Bitcoin’s decline is oversold, but it’s too early to talk about a new rally
Bitcoin has rebounded 5% in the past 24 hours, trading at $20,800. Ethereum has recovered 6.4% to $1130 in the same time frame. Leading altcoins in the top 10 are adding from a modest 3.5% (XRP) to an impressive 15% (Solana). Total cryptocurrency market capitalisation, according to CoinMarketCap, rose 5% to $914bn. Tuesday, the cryptocurrency fear and greed index was unchanged at 9 points (“extreme fear”).
Bitcoin managed to hold above the $20,000 round level on Monday amid weak trading activity due to the US holidays and attracting enough speculative demand after dipping below the meaningful round level. This recovery removes some of the extreme oversold nature of the cryptocurrency.
Still, it will be too early to talk about a long-term reversal: all negative fundamentals remain. In our view, until sharp monetary policy tightening becomes the norm, financial market pressures can quickly negate bounces in cryptocurrencies. Even if we have seen a bottom, it could still be months before the next sustained rally.
Bitcoin’s return above $20,000 does not mean it has hit “the bottom”, warned renowned cryptocurrency critic and gold supporter Peter Schiff. Kraken exchange marketing director Dan Held said bitcoin had chosen the most pessimistic scenario possible amid rising inflation and an impending recession.
According to him, “those who survive will get HODLer status”. El Salvador President Nayib Bukele urged the cryptocurrency community not to panic as the market falls. According to him, the decline is relatively standard, and market participants must be patient. JPMorgan Bank said that the rising share of stable coins in the total market capitalisation of the crypto market indicates its growth potential. Changpeng Zhao, chief executive of cryptocurrency exchange Binance, denied media reports that the platform bought more than 100,000 BTC on a falling market.
Top Cryptocurrencies with Price Predictions
| # | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | 7d price change | |
| 1 |  BTC |
Bitcoin predictions | 75.2% | 48 | $28 279.47 | 0.07% | 13.63% | $546 494 314 501 |  |
|
|---|---|---|---|---|---|---|---|---|---|---|
| 2 |  ETH |
Ethereum predictions | 83.6% | 31 | $1 799.37 | -0.44% | 7.08% | $220 196 375 480 |  |
|
| 3 |  USDT |
Tether predictions | 94.4% | 1 | $1.001852 | 0.03% | -0.30% | $77 579 753 841 |  |
|
| 4 |  BNB |
Binance Coin predictions | 78% | 46 | $326.48 | -3.19% | 5.28% | $51 548 167 677 |  |
|
| 5 |  USDC |
USD Coin predictions | 94.4% | 2 | $0.999094 | 0.05% | -0.02% | $35 208 468 704 |  |
|
| 6 |  XRP |
XRP predictions | 86.8% | 15 | $0.442825 | 11.63% | 20.07% | $22 562 333 716 |  |
|
| 7 |  HEX |
HEX predictions | 63.6% | 81 | $0.105163 | 5.10% | 28.30% | $18 236 394 788 |  |
|
| 8 |  ADA |
Cardano predictions | 76.4% | 51 | $0.371643 | 7.97% | 10.64% | $12 903 136 163 |  |
|
| 9 |  STETH |
Lido stETH predictions | 96% | 1 | $2 941.39 | -0.40% | -3.32% | $10 258 752 564 |  |
|
| 10 |  MATIC |
Polygon predictions | 76.4% | 48 | $1.15 | -0.34% | -2.20% | $10 039 890 799 |  |
|
| 11 |  DOGE |
Dogecoin predictions | 71.6% | 55 | $0.075145 | 1.86% | 2.48% | $9 969 588 590 |  |
|
| 12 |  SOL |
Solana predictions | 73.2% | 56 | $22.53 | -1.79% | 9.39% | $8 642 061 823 |  |
|
| 13 |  BUSD |
Binance USD predictions | 93.2% | 1 | $1.000025 | 0.01% | -0.03% | $8 119 883 434 |  |
|
| 14 |  DOT |
Polkadot predictions | 75.6% | 50 | $6.29 | 0.46% | 1.61% | $7 344 673 141 |  |
|
| 15 |  WTRX |
Wrapped TRON predictions | 84.8% | 22 | $0.067252 | 3.83% | 1.45% | $6 837 900 813 |  |
