Tuesday, April 23, 2024

Market Watch May 17: Crypto market sees drop in investor confidence.

As Bitcoin struggles to hold onto the $30,000 mark, the crypto market has recorded a drop in investor confidence. The crypto market has been on a roll with the popular Bitcoin recording the lows of $26,000 and Terra’s stablecoin UST nearly being wiped out.

BTC’s recent low represented a test of the 23.6% retracement of a historical appreciating range from the $15,708 – $28,387 level. It also rose above the $24,365 area – a downside price objective related to selling pressure that emerged around the $48,240 area. Buying pressure was observed. It pushed Bitcoin to the $30,990 area before momentum stalled. This was seen just below the 76.4% retracement of the appreciating range from $21,913 – $61,788.

Analysts believe that if Bitcoin continues with its downward trend, there are downside price objectives around the $25,142, $24,365, and $21,074 areas. Traders will see significant selling pressure heightened around $31,717, $31,364 and $31,289 areas. And there are upside technical price objectives and retracement levels related to historical buying pressure around the $38,000 level.

Over the past couple of weeks, adverse price developments led to lower weekly closes for BTC for six weeks in a row. This wasn’t seen in nearly eight years. The past seven days have seen high volatility unlike anything before. Worst trading was observed on May 12 when Bitcoin plunged just below $30,000 to its lowest price level, which was last seen in December 2020 at $25,300. Analysts attributed the price slump to the Luna Foundation Guard (LFG) selling 80,081 Bitcoin – around 99.6% of their position. LFG released details on May 16 about the remaining crypto collateral. From one side, the project’s sell-off risk has been eliminated but investors have raised concerns about the stability of other stablecoins and their DeFi applications.

Meanwhile, Bitcoin is changing hands at $30,271, while Ether is desperately trying to hold onto the $2,000 mark, as per data from CoinMarketCap. It has been down by 0.42% in the last 24-hours and is trading at $2,066. The altcoins have seen a mixed price reaction. There have been slight price gains and dips.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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