The last trading week on the crypto market went under the banner of “fake hopes”, as starting from Wednesday, Bitcoin began a cascading fall and lost approximately 2-3% daily. Over the weekend, there was some “warming” and crypto-gold again tested the $43,373 mark, but could not stay there and fell below $42,000 by the beginning of the new trading week. Altcoins, led by Ethereum, corrected in parallel with BTC, but carefully tried to keep the support gained over the past two weeks. In particular, ETH is heavily bull-buying, which keeps it above the main support at $3,000. However, the alt was unable to cope with new resistances above $3300 and is currently trading at $3156 per coin. The global economic challenges for the cryptocurrency market have remained unchanged for more than two weeks. But now we can definitely add to them a complete lockdown in China, as a result of which the Shanghai Composite Index and Hang Seng have already fallen by more than 2%. In addition, the tension in global markets due to Russian military aggression against Ukraine has not gone away. It seems that the crypto industry as a whole has not yet developed a system for responding to the economic consequences of large-scale wars, so any events from Eastern Europe now instantly affect quotes.
Most crypto analysts agree that Bitcoin bear market should be expected this week, as general market uncertainty and the pressure of the Chinese lockdown on major stock indices do not appear to be going anywhere. Macroeconomic factors signal a high growth potential for crypto-gold in the long term, but consumer demand is still quite low and it influencing the movement of the asset now. Now Bitcoin is trading at $42,140. During the day, it sank by more than 1%, but it should be borne in mind that the trading week was closed above $43,000, so the bullish stimulus should be enough for a gradual recovery.
According to crypto-analyst Rekt Capital, Bitcoin has a chance to regain its key price region before the weekend. Since the weekly candlestick closes above $43,100, the asset could potentially start moving towards $50,000. But this calculation does not take into account some off-market price influencers. BTC is now retesting the previous resistance as support, so for now the main concern is to avoid cascading selloffs.
Ethereum almost completely repeated the weekly scenario of closing Bitcoin, but at the moment it has fallen below $3130 and shows no signs of recovery. During the day, crypto-silver lost about 3.5% and several important positions, so it’s still difficult to speak unambiguously about the further movement of the coin. Early in the day, ETH fell below the support at $3,150 and some experts claim that the price has already started moving towards the next support at $3,050.
On the other hand, the bulls are clearly looking to take control of the short-term hurdle at $3250. At the same time, the main resistance remains at the level of $3,300, above which the price may start a new growth. If this scenario does not work out, the asset could revisit the challenging $3,000 mark, where buying pressure should increase.
The market of one of the oldest altcoins in the short term will be bearish. The price of Litecoin returned to $107 as the bulls failed to overcome the resistance at $114. It’s noteworthy that the current position is a strong support and if LTC falls below this level, further losses can be expected.
LTC technical indicators continue to be bearish. The MACD shows a decrease in bullish momentum as the coin enters a consolidation phase. The RSI is holding at 45.77 meaning Litecoin is currently slightly more leaning towards the oversold zone. At the same time, the volatility of the asset is quite low, which indicates a lack of trading activity in the market, as the Bollinger bands narrowed and approached each other. It seems that if the bulls fail to pull the coin above $114, further growth in the price of LTC will remain a matter of long-term prospects.