Most Cryptocurrencies Decline As UNISWAP Tumbles

Most of the largest cryptocurrencies retreated on Thursday, with UNIUSD seeing the biggest move, declining by 1.43% to $10.19. Seven additional currencies posted decreases Thursday. Dogecoin DOGEUSD shed 1.17% to 15 cents, and Bitcoin Cash BCHUSD fell 1.12% to $335.98.

Bitcoin has been losing 4.5% within last 24 hours, falling back to $43.3K. Ethereum lost 4.9%, and other leading altcoins fell in price from 3.5% (BNB) to 9.7% (Solana). The total capitalization of the crypto market sank by 4.7% overnight to $2 trillion. The Bitcoin Dominance Index added another 0.1pp to 41.3% on the back of more altcoins weakening.

The crypto-currency index of fear and greed grounded at 34 by Thursday morning, having lost 14 points and turning into a state of fear. This is the lowest value in last two weeks. After several days of sliding, the fall of bitcoin accelerated in the midst of trading in Europe, reaching two-week lows just above $43,000. The negative dynamics of the cryptocurrency market was facilitated by the fall of global stock indices. The published minutes of the Fed meeting showed tougher rhetoric than expected, which put pressure on all risk-sensitive assets.

News about the arrest of the servers of the darknet resource Hydra with the confiscation of 540 bitcoins, as well as sanctions against the Garantex crypto exchange could have a negative effect on the whole crypto market.

Bitcoin is stabilizing after a near-10% drop from the $48,000 resistance level earlier this week. The cryptocurrency is holding support above $43,000 and is roughly flat over the past 24 hours. The relative strength index (RSI) on intraday charts are rising from oversold levels, which could keep short-term buyers active into the Asia trading day. On the daily chart, however, the RSI is neutral with negative momentum, suggesting range-bound price action could persist for a few more days.

BTC will need to make a decisive move above $45,000 in order to yield upside price targets, initially toward $50,966. For now, the price recovery from the January low at $32,933 remains intact, especially given the positive momentum reading on the weekly chart.

Still, indicators on the monthly chart suggest upside is limited for BTC over the intermediate term. That means BTC will need to maintain stronger support above $37,560 to keep the three-month uptrend of higher price lows stable. A decisive break below that level could invalidate the recovery phase.

The number of bitcoins on exchanges has fallen to the lowest since August 2018. Investors have been withdrawing coins since the beginning of March, which is often taken as a signal to keep Bitcoin out of the market for a long time. This reduction in active supply often pushes the price up. However, now we are also seeing increased sales from institutionals.

Reports that Tesla’s CEO Elon Musk had become Twitter’s largest shareholder initially caused Dogecoin to soar more than 20%, as Musk had previously used the coin to pay for small Tesla goods. Potentially, there could be more applications for Doge in Twitter. However, by Thursday its price returned to the levels of the beginning of the week, still showing that this “dog” is not yet able to swim against the current, just as Bitcoin cannot become a meaningful fish against a big pond of stock markets.