BTC and ETH are testing recent bottom supports as market fears intensify.Bitcoin and the entire crypto market remain under pressure as the leading digital currency fails to gain ground or show any signs of a trend reversal.The last 24 hours saw relatively increased volatility, but red is still the prevalent color among the top coins.The total market capitalization is down nearly 1% since yesterday and stands around $1.36 billion, per data from CoinGecko, whereas BTC and ETH are down 2.7% and 4.3%, respectively, so far today.At the time of writing, nearly all of the top 50 digital assets by market capitalization — DeFi tokens included — are experiencing selling pressure, and weekly losses for most are in the double digits, including ETH, ADA, DOGE, DOT, UNI and SOL.If the current trend continues, we may see further declines across the board.The Bitcoin Fear & Greed Index is now back at 20, reflecting the market’s lack of confidence.
This extreme fear impacts any potential price recovery, as long position holders take profit at the first sign of green and any downturn is worsened by panic-selling.
Bitcoin will need to surpass 35,000 USDT for starters and conclusively breach the 40,000 USDT resistance for there to be any notable sentiment recovery.ECB announces digital-euro investigation phase launch In a blog post yesterday, the Governing Council of the European Central Bank officially announced the launch of its investigation into a possible digital euro implementation.
ECB President Christine Lagarde was quoted saying: “It has been nine months since we published our report on a digital euro.In that time, we have carried out further analysis, sought input from citizens and professionals, and conducted some experiments, with encouraging results.All of this has led us to decide to move up a gear and start the digital euro project.” The ECB, in a tweet , also stressed the “negligible” environmental footprint of the proposed digital euro infrastructure compared to cryptocurrencies like Bitcoin.This point is interesting, given the recent discussions on Bitcoin’s real impact on the environment.Not only are most of these criticisms debatable but the recent crackdown on BTC mining in China also alleviates some of these concerns.With China’s central bank-issued digital currency, DCEP, already in its advanced stages, the digital euro project may have a lot of catching up to do in what appears to be a global race toward the digitization of major international currencies.
Top altcoin gainers and losers: CHZ goes green against nearly all large caps – CFG/USDT +20.94% – KINE/USDT +13.92% – GHST/USDT +11.72% – IQ/USDT -11.51% – AAC/USDT -10.72% – KISHU/USDT -10.16% Among assets with market caps of $1 billion and above, the highest performer on OKEx today is CHZ, with a 6.87%% gain, while the biggest loser is SOL, with a 6.91% loss.BTC technical analysis: Bearish pennant playing out A bearish pennant had been forming for a while on the BTC/USDT daily chart, and we saw it play out yesterday as the leading digital currency lost the 33,000 USDT level.Now, the long-standing support at 31,500 USDT is being tested and failure here would see 29,000 USDT as the next possible floor.On the upside, 33,500 remains a strong resistance and bulls will need considerable firepower to challenge that level, especially given the current state of fear in the market.
ETH technical analysis: 200-day moving average becomes resistance Despite the upcoming London hard fork, ETH has been in a downtrend for weeks, and we’re seeing the formation of lower lows and lower highs.This trend indicates a loss of buying interest and a general exit of holders at every drop.Moving forward, the first major support for ETH lies around 1,850 USDT, followed by 1,700 USDT.However, any sentiment recovery from this point could also see ETH bouncing back strongly, at least until it reaches the 200-day moving average, which is currently providing resistance at around 2,050 USDT.
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