Falling and falling, when will the cryptocurrency led by Bitcoin end?

Since the new year, cryptocurrencies have experienced a new round of bloody storms. Bitcoin, the weather vane of cryptocurrencies, once fell below $35,000 per piece yesterday, creating a new low in 4 months. This year, it has fallen by nearly 30%, while the decline in the past week It is close to 20%, creating the longest decline since 2018. The main reasons for this round of Bitcoin decline are as follows:

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1. The Fed tightens monetary policy. The tightening of liquidity is an important incentive for Bitcoin’s current decline. The recent decline in US stocks has prompted investors to unwind their cryptocurrency positions to cover their positions and limit overall losses. If the Fed’s interest rate resolution this week continues to be hawkish, it will be very hawkish for Bitcoin. will continue to be negative.

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2. Global regulation is tightening. Since the beginning of this year, many countries have become more and more strict in the supervision of Bitcoin from mining, trading to online marketing "industrial chain", and cryptocurrencies are facing higher global regulatory pressure.

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3. Miners have a strong selling sentiment. Miners who rely heavily on currency prices have also suffered heavy losses. At present, many mainstream mining machines on the market have all broken through the cost price of mining. Electricity accounts for more than 100%, and the loss is immediately after startup. The sales volume of miners is at a historical high, and the selling sentiment is strong.

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4. Panic spreads. The data shows that the virtual currency market panic and greed index is 19, indicating that the market sentiment is extremely panic, while the Bitcoin RSI14 index shows that the selling power in the market is stronger, and the market is bearish.

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To sum up, the cryptocurrency market led by Bitcoin is still not optimistic, and mainstream currencies such as Ethereum and Litecoin are more affected. From a technical point of view, the current Bitcoin has fallen below the important support level in the early stage. The current short position is strong, and there are many stuck disks. After falling below the strong support of 40,000 points, the downward momentum of the market is still strong, and the next strong support level is at the 30,000-point mark. Before the basic full and no major changes, it is recommended that the main selection strategy is still to be short on rallies.