Cryptocurrencies are clinging to important levels with the last of their strength

The total capitalization of the crypto market increased by 2.1% over the past day, recovering to 2.24 trillion, that is, to the levels of the beginning of the week. Yesterday, this figure was very close to the 2.0 trillion mark, but the restoration of traction in risky assets supported the demand for cryptocurrencies, providing about 12% growth from the bottom to the peak in the next four hours.

Bitcoin continues to Flirt with the 200-day average Bitcoin continues to flirt with the 200-day average

On the balance sheet, the cryptocurrency fear and greed index has won back another point, rising to 29.

It seems that the bulls are putting the necessary minimum effort to maintain a positive picture on the charts of the main cryptocurrencies. But there is no strength for more yet.

Bitcoin has been growing 1.2% over the past 24 hours, trading at $48.7K. The bulls managed to push BTC/USD into the area above the 200-day moving average, but it is clearly not possible to break away from it.

The fight of the Ether for the $4000 mark is not over The fight of the Ether for the $4000 mark is not over

Ether adds 3.5% per day, continuing to cling to the $4K mark. Due to the strong reaction of the market after the FOMC comments, the coin rate was pushed above this significant round level, but in the morning there are cautious sales again. Short-term traders should carefully monitor whether the former support has turned into resistance.

It seems that the main pair of cryptocurrencies was supported by a general increase in risk appetite in the markets after the FOMC announcements. However, investors should take into account that this upward movement in traditional financial markets was more of a reaction in the style of “buy rumors, sell facts”.

Fundamentally negative news for the markets about the acceleration of QE curtailment and greater determination in raising rates were embedded in the quotes in previous weeks. But, at the same time, long-term investors should not lose sight of the real tightening of financial conditions as a result of these steps, which will slowly but persistently reduce the demand for risky assets.

The main risk for the crypto market now is that in the last couple of months we have seen a real switching of the monetary regime, which promises to remove some of the demand for crypto.