Over the past weekend, Bitcoin (BTC), the largest cryptocurrency by market cap, and other cryptocurrencies have been the subject of a relentless wave of sales. In the last three days, Bitcoin has dropped to $35,000 and now to $33,267. The overall cryptocurrency market value also fell close to 3%, to $1.62 trillion. Meanwhile, Bitcoin made a close not seen for four years. Here are the details…
Bitcoin and altcoins on the decline: Here’s what happened
Bitcoin dropped below $35,000 on Monday for the first time since February, while crypto since Thursday Almost $250 billion was wiped from the money market. The other market leader, Ethereum, was trading at $2,532 at the time of writing. Terra (LUNA) was among the biggest losers, down as much as 25 percent over the weekend and is trading at around $64 at the time of writing.
However, Algorand has gained little in value at the time of writing, following a number of recent high-profile partnerships such as the FIFA World Cup. TRON was also one of the winners over the weekend. As we reported on Kriptokoin.com , the decrease came after the US Federal Reserve’s (FED) interest rate hike announcement by 50 basis points.
BTC for the first time below the 100-day moving average
A Twitter account named Blockchain Backer reported that Bitcoin’s loss of critical support of the 100-day moving average (DMA) led to more sales. He says it can cause The cryptocurrency analyst explains the situation as follows:
Bitcoin is closing the week below the 100-week moving average. Both previous times, 2014 and 2018, the 200-week moving average led to capitulation. Today’s chart has many differences from these two times, and these two times were very similar. Big dive tomorrow!
Bitcoin closes the week below the 100-week moving average.
Both previous times led to capitulation to 200-week moving average in 2014 and 2018.
Today's chart has many differences from those two times, and those two times were very similar to each other.
Big dive in tomorrow! pic.twitter.com/0NLF0K0Y0U
— Blockchain Backer (@BCBacker) May 9, 2022
Santiment explains that trader sentiment has once again dropped to negative levels. According to their analysis, Bitcoin has now retraced as low as $33.9k, while trader sentiment slumped to a six-week low.
😱 With #Bitcoin now having retraced all the way down to $33.9k, trader sentiment has fallen to six week lows. We typically prefer to see capitulation signs like this, as weak hands leaving the space is generally what is needed for a truly notable bounce. https://t.co/AhXOBYcN9i pic.twitter.com/9HnY89RTuF
— Santiment (@santimentfeed) May 8, 2022
