March 28, 2024

The cryptocurrency market continues to decline amid a shortage of demand

The cryptocurrency market continues to decline amid a shortage of demand

Bitcoin continues to experience a lack of demand.The recovery of quotations to $ 33,000 on Wednesday, stimulated by assurances from the head of the Fed that there is no rush to revise the quantitative easing program amid rising inflation, could be a good signal for the end of the downward dynamics that has continued since the end of June, but buyers did not build on the success.

On Thursday, the BTC rate reached its lowest level in the last two weeks and further raised the stakes on the issue of short-term vector. A move below $31,000 could trigger stops.long positions, as a result of which the current phase of consolidation may be replaced by an impulsive movement down to $ 20,000.

“The graph looks “terrible”,– said one of the largest bond managers Jeffrey Gundlach, and it is difficult to disagree with him. At the same time, there is still a chance of a rebound to the upper limit of the $30 000-$40 000 consolidation – The spring has not yet relaxed.

The current disposition is indeed determinedshortage of demand. Market “horror story” sales of the Bitcoin trust from Grayscale Investments by institutional investors have not yet been confirmed.

Federal Reserve Chairman Jerome Powell's statement thatafter the appearance of the digital version of the dollar, the world will not need stablecoins and cryptocurrencies, in general, they cannot but cause a smile. Probably PayPal, which raised the limit of weekly purchases for US customers to $ 100,000, is making the wrong strategic move. Like Square, which announced the development of a service for creating DeFi services, is mistaken and throws money down the drain.

However, the institutions that determine the weatherin the market, regulatory certainty is needed. But it is not there yet and the situation has not yet changed for the better. In the UK, they decided to spend money on social advertising about the risks of cryptocurrencies. And the US Department of Justice announced that Binance is required to assist in the investigation of criminal offenses. 

As a result, against such an information background,retail investors can't lift the market, and big players don't want to. The current situation can be resolved on the weekend. A good option is to bring the market beyond the boundaries of consolidation at this very time, in order to provide emotionality to trading on Monday with the return of the main group of participants.

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