Cryptocurrency continues to suffer from investor risk aversion
The largest cryptocurrency has dropped to its lowest level in almost a month, as investor risk aversion persists despite evidence of modest fresh interest in cryptocurrencies.
On Monday, Bitcoin slid 4.2 percent to $38,580, while Ether, the second-largest cryptocurrency, plummeted 4.7 percent to $2,902.
The value of the global cryptocurrency market fell by 4% to $1.9 trillion.
According to statistics provider Classnode, bitcoin interest is still modest, with a limited increase in the coin’s user base and no fresh demand.
“Bitcoin isn’t close to being oversold, and the $35,000 short-term support is unlikely to hold, and we still anticipate it will touch $30,000,” said John Rock, a technical analyst at 22V Research.
“Many bitcoin bulls remain unwavering, and $100,000 and even higher forecasts are still mentioned,” he continued. However, with price targets like $500,000 and $1 million in circulation, it’s difficult for us to understand why sentiment remains anything but positive, and with a chart like this, it’s bad news.