Bitcoin Struggles To Breach $40,000 Level, Down 4% In Last 24 Hours
April 24 2022 - 4:20AM
NEWSBTC
Bitcoin isn’t the king of cryptocurrency for nothing. Most major
cryptocurrencies have dipped incredibly low on Saturday, and that
includes Bitcoin (BTC) but it doesn’t seem to budge. Bitcoin was
trading at $39,510 late Friday, down 4%, based on charts by
Coingecko, which signals dangerous waters in trading. Traders have
incurred monumental losses in equity with this trend. It’s a
consolation though that right now Bitcoin and other
cryptocurrencies are frequently linked to stocks in terms of
volatility in interest rates and market values. Suggested Reading |
Metaverse Tokens On Overdrive, Outpace Bitcoin And Ethereum The Big
4% Dip for Bitcoin Four percent might be too small to matter but it
does to Bitcoin and all other cryptocurrencies. With that big dip,
investors and traders are increasingly aware of the risks and have
decided to wait on the sidelines and see what happens next rather
than risk severe losses along the way. However, not taking action
at the right time can hurt and decrease market returns. Altcoins
also went further down compared to Bitcoin. Fundamentally, it is
typical for altcoins to underperform when pitted with other
cryptocurrencies especially BTC because it has a higher risk
profile in comparison to BTC. Despite Dip, Bitcoin Remains Stable
On a more positive note, technical indicators have shown that
Bitcoin is meant to be more stable at $38,500 even with the reduced
price momentum. Traders are always on the lookout for unexpected
spikes in prices so the downtrend with BTC may make it entirely
painstaking for options traders to generate profit in these erratic
price swings. BTC total market cap at $755. billion on the weekend
chart | Source: TradingView.com Suggested Reading | Move Over
Bitcoin – Is Shiba Inu The Next Crypto Gold? Current trends
circling the crypto and metaverse worlds can greatly impact how
traders behave. For instance, when BitMEX co-founder Arthur Hayes
said that there is an impending BTC price crash looking at around
$30,000, there followed traders selling their BTC. This caused
traders to sell their May and June option calls like crazy causing
the risk reversals to drop from -6% to about -10% for both
Bitcoin and Ethereum. Still A Bullish Trend With Bitcoin’s lowest
low registering the past couple of days, this also highlights the
minimized bearish sentiment on the side of options traders. Traders
being cautious at this point in time are fairly predictable.
Overall, the global cryptocurrency market trading activities have
been significantly reduced at $1.88 with very minimal gains seen in
the last 24 hours. Even so, the total trading volume rose to around
18%. While the very strict monetary policy has negatively impacted
speculative assets like cryptocurrencies and stocks, the indicators
clearly show that it will stay bullish for a little while. Featured
image from EPA-EFE, chart from TradingView.com
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