The recovery we saw on the cryptocurrency market last week gave some investors hope that we might enter a full reversal mode and get back to $25,000 for Bitcoin. But today’s rejection and plunge below $22,000 shows that the digital gold is not yet ready.
Main reason behind rejection
As usual, the lack of inflows into the market and a depressing macro environment are pushing Bitcoin down and not letting it enter recovery mode. The recovery of altcoins on the market could have confused crypto traders and investors who waited for a recovery to begin.
Technically, Bitcoin is also not feeling well as it fails to break through the bearish flag formed during a sharp downtrend on the market. The massive selling pressure makes the asset extremely oversold, which causes a short-term consolidation that transforms into a flag or a pennant.
A breakthrough in either direction would give us a signal about the upcoming movements of Bitcoin on the market, but the lack of trading volume sent BTC back inside the flag. As for now, Bitcoin is continuously falling down and has already tested the $21,500 threshold. Luckily, traders were able to push the price of the first currency a bit higher. It is not consolidating at $22,000.
Ethereum is still leading rally
While the fate of the current Bitcoin recovery remains unclear, Ethereum is not stopping on the market at all as it breaks through the 50-day moving average resistance like it is nothing and then gains a foothold above $1,500.
The catalyst of the current rally was the date release of the upcoming Merge update, which immediately attracted a massive volume of investment into Ethereum and projects that will benefit from the upcoming fundamental upgrade.
Lido Finance is capitalizing on success
LDO token that previously gained around 200% to its value in a matter of days is now the subject of a vote that will decide the fate of 20 million tokens that Lido DAO is planning to sell for $29 million to diversify its treasury and get ready for the bear market.
The platform has already found a buyer and is planning on making the deal via OTC trade. The price of the token had already tumbled by around 20% as users are afraid of incoming selling pressure.