The crypto market has lost momentum after a full weekend in the United States. Bitcoin and other larger cryptocurrencies have recorded losses during the current trading session and could continue to decline in the short term.
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At the time of writing, the total crypto market cap is approximately $ 860 billion with a sideways movement over the past week. This metric has been a downward trend since the end of 2021, but declined sharply in April-May 2022, as seen in the chart below.
As a result, general sentiment in the crypto market tended to decline and noted extreme fear levels in the Fear and Greed Index. The price of Bitcoin and other larger cryptocurrencies is often found below or above locally when the Index is close to 10 or 80.
The crypto market found a bottom in June when the BTC price traded near $ 17,000 and pushed the Fear and Greed Index to extreme levels. Since that time, the number one cryptocurrency has pushed the market slightly upwards and has formed a new range between $ 18,600 and $ 21,000.
The level is a major resistance area along with $ 22,000. Market participants look more positive about the break above that level, according to a new report from Arcane Research. The first noted the following about the changes in market sentiment over the past week:
Sentiment in the crypto market has been depressed for several months, but we saw a slight improvement this week. After the Fear and Greed Index rose to 19 yesterday, we are at our highest point in two months. While we are still comfortable in the “Extreme Fear” region, we are now pushing things into the “Fear” region, and the market is somewhat optimistic (…).
Ready For Another Crypto Lack?
The total crypto market capitalization and altcoin market performance are tied to BTC, ETH, and larger cryptocurrencies. As NewsBTC has reported, the sector is now affected by macro-economic factors; rising inflation, and an increase in interest rates by the US Federal Reserve (FED).
The influence of these factors on the market must diminish before a new asset class can be separated from traditional finance. In the meantime, any bullish momentum will remain vulnerable.
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If the price of Bitcoin can’t push above $ 22,000 soon, the market could see a decline in the Fear and Greed Index. Data from the Material Indicator and the Trend Precognition Indicator indicate that there is a lower level re -test. Via Twitter, for analysts writes:
BTCUSDT and ETHUSDT both declined on the 21 Day Moving Average and now we see the A1 Slope Line Precognition Trend play on chart D showing a short-term momentum loss.