All eyes are on the top two cryptocurrencies Bitcoin and Ethereum as the crypto market has entered a recovery stage. The majority of digital currencies seem to be regaining their key price levels.
Bitcoin is currently trading at $20,059, while Ethereum is at $1,552. However, the last 24 hours haven’t been good for the altcoins. Solana is down by 3.41%, Polkadot 3.14%, Cardano lost 2.60% and XRP 1.76%. Memecoins have also recorded a drop in value, Dogecoin lost 3.45%, and Shiba Inu 2.89%, respectively.
The world’s most popular cryptocurrency is struggling to hold onto the $20,000 mark. But analysts expect a breakout. Philip Swift, an independent crypto market analyst, tweeted that the Crypto Fear and Greed Index suggests that sentiment is softening among investors. Delphi Digital, an analytics firm, said the Futures Open Interest Leverage Ratio for Bitcoin reached its highest level – recorded at more than 3% of the BTC market cap. This was following the market-wide collapse on August 26. The firm said open interest is large relative to market size, showing a higher risk of market squeezes liquidation cascades, or delivering events.
Analysts believe the bears are putting pressure by creating large sell positions. As such, there is a need for bulls to raise price action with increasing volumes. Meanwhile, bearish momentum is weakening – technical indicators are oversold. If the BTC price falls, it may be a swift one to the $18,000 mark with fresh new lows. The higher probability is for the popular cryptocurrency to slip below the $19,500 mark as macroeconomic conditions and high inflation continue to put world markets on the edge.
