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Bitcoin’s struggle to break away from support

Bitcoin
added 0.3% on Wednesday, ending the day around $41,400, and is adding another
0.6% since Thursday morning to $41,630. Ethereum has gained 0.2% in the past 24
hours, while other top 10 altcoins have shown mixed dynamics, ranging from a
1.7% decline (XRP) to a 3.6% gain (Polkadot).

Total crypto
market capitalisation, according to CoinMarketCap, rose 0.4% overnight to $1.92
trillion. Bitcoin’s dominance index added 0.1 point to 41.1%.

The
cryptocurrency Fear & Greed Index is now in its third day, staying at 27
points (fear), but we see a slight upward movement in the market.

In the
crypto market, as in the high-tech Nasdaq, we can call it cautious demand from
buyers of the deep, but this support is not turning into a rally. The strong
correlation between the tech sector and bitcoin is holding the latter back

That said,
the very fact that bitcoin has managed to lock in an uptrend and attempts to
push back from that support is setting up positives for the coming days.

Bitcoin’s
uptrend of the last four months can be extended to the left, and then it
appears to be close to the July 2021 low, which was then near 30k. If we are
right, bitcoin, and subsequently the entire crypto market, are saved from
falling into a crypto winter by long-term buyers who find the current levels
quite attractive.

Glassnode
does not rule out that bitcoin has already formed its “bottom”

Although it
cannot yet break out of its range formed since February. The process of
redistributing coins from speculative investors to hodlers is likely already
complete, which will reduce selling pressure going forward.

According to
BitInfoCharts, the world’s third-largest bitcoin whale has acquired 2,822 BTC
worth $117 million in the past seven days.

In 2022, 3.6
million Americans will use the cryptocurrency to make purchases, a report by
research firm Insider Intelligence predicts. The number of cryptocurrency users
in the US is expected to rise to 33.7 million by the end of this year.

This article was written by FxPro’s Senior Market Analyst Alex
Kuptsikevich.

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