The last several days have been extremely taff for the cryptocurrency market; cryptocurrencies have been suffering from heavy selling due to hawkish signals from central banks, and investors are worried that an aggressive monetary policy could tip the economy into recession.
The US central bank took a more aggressive stance to fight inflation and raised interest rates by 75 basis points at its latest meeting, and surging recession fears are crippling the appetite for risky assets.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
European Central Bank also signaled that it would change its policy in an effort to control inflation, while Christine Lagarde, president of the European Central Bank, said that digital cryptocurrencies are rife with speculation and that they are not worth anything.
This Saturday, Bitcoin fell below $20000 for the first time since 2020, and according to reports from Bloomberg, the largest cryptocurrency by market value has dropped for 12 days in a row.
Since mid-November, the cryptocurrency market has lost more than half its value, while Edward Moya, senior market analyst at Oanda, said that we could see new lows for the cryptocurrency market and Bitcoin. Edward Moya added:
Extreme volatility and a lack of liquidity in the Bitcoin market have made it increasingly difficult for large-scale crypto investors to continue holding onto their holdings. As a result, they’ll be forced to close positions on Bitcoin derivatives products because they don’t have enough collateral.
Bears in control of Polygon (MATIC)
Polygon (MATIC) has weakened from $0.66 to $0.34 since the beginning of June 2022, and the current price stands at $0.35.
The current support level for MATIC stands at $0.30, and if the price falls below it, the next price target could be around $0.25 or even below.
The first resistance stands at $0.50, and if the price jumps above this level, it would be a buy signal, and we have the open way to $0.60.
Fantom (FTM) is trading close to the $0.20 support level
Fantom (FTM) has weakened from $0.52 to $0.19 since May 23, and the current price stands at $0.21.
If the price breaks the support level at $0.20 again, it would be a strong “sell” signal, and the next target could be around $0.15.
Fantom (FTM) remains in a bear market, and traders should use “stop-loss” and “take profit” orders when opening their positions because the risk is currently high.
Theta (THETA) remains under pressure
If the price falls below the current support that stands at $1, it would be a “sell” signal, and the next target could be around $0.80.
The risk of further declines is probably not over for this crypto, but if the price jumps above $1.50, we have the open way to $2.
The cryptocurrency market is losing its value, Bitcoin went below $20000, and the risk of further decline is not over. This situation also negatively influences Polygon (MATIC), Fantom (FTM), and Theta (THETA).
Where to buy right now
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:
- Etoro, trusted by over 13m users worldwide. Register here >
- Capital.com, simple, easy to use and regulated. Register here >
*Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.