11.4 C
Friday, April 19, 2024

FxPro Group: Overheating of the cryptocurrency market has already been eliminated

- Advertisement -
binance 728x90 banner

According to experts from the investment company FxPro, the rollback of the cryptocurrency market to support levels in the second half of March has already eliminated the overheating of investment sentiment and overbought crypto assets.

According to the CoinMarketCap observer, the total capitalization of the cryptocurrency market by Monday, April 24, decreased by almost 9% to $1.155 trillion, returning to the consolidation levels of late March – early April. The market value of the leading crypto assets by capitalization, such as bitcoin and ether, fell by 8.4% and 11.8% over the week, to $27,383 and $1,843, respectively.

Analyzing the results of the week, the experts of the investment company FxPro conclude that the cryptocurrency market has exhausted the April growth momentum and has moved on to testing the medium-term uptrend in the form of a 50-day moving average, fixed at $27,000. 

If the cost of BTC falls below $26,600, FxPro analysts expect a deeper fall in the asset. A similar situation develops in the behavior of the ether. ETH has also come close to testing its 50-day period at the $1,800 support level.

According to FxPro analysis, the fall is technical in nature and is due to the end of active speculation, overheating the market. The rollback in the value of cryptocurrencies leveled out the overly positive mood of the crypto community and eliminated the accumulated conditions of overbought assets. According to FxPro experts, this will have a positive impact on risk analysis by potential investors. At the same time, traders with short-term positions are advised by FxPro to keep an eye on the short-term, as the risk of a sharp decline in asset values ​​has increased.

Earlier, analysts from the Korean company CryptoQuant named the overheating of the market as one of the reasons for the fall in the market value of bitcoin below the psychologically important level of $30,000. Conclusions were drawn on the ratio of two indicators of the futures market: open interest rates and funding rates.

- Advertisement -


Crypto investments come with high risk and you should always exercise caution when investing in any crypto asset. Investing in crypto carries a high level of risk, and may not be suitable for all investors. Any investment decisions made by you are made at your own risk and we are not responsible for any losses that may occur. Before investing, we recommend you consult a financial advisor to understand the risks and rewards associated with investing in crypto.

- Advertisement -binance
Related Articles