The crypto market remains in limbo and resembles a compressed spring at the same time. Bitcoin on Tuesday morning is running a little below $46,000, having stopped the sluggish slide of the previous six days.
Strictly speaking, the cryptocurrency market does not look excessively oversold to become uniquely attractive for short- and medium-term purchases, but at the same time it shows signs of buyer interest.
Greed and fear index of the crypto market: low, but far from oversold Index of greed and fear of the crypto market: low, but far from oversold
The index of cryptocurrency greed and fear has dropped to the level of 30, i.e. “Fear”. In May, the most active phase of the sale on the crypto market began from these index levels. Historically, the most attractive were purchases of cryptocurrencies with a reversal to the growth of this index from values of about 10 (with extreme fear).
However, caution is not yet a strong feature of crypto investors. Bitcoin is methodically gaining support this month on the decline to a simple 200-day moving average, which is now passing near $44300. Growth from this curve in early August gave rise to 40% growth over the next five weeks.
BTCUSD continues to find support on the decline to the 200-day average BTCUSD continues to find support on the decline to the 200-day average
Yesterday’s Litecoin dynamics clearly shows how fast and strong the movement can be with significant news.
Litecoin experienced brief moments of euphoria yesterday, whose quotes soared by a third to $235 on the news that Walmart (NYSE:WMT) would accept this coin as payment. The news turned out to be fake, and the coin quickly returned to previous levels near $173. However, it is worth noting the positive dynamics in the coin, which over the past week has steadily found support from buyers on declines below $ 170, stuck between 50- and 200-day moving averages.
LTCUSD is stuck between 50- and 200-day moving averages and LTCUSD is stuck between 50- and 200-day moving averages
Altcoins in general look weaker than bitcoin in recent days, allowing it to regain some of the lost positions in the total capitalization of the crypto market. And this is not such a bad sign, since in bitcoin, changes in the trend are often outlined in the first. The presence of steady purchases in the coming days will allow the markets to shake off pessimistic expectations from the crypto market and revive positive price dynamics against the backdrop of a prolonged lull after the recession.