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Crypto Market Drops To Extreme Fear As Bitcoin Struggles To Hold $19,000

The crypto market sentiment has been on the decline over the last year and it has come in tandem with the decline in bitcoin price. Bitcoin, which moves the entirety of the crypto market most times, has had a tough go of it in recent times. Now, as the pioneer cryptocurrency continues to struggle to hold a good value in the market, sentiment has plunged towards 3-month lows.

Market In Extreme Fear

The crypto market is now entering what is one of the longest fear trends in recent history. Over the last six months, there has not been any significant recovery in market sentiment. The last time that the crypto market had come close to completely exiting the fear territory was back in August when there was some recovery in the market.

During this time, the price of bitcoin had seen a run-up that put it above $25,000. However, it had stopped just short of entering the green territory and has remained down since then. 

For three months now, market sentiment has remained muted and has not seen any positive movement. The score for last week came out to 22 which put the market firmly in the extreme fear territory, also following the same theme for the month of September.

Crypto market sentiment

Market sentiment in extreme fear | Source: alternative.com

It was expected that the market would see some recovery in the month of October but there hasn’t been much green in the market since then. The present score for the market sentiment is 20, which shows even more decline in investor sentiment. 

Bitcoin Carries The Market

Bitcoin has dominated the crypto market since its inception, even though the dominance is now lower than what it used to be. Nevertheless, the bitcoin price movement still determines the market direction most of the time and sets the tone for investor sentiment. Given this, for the crypto market to finally leave the fear territory, there would need to be a surge in the price of bitcoin.

However, one thing that comes with negative investor sentiment is the refusal to put money into the market. People are more likely to invest when prices are going up instead of down even though the latter is a better time to get into the market. 

Bitcoin price chart from TradingView.com

BTC fails to reclaim $20,000 | Source: BTCUSD on TradingView.com

Bitcoin’s current price does not spark confidence in the hearts of investors, hence the reluctance for investors to want to purchase cryptocurrencies. To do so, the price of the digital asset would have to cross $20,000 once more, which is currently not in the cards given that the cryptocurrency is trading below its 50-day moving average.

Bears are already mounting significant resistance at $19,600, and given the constant sell pressure on BTC, it is likely that the price of bitcoin will revisit $19,000 before testing the resistance at $19,600. But a successful test of this resistance level will see BTC aiming for the next significant resistance at $20,200.

Featured image from Genetic Engineering and Biotechnology News, chart from TradingView.com

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Despite Bear Market Uniswap Gains Significant Traction, What’s The Reality?

The past few weeks have brought a positive twist in the flow of events within the cryptocurrency market, especially for Uniswap. Lots of the crypto assets are gaining more value in their prices. This overturns after the severe crypto winter that puts lots of protocol at the edge.

Most witnessed drastic price drops up to 50% since January 2022. The last chaos in the crypto space was better imagined than described.

Additionally, the collapse of the algorithmic Terra stablecoin and its native token, LUNA, spiked the downward trend. Several investors lost millions of dollars, creating tension in the entire crypto industry. Some crypto service companies were thrown off balance as they struggled to be their ship afloat.

However, a few of them still went bankrupt with most of their depositors’ funds locked on their platforms. Some participants in the industry are beginning to lose confidence in digital assets as fear, uncertainty, and doubt gradually crept in.

All seems to be going progressively well for Uniswap, as its native token, UNI, increases its price value. The strength of its price increase has put Uniswap in ranking by market cap among the top 15 cryptocurrencies.

In addition, the Ethereum-based decentralized protocol has experienced a significant surge in value, reaching 150% over the past seven weeks.

Uniswap Sentiment Activity l Source: Sentiment

According to data from Santiment, an on-chain analytics firm, there has been an increased and substantial whale accumulation of the UNI tokens. This explains its recent price rally as well as the surging address activity.

Santiment reported that the Uniswap daily active addresses have risen to over 1,100. With the presence of strong address activity on the network, the protocol has the potential to sustain the current price action.

