Bitcoin is down by 3.6% in the past 24 hours. It is currently trading at $29,282 according to data from Bitstamp.
This is not really surprising since the cryptocurrency has ended 7 weeks in the red. So we do not expect the bearishness to reverse as quickly as it started.
With the end of last week, Bitcoin lost some 38% over the last 8 weeks. The last week has seen a moderate loss, with the coin slipping by 3.3%. But this week may see more losses as the coin has not seen volume and momentum that could make it break well above the $30k region.
Volume Increase, Market Cap Down
The current trading volume of BTC is $30.6 billion. This is an increase of 26.74% in the past 24 hours. The market capitalization is at $557 billion. This is 4.26% lower than on Monday and indicative that the market sentiment is in the negative. Based on this assessment, it i s safe to posit that the downtrend for BTC will subsist in the near term.
The Relative Strength Index indicator of Bitcoin is currently 44, so there is no indication that reversal is in sight at the moment. The low investor confidence will continue to put pressure on the asset leading to lower values.
Investors Flee Speculative Assets
According to a market analyst, Investroy, the market will continue to experience dwindling liquidity. He wrote:
“Investors are fleeing speculative assets as central banks tighten monetary policy to battle spiraling inflation and dwindling liquidity. The value of TerraUSD or UST , an algorithmic stablecoin that attempts to maintain a one-to-one peg to the dollar, dropped below $1 over the weekend before rebounding, adding to the concern surrounding digital assets. Fears of increasing inflation have caused most investors to take a risk-averse attitude, selling both equities and cryptos to reduce risk. ”
BTC will find the next support around the $21-$24 region. This could happen in the next few days or weeks.