How deep can the crypto market fall?

The cryptocurrency market capitalisation fell 1.2% over the past 24 hours to $2.21 trillion. The cryptocurrency Fear & Greed Index reacted rather sharply, losing 6 points to 23 and slipping back into extreme fear territory, remaining in the lower half of the scale for over a month.Among the top coins, Solana (+3%) and Tera (+6%) fared best, while Polkadot (-3.8%) Cardano (-3%) fared worst.

Bitcoin, which is sensitive to demand from US tech stocks, has lost more than 2% in the past 24 hours to $47.5K.

Its rate continues to walk around the 200-day average, reflecting either indecision or a balance of power between buyers and sellers. At the same time, this line itself has reversed downwards, and the RSI on the daily charts remains near the oversold area.

Both of these indicators point to a possible failure of the price shortly.

A bearish scenario could bring bitcoin Bitcoin Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger n Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger n Read this Term back to 40K or even 30K fairly quickly if we see another episode of margin liquidation. Large long-term buyers are unlikely to return before the price drops to $20K. Further evidence that the bears own the initiative in cryptocurrencies Cryptocurrencies Cryptocurrencies represent nearly counterfeit-proof digital currencies that are built on blockchain technology. These can be obtained using cryptography or virtual currencies.Cryptocurrencies constitute decentralized networks, harnessing blockchain technology that crucially are overseen by a central authority. This makes cryptocurrencies unique in their function, placing them effectively outside the sphere of influence from any government or central bank.Such digital currency stems from encrypti Cryptocurrencies represent nearly counterfeit-proof digital currencies that are built on blockchain technology. These can be obtained using cryptography or virtual currencies.Cryptocurrencies constitute decentralized networks, harnessing blockchain technology that crucially are overseen by a central authority. This makes cryptocurrencies unique in their function, placing them effectively outside the sphere of influence from any government or central bank.Such digital currency stems from encrypti Read this Term - ETHUSD is holding below $4000, confirming the shift from a rising to a downtrend in the last month. Should the sell-off intensify, potential buyers of Ether should look to $3350. The rally started from this level in early October, and now the 200-day moving average is near this mark. A break below it runs the risk of a buyers’ capitulation and would quickly land the rate at $2700. A longer-term bearish target is seen in the $1300-1700 area, where long-term buyers are expected.

The realisation of such a bearish scenario would return capitalisation to the $1 trillion area for the entire crypto market. This would be a slightly lesser failure than the top two currencies, as we believe that long-term investors are still looking for other projects outside of the two oldest currencies.Market Analyst live on the youtube channel.

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