The whole week for the cryptocurrency market took place with a bearish sentiment. Many investors rush to get rid of their cryptocurrency assets and convert them into Fiat money. With a local peak of about $12 000 on Monday, January 29, Bathinda times tested resistance of $8 000 on Friday and Sunday, but so far both times managed to jump up. All of the other top cryptocurrencies replicate the fall of a leader.
We can say that the panic occurs on all continents, from East to West. Asian investors have shown that panic as easily as you and euphoria. On Sunday evening the bitcoin slipped below $ 8,000 and the lower boundary has reached $ 7,800. Later, however, the market has recovered somewhat and the price returned to range between $8000 and $8500, which is 60% lower compared to the highs of December, when the bitcoin at its peak was reached almost $ 20,000.
This situation in the cryptocurrency market due to several reasons, but the main is the negative news background, which has been for months filled with news about how regulators from different countries trying to impose its own order in the cryptocurrency sphere. So, in January, the regulation of cryptocurrencies has tightened in China, South Korea, Indonesia. India
and other Asian countries. In this regard, many small investors are leaving the cryptocurrencies, as they were counting on further growth.
In recent days, several other news added fuel to the fire, such as the prohibition of advertising of crypto-currencies and ICO on the pages of popular social networks, as well as reports of possible inspection of Tether and exchange Bitfinex,
suspected of collusion and emissions are not secured token USDT. This further stirs the nervousness in the market.
After the crash bitcoin and altcoins, which continue to depend on the main cryptocurrency, despite the fact that the index of dominance of bitcoin since the beginning of the year balances at historic lows, ranging between 31 and 35%. During the week, the cryptocurrency market has lost almost $ 200 billion of capitalization and for the second time in a week fell below $400 billion.
In light of all these negative events it is hard to believe that this situation is temporary and very soon the market will regain lost ground. However, it is possible to note and positive strokes that bitcoin stubbornly resists further decline. The bulls stubbornly defend the line of $8 000 and the number of buy orders below this figure is growing rapidly. Futures contracts of bitcoin, despite the small amounts and while a weak influence on the market, today hold slightly higher spot prices.