BTC is back above 17K, but overall cryptocurrency market capitalization is down about $840 billion
After cooling tensions and overall market sentiment, the overall crypto market edged higher in the second part of last week. In contrast, during this week, it was primarily flat, with Bitcoin trading at around 17,000.
In China, finally, the government relaxed some of its Covid restrictions and abandoned its zero-Covid policy. This news helped the market sentiment to grow in the second part of last week; however, over the previous seven days, overall market capitalization decreased by 1.5% to almost $840 billion.
While it seems like the downtrend is ending, and now we are in a natural market waiting for a bullish excuse, this negative sentiment, which started in the year's second quarter, needs a more substantial reason to grow. It has been more than six months since we entered a market condition called crypto winter, and another notable collapse happens anytime we want to get out. FTX and recent hacks are some examples.
On the other hand, getting closer to the end of the year with this negative natural sentiment, we also have some good news. More countries are issuing their CBDCs, or positively changing the regulation for crypto lovers. Also, companies such as Porsche are getting into the Web3 and NFT space.
Bitcoin (BTC) price dropped 0.7% on the week, stabilizing near the $17,100 level. Earlier today, BTC was trading above $17,200. In the main timeframes, BTC trading is natural. Currently, the central pivot is 19,725; it is hard to count on bulls below this level.
