The crypto market starts the week with almost zero price dynamics. The total capitalization of digital currencies is $1.6 trillion. The Bitcoin dominance index is approaching 40%. The leading altcoins show a rather noticeable growth over the week. Ethereum (ETH) grew by 13% during the week, Binance Coin (BNB) jumped by 20%, Dogecoin (DOGE) grew by 23%. Apparently, altcoins reflect the maximum margin of optimism of participants in the crypto market, while the weak dynamics of bitcoin indicates a wait-and-see position of large capital.
The crypto market starts the week with almost zero price dynamics
The greed and fear index for bitcoin and the largest cryptocurrencies is at around 15, which corresponds to the “extreme fear” mode. The RSI index for the BTC/USD pair on the daily chart is at around 40, which is close to oversold levels. Both indicators indicate that there is significant room for growth. However, buyers still prefer to stay on the sidelines, which is also evident from the reduced trading volumes.
In the crypto community, there is an increasingly clear split between bulls and bears. The long inability of bitcoin to develop a growth momentum above $40K every day pushes an increasing number of investors towards at least a wait-and-see position, or even towards profit-taking. New buyers are in no hurry to enter the market, realizing that the risks of investing at the current stage are high, seeing the uncertainty with regulation and the fall of cryptocurrencies last month.
Price dynamics in the near future may determine the medium-term trend, so market participants are now particularly wary. This can be seen both by the dynamics of the bitcoin price, and by the dropped number of transactions and fairly low daily trading volumes. The weekend showed that the retail sector is not ready to make decisions now, perhaps the institutions will help them during future working days.