This year, inflation, fear of a recession and a hawkish Fed have added further downward pressure.
To make matters worse, the market experienced its first top ten cryptocurrency crash. The collapses of TerraUSD (UST) and Terra LUNA have led to more calls for greater regulatory scrutiny.
From an all-time high of $3.009 billion in November, the total crypto market capitalization fell to a low of $1.082 billion in May before stabilizing. With the total market capitalization still down by $1.809 billion, opportunities are there for investors who can withstand the pressures of crypto trading.
We have chosen three cryptocurrencies for 2022.
These are bitcoin (BTC), Binance Coin (BNB) and Solana (SOL).
Bitcoin is the largest cryptocurrency by market capitalization and is attracting interest from retail and institutional investors. Significantly, bitcoin is not only the barometer of the crypto market, but also the most stable, backed by a loyal investor base commonly referred to as bitcoin whales.
Since hitting an all-time high of $68,979 on Nov. 10, bitcoin has fallen 62.5% to a year-to-date low of $25,836 before finding support. Year-to-date, bitcoin is down 21% to $29,680.
With bitcoin adoption gaining traction in several jurisdictions, bitcoin remains the target cryptocurrency for both seasoned and novice investors.
Technical indicators remain bearish for now.
Looking at the EMAs and the 4 hour candlestick chart (below), this is a bearish signal. Bitcoin sits below the 50-day EMA, currently at $30,092. The 50 day pulled out of the 100 day EMA. The 100-day EMA remained stable against the 200-day EMA, neutral BTC.
A move into the 100-day EMA, currently at $30,301, and a bullish cross from the 50-day EMA to the 100-day EMA would signal a shift in sentiment.