Has the “crypto winter” arrived? Bitcoin drops back to $ 60,000, Ether under pressure.

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Bitcoin and Ether were reaching levels not seen in more than a week on Tuesday, with some pointing to comments from a Twitter executive who ruled out cryptocurrency investments, as an analyst questioned whether the bull market was on the market. point to take a break.

The price of BTCUSD bitcoin, -7.82%, fell 7% to $ 60,987 and that of Ether ETHUSD, -9.61% on the Ethereum blockchain, fell 8% to $ 4,316. Similar losses were observed across the industry.

A choppy rally that began in early November saw bitcoin peak at $ 68,990 and send Ether to an all-time high of $ 4,865.57.

CoinDesk reported that the crypto sale began in Asia after investors learned about comments from Twitter’s TWTR, Ned Segal, chief financial officer of + 1.34%, who said he “had no meaning ‘for the microblogging site to invest the company’s money in crypto assets right now.

“We [would] we have to change our investment policy and choose to hold more volatile assets, ”Segal said in an interview with the Wall Street Journal on Monday. He said the company prefers stocks, which are less volatile.

This is how one analyst said that a significant technical level is currently at stake for assets.

Naeem Aslam, chief market analyst at AvaTrade, said the price slippage could be a sign that the bulls are losing power. He said investors should watch if bitcoin crosses below its 50-day simple moving average (SMA) of $ 58,000, a potential support for prices. If prices stayed above that level, it could see a substantial rally, he said.

Here is his 50-day SMA chart:

AvaTrade

The “biggest fear among crypto traders is if the crypto winter is here,” said Aslam, referring to a long period of weakness for cryptocurrencies that occurred after the highs reached in 2017.

“No one wants to see another crypto winter because it’s hard to forget the dire consequences of the previous one. Plus, what traders were hoping for was a strong recovery, especially since this time of the year. year, we’re generally seeing a strong recovery for cryptos – of course, with the exception of the crypto winter, ”he said in a note to clients.

Aslam added that cryptos tend to rally over 80% during this time of year, offering this monthly chart:

AvaTrade

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