The weekly pattern for crypto markets continues. After slight volatility this week, with Bitcoin holding at $19k and Ethereum staying above $1,300, the trading volume and price action drop dramatically this weekend as the market decides to lay low.
- The global cryptocurrency market remains in the bearish territory with dropping volume and a valuation below $1 trillion.
- Bitcoin’s fear and greed index are at 20 points, signaling extreme fear this Saturday.
- The dropping trading volume suggests a low volume pullback technical correction likely to last until Monday.
- The long-term potential for Bitcoin, Ethereum, and crypto markets remains bullish, but the short-term sentiment is bearish.
It’s a common trend for Bitcoin and Ethereum prices to exhibit little volatility and price action over the weekend as global stock markets are closed.
Unsurprisingly, Bitcoin has followed tech stocks’ movements, especially the S&P 500 and the NASDAQ. As such, since stocks aren’t moving this Saturday, Bitcoin traders are also waiting on the sidelines for the next move.
There is no significant bitcoin news this Saturday, so we resort to taking a look at some technical indicators. Specifically, alternative.me’s fear & greed index is currently at 20, signifying extreme fear.
The market is quite bearish this Saturday, primarily due to the rapidly decreasing trading volume, so a flash crash to $18k for BTC is not out of the question.
Bitcoin is currently trading at $19,324, with a market cap of $370 billion. The 24-hour trading volume for BTCUSD is $29 billion, down 28% in the past 24 hours.
Ethereum’s price action is similar to Bitcoin’s. The ETH price remains above $1,300, while the trading volume is down over 40% to a low of $8.4 billion in the past 24 hours.
Ethereum is exhibiting what’s called a Low Volume Pullback. This is a technical correction toward an area of support, $1,300 in Ethereum’s case, where the crypto occurs on lower-than-average volume.
Ethereum’s merge continues to provide long-term potential for the crypto asset, but the short-term sentiment is highly dependent on Bitcoin and the global stock market’s movements.
Overall the crypto market is testing support this weekend. We’re likely to continue trading at current levels until Monday, when Bitcoin will follow the S&P 500, NASDAQ, and Dow Jones action. Ethereum will follow in Bitcoin’s footsteps as usual, likely slightly outperforming BTC if the price action is bullish.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!
The post Unsurprisingly, Bitcoin and Ethereum Hold Support With Little Price Action This Weekend appeared first on The Merkle News.Link to source