Bitcoin's last hope for $38K

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Bitcoin's last hope for $38K

Bitcoin has lost 5.3%
        in the past 24 hours, falling to $38.4K. Ethereum is down 5.4% to $2845 in the
        same time frame. In the top 10 altcoins, losses range from 3.6% (BNB) to 12.7%
        (Dogecoin). Total crypto market capitalisation, according to CoinMarketCap, fell
        5.1% overnight to $1.77 trillion. Bitcoin's dominance index fell to 41.2%.


         
   

By Wednesday, the
        Cryptocurrency Fear and Greed Index fell 6 points to 21 and moved back to
        "extreme fear". Bitcoin collapsed with acceleration compared to the stock
        market on Tuesday, falling the most in 15 days. Near the $38K level, the first
        cryptocurrency fumbled for buyer demand. Around these levels in February and
        early March, buyers were already breaking the downtrend, but the upside
        momentum proved unsustainable.


         
   

On the balance sheet,
        we have contradictory short-term signals. The BTCUSD has abruptly fallen below
        a critical support line, a bearish signal. At the same time, the uptrend
        breakdown failed to be confirmed by buying near previous local lows. We can
        describe it as Bitcoin falling out of the window but latching onto the
        windowsill. Equally contradictory was the news backdrop.



   




According to
        CoinShares, institutional investors continue to withdraw capital from crypto
        funds from the downside. The net outflow of funds last week was $7.2 million,
        although it was down from the previous two weeks when investors withdrew more
        than $231 million.


         
   

Regulatory pressure
            continues unabated


         
   

ECB spokesman Fabio
        Panetta called the cryptocurrency industry the "Wild West" and called for
        stricter regulation.


         
   

Meanwhile, bitcoin
        steps up further in recognition of a long-term investment vehicle. Fidelity
        Investments, one of the largest asset management firms, will make it possible
        to add bitcoin to its retirement portfolios.

In addition, the
        sustainability of mining has improved. The Bitcoin Mining Council (BMC) stated
        that mining efficiency increased by 63% in the last quarter thanks to the
        widespread adoption of sustainable energy and modern techniques.


         
   

As a result of the
        controversial picture, investors refrain from active action. According to
        Kaiko, trading volume on cryptocurrency exchanges has fallen to its lowest
        level since the summer of 2021. Glassnode believes that bitcoin's fundamental
        metrics have improved in recent months.


         
   

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

Source: Bitcoin's last hope for $38K

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