The cryptocurrency market is seeing a downturn after reaching a peak of $1.4 trillion in market capitalization. The two leading digital currencies, Bitcoin and Ethereum, are at the forefront of this decline. Bitcoin is currently trading at $36,656.75, a 15% decrease from last week, and Ethereum has dropped to $1,959.51, a 4% decrease.
Meme cryptocurrencies DOGE and SHIB have similarly experienced losses of up to 7%. These losses demonstrate the negative sentiment currently seen across the market. The Fear and Greed Index stands at 69, indicating that investors are feeling greedy, but with volumes dropping by 40% and key technical indicators leaning bearish, this may soon change. Reports of major wallets shedding over 50k BTC post-rally also suggest a continuation of slow movement in the cryptocurrency sector.
Traders and investors are closely monitoring the market metrics and analyses for signs of what the future holds. Technical indicators such as the Moving Average Convergence Divergence (MACD), Relative Strength Index (RSI) and Chaikin Money Flow (CMF) are all being watched closely, as well as the Korea Premium Index and Market Value to Realized Value (MVRV) ratio. It remains to be seen what direction the market will take in the near future.