Uniswap Whale Addresses Push Positive Moves

Uniswap whale addresses have shown a positive move since the crypto crash of May 2022. The addresses have accumulated vast amounts of UNI tokens ranging in massive percentages. In their performance, whale addresses containing up to 100 thousand to 1 million UNI tokens have undergone massive accumulation within the past two weeks.

Also, Santiment noted that the level of transactions they deem to be prominent are those taking about $100,000 or more. It mentioned that such transactions are from the whales and moving back to those seen in May levels.

So, it stated that all the recent significant transactions from the whales are noticeable. This is because such moves accumulated just in the past week before the price climbed to $9.69.

Uniswap has recently gained massive traction recently l Source: UNIUSDT on TradingView

Besides its price rally, Uniswap has increased its active average trader returns. It currently recorded over 22.5% in its 30-day MVRV.

According to the report from Santiment, the current value is clearly above the danger zone. Despite Uniswap’s impressive price rally, Santiment has advised investors to tread with caution with the protocol.

Featured image from Pexels, charts from TradingView.com

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Crypto Market Drops Back Into ‘Extreme Fear’ As Prices Struggle

The crypto market has continued to struggle after running out of steam with its last rally. During the last lap of the year, the market as a whole is not doing too well, although prices of cryptocurrencies are way higher than they were this time last year. Nonetheless, there have been some interesting trends that have emerged with the market crash that has seen prices stagnate at this time.

The Fear & Greed Index has shown that market sentiment has gone into the extreme negative once again. With prices of top assets like bitcoin and ethereum trading below important support points, sentiment has fluctuated widely in the market but has mostly stayed in the negative. This time around, market sentiment has dropped low and landed in the ‘extreme fear’ territory.

Related Reading | Algorand, Solana, And More Lead List Of Biggest Losing Altcoins

Crypto Market Basking In Fear

The crypto market has spent a good portion of the month of December in the fear territory. Market prices haven’t been the most favorable for the month and investors remain incredibly wary of getting into the market at such a time. Others have however seen this as a buying opportunity like in the case of MicroStrategy, which bought an additional 1,434 BTC bringing its total holdings to 122,480 BTC.

The aggregate for the month of November came out to neutral on the sentiment side of things after a tumultuous end to an otherwise wonderful beginning of the month. That has spilled into December as Christmas rolls around.

Market goes into extreme fear | Source: alternative.me

Yesterday the Fear & Greed Index had peaked at 29 on the chart, putting the market in the fear territory. This was up a bit from last week where the market spent long stretches in extreme fear. Today, market sentiment again rolled into the extreme fear territory with a low 23 on the chart.

The index being this low shows that there are low buying pressures in the market and high selling pressures. Sell-offs are still underway in various digital assets that have seen their prices dip into the red. As the market heads into the weekend which is usually characterized by low volatility, will the market be able to pull itself out of extreme greed?

Bitcoin, Ethereum Suffer Losses

Bitcoin had made a splash in the market when it had hit its new all-time high slightly above $69,000 at the beginning of November. This had sent the crypto market on what would be a memorable bull run as Ethereum came close to hitting the $5,000 mark not too long after. But this would only be short-lived as the downtrend had begun not too long after.

Related Reading | Crypto Bull Cathie Wood Says Ethereum Is More Undervalued Than Bitcoin

For Bitcoin, the digital asset had lost as much as $10,000 in a single day that sent it towards the low $40,000s. Ethereum on the other hand had held out for a while but succumbed to the downtrend in time.

Bitcoin is now trading well below $50,000 after failing to hold above this price point this week. Ethereum is now trading below $4,000, a crucial support point for the digital asset. At the time of writing, bitcoin is trading at $47,141 and ethereum is trading at $3,826.

Crypto total market cap at $2.16 trillion | Source: Crypto Total Market Cap on TradingView.com
Featured image from Bitcoin News, chart from TradingView.com