Bitcoin’s breaking support

Bitcoin declined by
5.7%, ending the week at around $40,300. Ethereum lost 6.6%, while other
leading altcoins in the top 10 fell from 2.9% (Binance Coin) to 17% (Terra).
The exception was XRP (+0.8%). Monday began with a further 3.3% drawdown in
bitcoin to $38.9K, which had fallen below its support line since January.

The signal for a
break of the mild upward trend would be a consolidation below the $38K levels.
If the bulls capitulate, the first cryptocurrency could be pushed into the
$32-35K range without much resistance. A consolidation scenario below $30K
would require an absolute disaster in the financial markets. We have seen
steady and impressive demand from long-term buyers as we have fallen into this
area.

The total capitalisation of the crypto market,
according to CoinMarketCap, fell by 7.3% over the week to $1.81 trillion. The
Bitcoin Dominance Index fell by 0.5% to 40.75% over the same period. The
cryptocurrency fear and greed index lost 4 points to 24 by Monday, returning to
“extreme fear” territory after two days of consolidation in “fear”. Bitcoin
declined for the second week in a row under negative stock market performance.

Last week’s
noticeable decline in BTC on Monday

Executives of the
world’s largest crypto exchanges told CNBC that they have recently noticed
signs of a “crypto thaw” regarding governments’ changing attitude towards
cryptocurrencies. Portugal’s central bank has granted the country’s first
crypto-asset license to a bank. Bison Bank became the first bank in Portugal to
offer large customers cryptocurrency storage and trading services. Cardano
founder Hoskinson suggested that Musk join forces to create a decentralised
social network if Twitter does not come under the Tesla founder’s control.

Vlad Tenev,
Robinhood’s CEO, said DOGE would become the most used cryptocurrency for
Internet payments. However, to do so, developers must improve transaction
processing speed.

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