The cryptocurrency leader is caught in a short-term downtrend, defined by the declining highs of the last month. “If it stays above $ 50,000, the next test is around $ 53,500, and a move above would leave it in a much stronger position and perhaps signal the end of the correction, ”Erlam noted. Analysts are bullish, however, as technical indicators look oversold and altcoins start to show signs of wanting to bounce., with Ethereum, which lost around 10% during the recent market correction, leading the gains. Total capitalization is still around $ 2.36 trillion.
The fears that have weighed down the rest of financial markets in recent weeks have affected the appetite for cryptocurrencies due to the slowdown in the US economy or fears of the new variant of the coronavirus, Ómicron. In fact, experts draw attention to the fact that the digital asset has behaved more like a risk security than a safe haven, causing it to fall in line with the rest of the market.
Despite all the above, technical analysts warn that the medium-term outlook continues to be bullish for the most highly valued of digital currencies. But a Natixis survey among 500 institutional investors from various countries – including four central banks, more than 20 sovereign wealth funds and more than 150 corporate pension plans – indicates that after the boom in this type of investment after the last year , are the “leading candidate” for a “major correction” in 2022.