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Bitcoin drops below $47,000 and cryptocurrency market opens in red

Bitcoin drops below $47,000 and cryptocurrency market opens in red

The red tide flooded the cryptocurrency market this Tuesday (4). According to CoinMarketCap, the market value of cryptocurrencies operates at a low of 0.86%, quoted at US$ 2.24 trillion.

Bitcoin (BTC) opened the day quoted below US$ 47,000, amending the second consecutive devaluation. Today's drop is 1.35%, which has taken its price to $46,670.Ethereum (ETH) drops 0.57% and operates at $3,811.

The largest devaluations in the Top 20 reached Terra (LUNA) and Avalanche (AVAX) , with decreases of 5.39% and 4.02, respectively. On the other hand, Algorand (ALGO) and Chainlink (LINK) registered increases of 2.78% and 6.4%, respectively.

BTC's market dominance reached 37.3%, while ETH reached 19.2%. The total volume of the market registered an increase of 5%, reaching US$ 92.63 billion.

Falling price, indicators of hope

Despite the sequence of devaluations, the market continues operating in positive terms in 2022. According to Coinglass, the BTC still registers a 0.99% increase in the year.

That is, it is a relatively optimistic start after the sharp drop of 18.9% in December. On the other hand, market lateralization is not reflected in sales. The big BTC addresses aren't accumulating, but they haven't registered relevant sales either.

Other addresses continue to accumulate little by little, such as the case of the third largest whale in the market, which acquired 456 BTC on Monday (3). The investor bought at an average price of US$46,353 per BTC, resulting in the purchase of R$118 million.

Simultaneously, BTC reserves on exchanges are close to their historic lows. According to CryptoQuant, only 2.3 million BTC are on brokers' balance sheets. This reinforces the thesis that long-term investors are not getting rid of their BTCs.

Finally, the Crypto Fear & Greed Index registered a drop of six points, going from 29 to 23, which indicates extreme fear of the market. For many analysts, this level usually opens up excellent buying opportunities during the downturn.

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