- BTC sentiment slumps to 'fear' territory
- ETH hit new ATH last week despite broad market sell-off
- Three Ethereum ETFs gain approval in Canada
The past week was a negative one for the cryptocurrency market. Bitcoin continued its downward move and fell below $47,000 on Sunday. Altcoins followed the most popular cryptocurrency with Ethereum being one of the exceptions. The second most popular cryptocurrency managed not only to reach a new all-time high but strengthened significantly against Bitcoin. This caused Bitcoin's domination to drop to 49% over the weekend. During today's session so far we observed some wild price swings. Bitcoin managed to erase some of the recent losses and is approaching $53,000 level. The capitalization of all digital assets in circulation fell to 1.982 trillion, while an average daily trading volume is registered at $161.7 billion. Bitcoin's market dominance currently stands at 50.2%.
Bitcoin bounces after overnight decline
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appBiden's tax increase resulted in both cryptocurrency and stock exchanges collapsing in tandem, although the Bitcoin crash was much deeper. Recent declines show a growing correlation between Bitcoin and the S&P 500 index since the beginning of 2021. This week many major US companies will publish their quarterly results including, Tesla which is strongly identified with Bitcoin. If the general reaction on the stock exchanges will be positive, then it may also translate into the cryptocurrency market. However at the moment, the market sentiment has shifted over due to the last week price action. The Crypto Fear & Greed Index, which measures current sentiments across the crypto market, moved from “Extreme Greed” toward “Fear,” as most cryptocurrencies fell sharply last week. The Index measures aspects of the market, including its volatility, trading volumes, momentum, social media sentiments and trends.
The Crypto Fear & Greed Index reached a level not seen since April 2020 and means that investors are as worried about losing capital when trading cryptocurrencies as they were a year ago. Source: alternative.me
Also, according to analyst firm Santiment, Bitcoin's social indicators indicate that investors no longer expect new peaks and a continued boom in the near future. The market went bearish, which indicates anticipation of further losses and deeper corrections.
Bitcoin's social sentiment shifted to a bearish outlook. Source: Santiment
Bitcoin managed to recover some ground after the recent sell-off. Price bounced off the local support at $46.889 and broke above major resistance at $50,900 which is additionally supported by the lower limit of earlier broken 1:1 structure. If the current sentiment prevails upward move may be extended towards 50 SMA (green line). Source: xStation5
Ethereum ETFs begin trading on Toronto Stock Exchange
Three Ethereum ETFs have been recently listed on the Toronto Stock Exchange. The move follows shortly after the regulator approved the world's first bitcoin ETFs by the three firms earlier this year. Meanwhile, in the United States, many companies have applied for bitcoin ETFs or have re-filed previous applications with the Securities and Exchange Commission. The Agency is actively considering several of these submissions.
Ethereum bounced off the upward trendline and is approaching its fresh all-time high at $2637.00. However bearish diverges appeared on the Momentum indicator, therefore one cannot rule out another downward impulse towards support at $2208. Source: xStation5
ETHBTC pair hit new record high last week. In the past, a strong ETH against BTC has been a very bullish sign for altcoins. Source: xStation5
