Cryptos take a breather, but Bitcoin still shows no sign of strength

(Sharecast News) - Slight rises in the cryptocurrency market. Bitcoin (BTC) has gained 0.2% in the last 24 hours and is hovering around $26,000, while Ethereum (ETH) has risen another 0.2% and is seeking to recapture $1,700. Digital assets remain lethargic and with little desire and ability to rise, unlike traditional markets, which were encouraged on Monday and seem ready to repeat the move today, on Tuesday. In fact, most experts point out that the same factors that have caused this situation of apparent inaction (lack of news on ETFs, inflationary alerts from the Fed...) could put more pressure on cryptos´ prices.

From a technical point of view, Javier Molina, senior market analyst at eToro, believes that Bitcoin is destined for more falls. "Having lost the $27,000 that we have been marking as the first support, there will be an extension of the fall with the next control level at $25,000," the expert stated emphatically.

"The technical picture for Bitcoin remains bearish on weekly timeframes, as the price is below its 200-week average and outside of its ascending channel. The most likely short-term outlook is for a decline to the $23.9-24.6K region," commented Alex Kuptsikevich, analyst at FxPro.

All in all, Molina believes that the queen cryptocurrency continues to move in "accumulation zones for investors who understand the value proposition, assume the risk of the operation and maintain the maximum positioning below 10% of the total portfolio... always within a DCA ('Dollar Cost Average') strategy".

"The area to watch now is around $25,000. If that level holds, what happened before makes sense and the objective is to regain $27,000 first and $28,500 as a key area. If it succeeds in doing so, it will go straight to $31,000. Conversely, losing $25,000 opens the way to $23,800 first and $21,500 after that," the eToro strategist warned.

In this regard, market sentiment seems to remain rather bearish. The Fear & Greed Index shows that the scenario is still "fear" and that it stands at its lowest reading since last January, shortly after the bankruptcies of platforms like FTX and all the uncertainty surrounding cryptoassets. Most experts point out that this scenario usually provides good buying opportunities for those who dare, although analysts remain unconvinced by the lack of catalysts for digital assets.

Conversely, JP Morgan analysts believe that cryptos have little downside ahead after most long positions have been liquidated. "As a result, we see limited pullback for cryptomarkets in the near term," they explained.

On the corporate front, Digital Currency Group has reached an agreement with creditors of bankrupt crypto-lender Genesis to repay up to 90% of what is owed.

In other market news, highlights include rises of nearly 1.5% in Cardano (ADA) and 1.1% in Dogecoin (DOGE). Solana (SOL) falls moderately and Tron (TROX) drops 1%.