Source: Thought Catalog – Unsplash
- The entire cryptocurrency market has entered the red zone, as Bitcoin bulls fail to sustain momentum at the $30,000 price level.
- Ethereum anticipated reclaiming previous levels after dropping below $2,000.
This week was a crucial one for the crypto market, particularly because of the unexpected highs and lows. Leading cryptocurrencies surged and dipped at different times, leading to a change in market sentiments. At this time, the entire cryptocurrency market is blinking in red, and expectations are sideways.
Bitcoin, the most valued cryptocurrency by market cap, has not been spared. The asset has been in critics’ books since the start of the year, as many weigh the possibility of Bitcoin reclaiming previous highs. Although Bitcoin bulls have done enough to push the asset to levels last seen in 2022, market players are divided on whether or not buying Bitcoin at this time is profitable.
Following the massive price dips from Thursday, Bitcoin slumped and lost momentum above $30,000. The big bull initially dropped to a price of $29,100, before shedding a significant number of gains. Over the last 7-days, Bitcoin has lost 10.40 percent of its value. Within the last 24 hours and 1-hour time frame, Bitcoin is down by 3 percent and 0.23 percent respectively. At report time, the apex crypto trades at a price of $27,275.
Analyst insists market is optimistic in the long-term, despite the current dip
Speaking on Bitcoin’s current movement, Twitter user Negentropic, the co-founder of Glassnode maintains that Bitcoins price action alliance with expectations, based on the fact that implies volatility and realized volatility are still closely aligned. He claims that the recent drop in Bitcoins price was a move that was already anticipated to test the price action channel as depicted on the chart.
He also gives insight into the recent long squeeze from $30,000 to the lower $29,000 area, which led to the liquidation of $260 million worth of loan positions in the previous days.
The Bitcoin Risk Signal is at 0 (figure 4) – looking a bit shaky in the short run – despite the recent volatility, indicating a lack of panic selling. The Fear and Greed Index retracted from the greed zone to a neutral position at 52 points. Meanwhile, the current market environment, characterized by unrealized profits outpacing unrealized losses (see NUPL on glassnode), implies optimism in the medium and long term.
Similarly, Ethereum (ETH) has been hit by the bearish wave. Ethereum currently trades at a price of $1,849, as weekly losses surge past 12 percent. There has been strong selling pressure and ETH bulls are yet to clear up 24-hours losses, which is nearing 4 percent at report time.
However, key players like BitMex’s Authur Hayes and similar crypto proponents have hinted that altcoin season has arrived. Around this time, altcoins are expected to outperform Bitcoin, and as such an Ethereum bounce back is not unlikely.
Allow me to reintroduce myself. My name is ALTSZN!!! pic.twitter.com/yIzE7Zxpaw
— Arthur Hayes (@CryptoHayes) April 14, 2023
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