After the United States stock markets closed on Good Friday to commemorate Easter, Bitcoin and other cryptocurrencies continued to see a sell-off on Monday as liquidity was disrupted following the closure of the stock markets.
Bitcoin is currently trading at 39,075 dollars as of this writing, after breaking the $40,000 level just some few hours before Sunday’s closure. Because of this weakening, practically all cryptocurrencies have experienced a drop in value, with Ether trading at 2,917 dollars after breaking through trendline supports at $3,026. According to Coinglass, the entire cryptocurrency market has seen a total of $237 million of selloffs in the last 24 hours, with 79,448 crypto traders becoming entangled in the chaos.
Bitcoin Market Still Ranging Over The Past Few Weeks
As a result of Monday’s decline, the stock market has been on a month-long downward spiral in which practically all of March’s gains have been entirely erased. In the last six weeks, the overall market capitalization of the cryptocurrency industry has plummeted from $2.16T to $1.812T, representing a 17.45 percent decline.
The onrush has indeed been attributed to a variety of macroeconomic developments, notably the Federal Reserve’s hawkish stance, which has caused market participants to panic. Others believe that the cryptocurrency market is merely an aspect of the continued decline in major shares indices.
That said, some people still find it odd that Bitcoin is still casting off irrespective of anticipation that the LFG and MicroStrategy’s historic BTC purchases in the last two weeks will push up the price. BTC whales seem to also be amassing enormous stockpiles of the crypto being relocated off of trading last week, with fewer addresses boosting their positions considerably throughout the decline.
The Deribit Analyst Predict A Further Dip/Dump In The Market
According to Deribit Analytics, the research arm of cryptocurrency trading Deribit, volatility has been a crucial factor in forming real-time investment decisions for cryptocurrency investors. While the enterprise had recognized the massive bitcoin purchases at 40,000 dollars, it cautioned that due to the illiquidity of the market this weekend, we could see a short-term surrender in the price.
Kevin Svenson, a well-known Bitcoin chartist, has also expressed concern about short-term liquidity. In a tweet sent out on Saturday, he highlighted that the current Bitcoin mindset was eerily similar to that of a $6k decline. While he believes Bitcoin is still positive in the short term, given the fact that the price has continued to show high lows in the weekly period, he believes a fall just below previous lower high is still inevitable.
According to him, “likely what will happen is that we will merely have one more resistance zone before regaining long term.” He continued, “What this message actually indicates is that I’m planning to Buy the dip.” He argues that there are now more elements at play.
A classic range that Cameron Fous, the founder and head trader of Krypton, a crypto-analysing platform, has predicted that Bitcoin would plummet even further, reaching $36,000. If the classic range that Cameron Fous has shared is anything to go by, Bitcoin will touch $36,000.
He, too, feels that Bitcoin’s decline is closely related to the movements of the US30 index, which, for the time being, is suggesting a further decline.