Alejandro Zala, Country Manager of Bitpanda Spain, shared a new analysis on the cryptocurrency market with Cointelegraph en Español last Friday, with a focus on what happened this week.
Bitcoin, the largest cryptocurrency by market capitalization, has lost a significant percentage in recent days and has traded around 50,000 euros.
“Market sentiment has turned fearful, with large price gaps going up and down, as the market liquidated millions of long and short positions due to volatility,” Zala noted.
He also said that BTC is down about 10,000 euros from its all-time high, adding: “After the initial drop from the ascending channel pattern, bitcoin has been mainly trading sideways between 50,000 and 53,000 euros. The Crypto Fear & Greed Index is around 40 points, about 10 less than a week ago. The index suggests that market participants are in fear mode, which some traders see as a counter sign: at this point, buyers who exited when greed was at extreme levels gradually tend to return to the market. “
1M ETH has been burned since the August hard fork
While most of the crypto market is moving lower on intraday charts, the upper time frame structure remains bullish.
“Ethereum failed to establish the support level at 4,200 euros and fell below the longest trend line. Price is trying to form a higher low in the falling wedge pattern to return to bullish momentum again. The bulls were strong at the current support level of 3,500 euros and pushed the price to just below 4,000 euros, where the bears are currently in control, “said Zala.
“More than 1 million ETH has been burned, worth approximately € 3.8 billion, since the introduction of the EIP-1559 protocol in August as part of the London hard fork. Although the burning mechanism has a positive effect on the price, ETH is still an inflationary asset. Since the update, the Ethereum network has issued almost 1.5M new ETH as a reward to miners, which has meant a net issuance of around half a million tokens, “he added.
BEST is around the 1 euro valuation
Bitpanda’s own token BEST (Bitpanda Ecosystem Token) showed its strength last week as it moved towards the € 1 price despite a bearish overall outlook. The price is now only 13% below the November high.
ADA keeps fighting
ADA, Cardano’s native token, is struggling to change the negative trend in its price evolution.
“ADA is trading in a falling wedge pattern, 45% below its all-time high reached in early September. The token is currently at € 1.45, the lowest price since August 2021, ”said Zala.
conclusion
“Although things seem excessively bearish in the short term, the big picture looks much better, with global adoption constantly growing. Falls, like the one we are experiencing now, are somewhat healthy and necessary for a sustainable bull cycle and can be detected in all financial markets. Despite the many roller coasters this year, Bitcoin’s value has doubled since early 2021, and most of the major altcoins have posted triple-digit price growth, which is a great result in every way”, He concluded.
(Clarification: This material is intended to be a comment on economic or market conditions and does not constitute a financial analysis or recommendation. The analysis presented here corresponds to Bitpanda’s Country Manager in Spain and under no circumstances is it an investment recommendation from Cointelegraph. Anyone, before investing, should conduct their own research and is responsible for their own decisions).
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