FxPro Financial Services Ltd | Jan 10, 2022 06:33AM ET
The cryptocurrency market received moderate support from retail buyers over the weekend. Over the past 24 hours, the capitalisation of all coins rose 0.22%, according to CoinMarketCap, approaching $1.97 trillion.
The cryptocurrency Fear & Greed Index was stuck at 23 over the weekend, indicating extreme fear. The index has been hovering at the lower half of the scale since Nov. 18. Optimists, however, may note that the indicator has bounced back from the 10 level. The dip here in May and July coincided with the lows within the impulse, hinting at the potential for some technical rebound.
A longer-term view of the cryptocurrency market makes one more cautious about its prospects. Bitcoin has been in a downward corridor since November last year, having fallen to its lower boundary by the end of last week. Local overselling is a chance for a rebound, but the overall trend is still downwards.
Cryptocurrency investors should not dismiss the idea of 4-year cycles in Bitcoin affecting the entire sector just yet. According to this hypothesis, 2022 could turn out to be a repeat of 2018 and 2014 - bear market years after a surge in the previous two years.
Thus, it is worth paying increased attention to whether the crypto market manages to return to growth in the coming days and weeks. A strong start to the year will put these fears to rest.
The FxPro Analyst Team
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