Bitcoin has reached a critical support zone, and if there is a bounce from this level, ALGO, XMR, XTZ and THETA could move higher in the short term.
The S&P 500 and the Nasdaq have declined for five consecutive weeks, indicating that traders continue to reduce exposure to risky assets. Bitcoin’s (BTC) close correlation with United States equity markets has resulted in its price remaining under pressure.
Bitcoin has extended its decline during the weekend and is now on track for its sixth successive weekly loss, the first such occurrence since 2014. The weakness in Bitcoin has pulled down the entire crypto markets, whose market capitalization has dipped below $1.6 trillion.
When the sentiment is bearish, traders sell on every negative news. The de-peg of Terra’s U. S. dollar stablecoin TerraUSD (UST) also appears to be increasing sell pressure across the crypto market.
After Bitcoin’s six consecutive weekly closes in the red, is it time for a recovery? Let’s study the charts of the top-5 cryptocurrencies that are showing signs of stabilizing in the near term.