This year, inflation, the fear of a recession, and a hawkish Fed added further downside pressure.
Since a November all-time high of $3,009 billion, the total crypto market cap tumbled to a May low of $1,082 billion before steadying. With the total market cap still down by $1,809 billion, opportunities are there for investors able to withstand the pressures of crypto trading.
We have chosen three cryptocurrencies for 2022.
Bitcoin is the largest cryptocurrency by market cap and draws interest from retail and institutional investors. Significantly, bitcoin is not only the bellwether of the crypto market but also the most stable, supported by a loyal investor base commonly referred to as bitcoin whales.
Since hitting a November 10 all-time high of $68,979, bitcoin tumbled by 62.5% to a current year low of $25,836 before finding support. Year to date, bitcoin was down 21% to $29,680.
With bitcoin adoption gaining traction in multiple jurisdictions, bitcoin remains the target cryptocurrency for both seasoned and novice investors.
The technical indicators remain bearish for now.
Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. Bitcoin sits below the 50-day EMA, currently at $30,092. The 50-day pulled back from the 100-day EMA. The 100-day EMA held steady against the 200-day EMA, BTC neutral.
A move through the 100-day EMA, currently at $30,301, and a bullish cross of the 50-day EMA through the 100-day EMA would signal a shift in sentiment.