A sudden downward wave hits digital currencies
Today, Thursday, the digital currency market witnessed noticeable declines, after the optimism that prevailed in the market following the statements of the US Federal Reserve Chairman on Tuesday, so that the major digital currencies turned red, led by the first digital currency, Bitcoin.
40 billion evaporate
In a few hours, digital currencies lost more than $40 billion of their market value, bringing market capitalization to its highest level since last August.
And after digital currencies rose strongly yesterday, heading towards the $1.1 trillion mark, the market rebounded today to levels below $1.06 trillion.
Hold on to greed
Despite the declines in the crypto market, the market bulls are still hoping for a quick surrender to the bears, as the market still clings to the feelings of greed that dominate traders and speculators.
The Crypto Fear & Greed Index decreased during Thursday’s trading to 55 points, compared to 58 points on Wednesday.
Bitcoin and the bullish failure
Bitcoin price once again failed to continue its climb and fell below $23,000, for the currency to move lower amid fears of widening losses below the $22,500 support.
Bitcoin price moved lower from the $23,500 resistance area, to drop below the $23,000 levels and the 100 hourly simple moving average.
The next major resistance is near the $23,000 area, and the pair could accelerate lower if there is a close below the $22,500 support area.