The path of least resistance remains to the downside at this point
The bitcoin price peaked just below the $52,000 figure earlier in the week and has been struggling to regain upside momentum since then. After a solid drop on Thursday, the BTCUSD pair has settled marginally above $48,000 on Friday, with bearish risks persisting.
This week, the largest cryptocurrency by market capitalization derives support from the 200-DMA, currently at $46,500. As long as this moving average stays intact, the downside potential looks limited. However, it seems that the path of least resistance remains to the downside at this point.
To shrug off the current pressure, the coin needs to stage a decisive bounce from the current levels and settle above the $50,000 psychological figure in order to regain the $52,000 barrier eventually. Of note, as a result of the recent drop, bitcoin dominance dipped below 40%, to 37.8%, hitting the lowest level in nearly four years.
Meanwhile, Ethereum, the second-largest cryptocurrency by market capitalization, remains volatile these days. On Thursday, ETH briefly plunged to one-month lows around $3,460 before bouncing back to the $4,000 figure. Ahead of the weekend, the prices were clinging to this figure, struggling for direction after a rejection from fresh all-time highs registered at $4,800 at the start of the week. if the prices manage to steadily settle above $4,000 in the short-term, the mentioned top will come back into the market focus.
In general, sentiment in the cryptocurrency market looks unstable now, with volatility persisting in the global financial markets as well. The Omicron coronavirus variant keeps dominating news headlines, making investors stay alert and cautious as the rising number of cases fuels worries about the outlook for the global economy while the Federal Reserve is about to announce a hawkish decision on monetary policy.