traders remain optimistic

The crypto market has experienced strong sales pressure led by Ethereum (ETH) and other major Layer 1 assets, which have fallen between 4% and 7% over the past 24 hours. The decline led to an increase in liquidations, but some popular traders are now speculating that a reversal to the upside is possible.

traders remain optimistic
Source: AdobeStock / Cagkan

Over the past 24 hours, Bitcoin (BTC) has fallen 3.6% to $ 39,400, while ETH has fallen 4.3% to $ 2,920. Over the past seven days, BTC and ETH have fallen by 7.7% and 9.4% respectively.

As of press time, more than $ 35 million in leveraged Bitcoin-long positions had been liquidated since midnight UTC Monday. For the entire crypto market, liquidations reached nearly $ 134 million in the same period.

Formation of a new support, but there are still risks

According to the on-chain analysis company GlassnodeBTC forms new support at the $ 39,000- $ 40,000 level following a decline in the $ 47,000 resistance zone in late March.

However, the company warned in a newsletter today that the correlation between Bitcoin and traditional risk assets such as equities remains high, suggesting that support levels will not necessarily hold if stock prices fall.

Source: Glassnode

A bearish feeling

The risk of a falling Bitcoin price is also reflected in the crypto index Fear & Greedwhich Monday morning indicated “extreme fear” among market participants.

The current reading marks a worsening of the mood from Sunday and further deterioration from last week.

Crypto Fear & Greed Index:

Source: Alternative.me

According to the latest report Intel & Insights of the crypto exchange crack going back to Friday, “aggressive buying interest” was seen in ETH and UST, stablecoin by Terralast week.

In addition, the document described the buying interest in BTC as “broad”, as prices fell around $ 40,000, promoting the theory of a possibility of support around that level.

The document also noted that activity on the Bitcoin network decreased during the week with a decrease of 4.4% in active addresses and a decrease of almost 2.1% in the number of transactions.

The bearish trend could also be felt by some popular crypto traders on Twitter, where one says that the market momentum “looks terrible”.

Michael van de PoppeCEO and founder of the crypto consulting firm Eightseems more optimistic: it has it declared this Monday on Twitter that the current price level is the key to the direction of Bitcoin in the short term.

“If this level is lost, I’m looking for new lows and potentially less than $ 30,000,” van de Poppe wrote, before saying he believes the odds are now stronger for an upward movement rather than a further downward movement.

“If you want to go far in Bitcoin, this is the zone,” said the famous trader.

Similarly, Crypto Ed, another widely followed crypto trader and educator, said in a video update on Monday that he remains optimistic about the Bitcoin price for the week.

“Price action will come later this week, and then I would actually expect some kind of rejection,” he said, noting that both RSI and MACD technical indicators are currently showing “bullish divergence.”

“As long as this trend continues, it’s another sign of a recovery coming,” Crypto Ed said.

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