Bitcoin falls 4% and is around $29,000. Ethereum for its part, falls to 5%. The cryptocurrency market is trading down as much as 9% led by Solana, Cardano and Ethereum.
The crypto sector is trying unsuccessfully to recover positions this week. The stablecoin crash and the collapse of Terra caused a flight of investors in the industry. After the so-called ‘death spiral’, “investors will be eager to see if the tokens can maintain their price levels for the next few days at least,” says Simon Peters, expert crypto asset analyst at eToro.
“The last time the market faced adversity like this was the 2018 crash. But the composition of the market is very different today than it was four years ago. Institutional investors now represent a much larger proportion of the market, which has already had an observable impact not only on prices, but also on the way the market moves”, adds this expert.
Be that as it may, the cryptocurrency sector is generating increasing concern among the upper echelons. The president of the American Securities and Exchange Commission (SEC), Gary Gensler, has reiterated his intention that he has already shown on other occasions to regulate cryptocurrency exchanges and lending platforms.
“There is a need to provide greater investor protection to these crypto markets. Investors buy, sell and lend $100 billion worth of crypto assets a day“, adds Gensler. For her part, the US Treasury Secretary, Janet Yellen, reinstalled Congress to approve a new regulatory framework for the sector as soon as possible. Experts suggest that in a matter of weeks we could attend to new regulations.
What can happen to the price?
“From a technical point of view, we are in a very delicate moment for BTC. With the $29,000-$30,000 zone under pressure, the existing high pessimism seems to point the way towards the key reference of $20,000”, said Javier Molina, spokesman for eToro in Spain.
“Although prices have bounced back to $25,000, the damage is done and there is a high risk of going to visit that previous benchmark. However, right now it seems that the 30,000 dollars will be sold at a high price and, with bearish and bullish leveraged positions liquidated, investors are waiting for references that move prices”, added the expert.
“At the top, $35,000 marks the first resistance to overcome. At the bottom, this week’s lows should not be lost and, in case of attacking the resistance zone, we must watch the volume that, again, returns to minimum levels this past weekend”, Molina concluded.
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Source: Ambito
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