Bitcoin (BTC) price remains stuck in what traders hope is a downtrend in the short term, as rumors on April 18 of “unnamed financial institutions” targeting cryptocurrency money laundering were not overcome. …
Data from Cointelegraph Markets and TradingView shows that since BTC price fell below $ 51,000 on April 18th, it has traded in a range of $ 52,500 to $ 57,500, creating a bearish pattern of lower highs and lows.
4 hour chart BTC / USDT. Source: TradingView
Although regulatory issues may have played some role in the current downturn, there have been several other significant events affecting Bitcoin’s recovery.
According to Mika Spruel, managing partner and chief investment officer at S2F Capital, the 20-25% drop in Bitcoin’s hash rate caused by mandatory blackouts in Xinjiang, China over the weekend has forced around 80% of miners not to contact this region. ”
Spruill sees this drop in retail rates, combined with the record-high open interest rates on bitcoin futures, as a catalyst for “an ideal scenario to seriously de-leverage”.
As for what’s next for Bitcoin, Spruel noted the growing bullish sentiment among analysts and traders “after a lot of excessive speculation in the market this month has been affected by the price decline.”
“Intranet surveys look incredibly healthy at the moment, thanks to the increasing growth of new organizations joining the network, increased user registrations on major exchanges like Binance, and the continued optimistic flow of online exchanges in Bitcoin and Ethereum.”
Robots may dominate the current Bitcoin trading area
David Lifshitz, ExoAlpha’s chief investment officer, thanked Spruill Points, and also cited regulatory concerns in the United States and the stated ban on cryptocurrencies in Turkey as “the battle that lit the fires of an over-leveraged trading environment” based on permanent swap financing. … assessment before and after diving.
According to Lifshitz, Bitcoin is now back in the “twilight zone from $ 50,000 to $ 60,000,” which features institutional buyers with falling orders of $ 50,000, retail FOMO – fear of getting lost – over $ 60,000 and the “game” trading robots. Table tennis in the area between them. ”
After the drawdown, Lifshitz identified temporary support for BTC in the middle of the region, from $ 54,000 to $ 55,000, but he still thinks it is “too early to tell if the decline is over”.
Without a strong catalyst, it appears that the breakout is above $ 60,000 at the moment, and a breakout below $ 50,000 could send Bitcoin down to $ 30,000. Traditional markets that are showing signs of exhaustion can also affect the recovery of cryptocurrency markets. ”
Ethereum has reached a new high
Bitcoin’s current downtrend has opened the door for Ether (ETH) to enter the spotlight, with the highest altcoin after market value reaching a new full-time high of $ 2,644, with a trading volume of $ 47.3 billion.
4 hour ETH / USDT chart. Source: TradingView
Ether’s growth was accompanied by a 25 percent increase in the price of Maker’s MKR, one of the oldest decentralized financial ventures on the Ethereum network, to a new full-time sum of $ 4,980.
Solana SOL shares have also performed well recently, rising 26% overnight, hitting a new full-time high of $ 39.72.
Cryptocurrency total market cap is now $ 2.02 trillion, and Bitcoin’s dominance is 49.6%.