The crypto economy has lost value this week, losing 2.5% to $2.3 trillion in the last 24 hours. Leading crypto asset Bitcoin is down 4.8% in the last seven days and Ethereum is down 11.7% last week. The downward spiral has cryptocurrency proponents questioning whether or not the bull run is over and whether the bear market has begun. Bears Continue to Scratch the Crypto Economy Down After hitting all-time highs on November 10th, the crypto asset economy has lost tremendous value and continues to decline every few days. After hitting $69,000 per unit on November 10, Bitcoin...
The crypto economy has lost value this week, losing 2.5% to $2.3 trillion in the last 24 hours. Leading crypto asset Bitcoin is down 4.8% in the last seven days and Ethereum is down 11.7% last week. The downward spiral has cryptocurrency proponents questioning whether or not the bull run is over and whether the bear market has begun.
After hitting all-time highs on November 10th, the crypto asset economy has lost tremendous value and continues to decline every few days. After reaching $69,000 per unit on November 10th, Bitcoin (BTC) managed to stay above the $60,000 zone for six days, and for just over two weeks, BTC managed to stay above the $50,000 region. After falling below $50,000 on December 4, it hit a low of $43,972 per unit on the same day but was able to bounce back above the $47,000 zone.
Still, Bitcoin (BTC) is trading 149% higher than on this day last year. However, monthly statistics show that Bitcoin is down 26.1% and more than 30% below its all-time high. The second most important crypto asset, Ethereum (ETH), is down 11.7% this week and the 30-day statistics show ETH lost 17.5%. Ether is also still relevant since the beginning of the year, as the price per ETH is over 550% higher than this time last year. The crypto asset is below the $4,000 zone and is currently changing hands for $3,845 per Ether.
Speaking to Fxpro senior market analyst Alex Kuptsikevich, Kuptsikevich told Bitcoin.com News that the cryptocurrency market “came under impressive pressure on Monday afternoon.” Besides, that is Crypto Fear and Greed Index from 28 to 21 returned to the extreme fear range. “It is not easy to determine the new pressure wave, but it has intensified and expanded after the two largest cryptocurrencies gave up their key positions,” Kuptsikevich said.
"Bitcoin has fallen below its 200-day moving average, trading below $47,000 at the time of writing. Excluding the intraday decline on December 6, these are the lowest levels since early October, and Bitcoin has lost a third of its value from its peak just over a month ago," the analyst further added. "Broadly speaking, the highs at 69k were the starting point for the pressure on BTCUSD. If the decline develops, it is worth paying more attention to the 40,000 and 30,000 levels, key round levels at which Bitcoin had previously turned higher."
Fxpro’s senior market analyst continued:
The entire cryptosphere is in a bear market. Their total capitalization is already more than 30% lower than their highs and attempts to consolidate above critical levels have failed. Last summer, interest from cryptocurrency investors returned after capitalization fell by more than half. This suggests a potential for a further 30% decline from current levels.
Speaking to Du Jun, co-founder of Huobi Group, the analyst said BTC has started to stabilize after the decline and is focusing on the USD 47,000 support.
“According to data from Huobi Global, BTC maintained a sideways swing at midday, with the upper edge of the oscillation area at $47,500 and the lower edge at $46,200," Du Jun told Bitcoin.com News. "Based on the 4-hour level K-line chart, the price began to stabilize after last night's decline, and the pivot of the current oscillation is near the December 11 price low, which can be viewed as a short-term test Support level.”
The Huobi Group co-founder concluded:
At daily level today there is a slightly longer solid cross negative with a clear downward trend at the price lows. The price is currently in weakness, a stabilization of 47,000 can only make the bearish trend temporary, to counterattack, the descending trend line and the 50,800 block must also be broken.
What do you think of Kuptsikevich's assessment of the crypto economy and the statement that the sphere is in a bear market? Do you think the crypto economy is in a bear market? Let us know your thoughts on this topic in the comments below.
Photo credits: Shutterstock, Pixabay, Wiki Commons
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