Bitcoin problems. Heavy selling in the cryptocurrency market

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today Bitcoin After a few days of consolidation, it fell to levels below $22,000. They are also under pressure from sellers ahead of the weekend EthereumTrade under $1750. The sell-off is very worrying as the “king of cryptocurrencies” broke the key support of the 200-session moving averages for the second time in the past three months, which was not the case in the previous bear market:

Heavy selling in the cryptocurrency market

The 200 SMMA ($23,000) and 200 WMA ($22,800) averages were broken, which most likely indicates a return to the main downtrend. Currently, both averages returned from support become resistance. The cryptocurrency almost completely erases the July increase. Bitcoin is not helped by the rise of the dollar.

Ethereum is losing despite the upcoming “merger” on September 15th, i.e. changing the consensus to Proof of Stake. The developers reported that while the merger would make Ethereum a 99.5% greener cryptocurrency, it would not reduce gas fees. Some investors who expect network capacity increase may not be announced.

Markets are waiting for information from the conference in Jackson Hole, where, on August 26, Federal Reserve Chairman Jerome Powell will speak about fighting inflation and reducing the Fed’s balance sheet. The regular meeting organized by the Federal Reserve will be attended by heads of central banks from around the world, politicians, influential figures from the financial industry and scholars. Speculation indicates that the issue of cryptocurrency regulation and the possibility of developing blockchain technology may also be raised.

As Altcoins are losing massively, Filecoin is down nearly 17%, Algorand is losing 10%, and the Metavers Decentraland is down 12%. The two best altcoins are Ethereum and BinanceCoin.

Bitcoin’s re-breaking of the 200-day moving average is an anomaly and confirms the weakness of the cryptocurrency. In the previous 200 bear market, the session average was only broken twice, with the bulls always recovering quickly, and retesting lows was rather dramatic. If demand does not recover in the coming days, the situation may indicate a strong supply, which may want to test June lows again.

author: XTB Brokerage House.

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