Cryptocurrencies retreat and Bitcoin moves away from US$37,000 this Monday, November 13. Meanwhile, Ethereum driven by BlackRock and its request to create an exchange-traded fund (ETF) manages to remain at $2,000.
Bitcoin had managed to reach a six-month high when it managed to touch US$38,000 the previous day. However, investors’ optimism was not enough and it fell 0.4% in the last 24 hours. The market of the ten most traded cryptocurrencies is sustained with a majority of losses of up to 3.7% led by Cardano (ADA), followed by Dogecoin and Binance Coin at 1.3%.
The good moment of digital assets is resounding, as evidence the total market capitalization, which recently exceeded $1.4 trillion and is at its highest level since May 2022 in the moments before the bankruptcy of Terra and other important companies in the ecosystem.
Likewise, The Fear and Greed Index is around 77 pointsin clear territory of “greed” and at levels similar to those registered by bitcoin after reaching its all-time highs in November 2021. This reading not only usually indicates a clear buying frenzy, but also a potential correction in the making.
Cryptocurrencies: the variables that influence the market
Investors seem to take for granted that the Securities and Exchange Commission (SEC) It will approve Bitcoin ETFs and subsequently, it will do so with ETH and other cryptocurrencies that are presented. In this way, altcoins continue to consolidate the rally as investors regained their appetite for risk and are deciding to put their capital in some more volatile assets than Bitcoin.
Regarding the ETFsmost experts believe that the SEC will approve all requests simultaneously, thus avoiding giving an advantage to any of the competitors and promoting the entry of hundreds of millions of dollars into the digital asset market. However, this thesis has been refuted by some analysts, who believe that the increases are being excessive and that interest in cryptocurrencies will not only not be as great as expected, but that bitcoin may not have the dreamed end of the year. what some expect.
“Yes, the launch of these ETFs could inject hundreds of billions of dollars and expand the potential investor segment in the cryptocurrency market. But I think it’s a little early to be so optimistic right now without overcoming the most notable obstacles to the growth of this market,” said Samer Hasn, market analyst at XS.com.
Can Bitcoin reach $38,000?
Javier Molinasenior market analyst at eToro, noted that bitcoin is clearly heading towards $38,000, the first of its bullish targets.
“Although we think that the extension could culminate in the key area of $40,000, the overbought levels experienced, the feeling of euphoria that has been entered and a certain rotation experienced towards the altcoin ecosystem in search of easy profitability, mark a first symptom of possible exhaustion that can lead to a bearish consolidation with a first objective at US$35,000 which, if lost, would have the last of the valid references to maintain the dominant upward trend at US$31,400. This second level seems very unlikely to us under current conditions,” Molina added.
Source: Ambito
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