Cryptocurrencies continue to move lower in steps. They made a strong bearish reversal in November last year which continued until January, followed by a retracing period in March. In April the decline resumed again while during most of May digital coins consolidated again.

But the bearish momentum resumed again earlier this month and on Saturday, Bitcoin (BTC) slipped down to around $17,749, and Ethereum (ETH) fell to below $900, as the sell-off in the crypto market accelerated. The two most popular crypto coins were down more than 35% at some point last week, as both broke below symbolic price barriers of $20k,000 and $1,000 respectively.

Bitcoin Daily Chart – No Follow Through on Yesterday’s Reversal

BTC holding above $20,000 after the dip

This is the latest sign of turmoil in the crypto industry amid wider turbulence in financial markets. Investors are selling off riskier assets as central banks keep raising interest rates with the pretext to fight increasing inflation. Although this is not working as prices keep increasing, instead, it is only sending economies into recession. Now we are hearing calls for crypto regulation due to the volatility, which still lacks reasoning.

On Friday, US Treasury Secretary Janet Yellen said that the US Congress must take action on digital asset regulation. Besides her, Bill Gates also added that the crypto market is based on the “greater fool” theory, which again isn’t true. This is the foundation for a decentralized financial market where people can lend and borrow from each other, without the need for intermediary banks, and earn the benefits for themselves.

But, the was on cryptos continues and the pressure remains bearish overall. Yesterday’s reversal in the crypto market is not continuing today, so buyers still seem weak and uncertain. Although, let’s wait until the end of the day today and see if they can pick up the bullish momentum again.

Bitcoin BTC Live Chart