Bearish sentiment prevails in crypto market amid Israel-Hamas conflict

Crypto market overview: The crypto market continued to slip for the third consecutive day following the high uncertainty in the geopolitical world order. The direct impact of Hamas’s attack on Israel was visible on the crypto charts, leading Bitcoin to lose the psychological mark of $27,000 and it is currently trading above $26,800.

The crypto fear and greed index also fell by 2 points in the last 24 hours, taking the overall market sentiment towards the ‘fear’ side of the scale. 

Crypto Fear and Greed Index | Image credit: Alternative.me

Shubham Hudda, Senior Manager, CoinSwitch Markets Desk, while talking to Republic about the crypto market movement, said, “BTC continued to slide for 3 days in a row after touching the all-important $28,500 mark. Even though the $26,500 mark is currently acting as support, any further decline may again lead to a further sell-off that is likely to take BTC down to $24,000 or beyond.

“Investors across financial markets, including crypto, are looking forward to the US CPI data, which is expected to be out today. As US stock indices have traded bullish one day before the data, investors are hoping to see a positive sign. Any sign of larger-than-expected inflation data is likely to put pressure across markets, taking crypto alongside,” Hudda added.

Leading crypto trading below 50 and 200 EMA daily

CoinDCX Research Team addressed the downward movement of the crypto, crediting it to the vague moves on rate hikes. CoinDCX said, “Both Bitcoin (BTC) and Ethereum (ETH) have experienced a consistent four-day decline, indicating a bearish trend in the market. From a technical perspective, it's notable that both cryptocurrencies are currently trading below the critical 50 and 200 EMA Daily, with BTC below $27,000 and ETH below $1,575.”

“Bitcoin has reached its weakest level this month with an almost 2.50 per cent decrease in price this week. The market continues to indicate a ‘bearish’ outlook as Bitcoin’s moving averages indicate a ‘Sell’ sentiment. The Fed’s unclear moves on a potential rate hike are adding to the uncertainty in the market. Among altcoins, the REQ token has broken out of its pattern and is indicating a buildup in volume,” CoinDCX added.

Strong bearish presence in the market

Edul Patel, Co-Founder, Mudrex told Reublic, “Bitcoin's price fell below $27,000 as investors await September's US inflation data. This price movement indicates a strong bearish presence in the market. Bitcoin must now surpass the $27,000 resistance level, or it might find support near $26,600. Since the beginning of this year, Bitcoin has seen a remarkable 61.42 per cent increase in its price. Meanwhile, Ethereum is trading at approximately $1,560.”

Sudeep Saxena, Co-Founder, Coin Gabbar, said, “Bitcoin and several prominent alternative cryptocurrencies face downward pressure due to the release of the September Producer Price Index report, which indicates a substantial increase in wholesale inflation at 0.5%, surpassing market expectations.”