
Bitcoin (BTC) is facing a rare chart phenomenon that has historically led to price drops of 50%, new data shows. In a tweet on April 25, the popular Nunya Bizniz account noted a new warning sign of two key moving averages in the BTC/USD pair.
For the third time in its history, the 20 and 50 week moving averages of bitcoin have started to slope down. While that may seem harmless at first glance, the result of the first two events – in late 2014 and late 2018 – was that the BTC/USD pair lost more than 50%.
They both occurred at similar points in Bitcoin’s halving cycles, and although it was slightly early, it is now almost as long since the 2018 crash, which bottomed out at $3,100.”I think this chart draws parallels valid,” macro investor Tuur Demeester commented on the findings.
“If bitcoin couldn’t capitulate this time and hold above $35,000, that would be an incredibly bullish sign. However, my base case, given how weak global markets look, is a slide to the downside and 3-6 months of price recovery.”
As Cointelegraph reported, a consensus continues to form on a prolonged period of price weakness for bitcoin, which should come in line with a correction in strongly correlated global stock markets. The strength of the US dollar in the face of the Federal Reserve’s anti-inflationary maneuvers is also in the spotlight as a precautionary warning signal for those who forecast a shock event after two years of liquidity printing.
More news with cryptocurrencies
Vayo Coin: A Suspected Crypto Ponzi Scheme, Already Owing $44M
Metaverses and NFT Gaming Aim to Be the Crypto Trend in 2022
Cryptocurrency cards: an emerging market that aspires to reach a million users in six months
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
