Bitcoin slides into support

Bitcoin was down 3.4% on
Thursday, ending the day near $39.9K, although it managed to bounce back above
$40.1K by Friday morning, cutting the intraday decline to 2.8%. Ethereum has
lost 2.5% in the last 24 hours, and other leading altcoins from the top ten are
predominantly declining, from -1% (BNB) to -7.3% (Terra). The exception was
XRP, which added 5.4% during this time.

BTC
can develop a reversal
According to CoinMarketCap, the total capitalization of the crypto market
decreased by 2.8% per day, to $1.87 trillion. The Bitcoin dominance index fell
by 0.3% to 40.7%.

By Friday, the cryptocurrency fear and greed index returned to the extreme fear
territory, losing 6 points to 22. US stocks failed to build on the offensive,
losing all of the previous day's gains, leading to a stronger selloff for
bitcoin compared to alternative cryptocurrencies.

From the technical side, Bitcoin is trading near the support level, which runs
through the lows of January, February and March. A formal signal to break the
support will be considered a failure under the previous lows in the $38K area.
The ability to develop a reversal to the offensive from these levels, on the
contrary, will reinforce the importance of this moderate uptrend line.

Crypto
news
The head of Ripple noted that the court with the SEC is going “much better than
expected,” which provoked a wave of XRP growth, allowing the coin to resist
gravity.
BlackRock CEO Larry Fink said that the largest asset management company continues
to study the cryptocurrency sector.

Amazon CEO Andy Jassy said that the company has no plans to introduce payments
in cryptocurrency in the near future, although it is exploring the
possibilities of digital assets. At the same time, he looks to the future of
cryptocurrencies and NFTs with interest and optimism.

The Bank of Canada is exploring scenarios for the coexistence of digital and
fiat currencies, the first regulator to decide to use quantum computing for
this study.

Bank of Japan chief executive Shinichi Uchida said the upcoming digital yen
will not be used to achieve a negative interest rate. The second stage of the
launch of the digital yen started on March 24th this year.

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