Bitcoin price moved up by over 5 per cent in the last 24 hours, trading at $30,618 at the time of writing, according to data on CoinMarketCap. Bitcoin price has remained in the range of $28,000-$31,000 for last many days. There is at least one negative trend that may be a big cause of worry for Bitcoin supporters amid current crypto market gloom.
Bitcoin has witnessed nine consecutive weeks of negative returns, forcing many traders to take a risk-off approach. In fact, experts say that this is for the first in the short history of cryptos when Bitcoin has traded in the red for nine weeks in a row.
“For the first time in history, Bitcoin has traded in the red for the past nine weeks in a row. The asset has taken multiple support around $28,800 in the past and this time too, it is doing exactly the same and is not sustaining below the support,” analysts at ZebPay Trade Desk shared in a note over email.
“Technically, on a daily time frame, after making a ‘Long Legged Doji’ candle at the low, BTC is trading sideways in a range between $28,500 to $31,500. Breakouts on either side of the range will further decide the trend for the asset,” they added.
The largest crypto asset by market cap is don almost by 32 per cent this month. The BTC price jump of the last 24 hours indicate that bulls are buying the dip.
What to expect next
As the the market sentiment for Bitcoin and other cryptos remain in the “extreme fear” zone, immediate price recovery may not be expected.
According to WazirX Trade Desk, the next resistance for Bitcoin is expected at $40,000. “The daily RSI for Bitcoin has cropped up over the 40 level for the first time since the start of May 2022. The market sentiment for Bitcoin and crypto, however, continues to remain in the “extreme fear” zone,” they said.
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Experts say that the top crypto asset may take some more time to reach its strength. However, it may reach above $30,000 if buyers extend support.
“BTC continues to stay consolidated, but the largest crypto may take some time to reach its strength level. BTC may rise above its initial resistance at US$33,000 if buyers extend their support. This growth could keep the buyers active in the market. Edul Patel, CEO and Co-Founder, Mudrex, said.
No Bitcoin-Stock Relation?
Several crypto experts have been quoting a so-called correlation between stock market returns and Bitcoin as the reason behind the current fall in the price of the top crypto asset. In simple words, they have been claiming it is natural for crypto prices to fall in a falling stock market environment. However, this claim fell flat last week when the US and global stock markets rebounded while cryptos continued to crash.
“Though the U.S. and global stocks rebounded and closed the week by registering their first weekly gain since late March, the same wasn’t seen in the crypto markets,” Darshan Bathija, CEO and Co-Founder of Vauld told FE Online.
What about other cryptos?
Prices of alternative coins (altcoins) have increased in the last 24 hours, with assets like Ethereum, Solana, Cardano, BNB, Polkadot, Avalanche witnessing up to 12 percent jump.
Cardano(ADA) alone surged close to 10 percent as Iagon launched its Ethereum-Cardano bridge for the second largest stablecoin, USDC.
(Cryptos and other virtual digital assets are unregulated in India. They are considered extremely risky for investment. Please consult your financial advisor before making any investment decision)