Market situation: recovery of bitcoin and better performance of pennies

Coinciding with the recovery in bitcoin prices over the past day, the coins on the market have done a better job so far. This may be a sign of increased risk among investors in the digital currency market.

According to the Coin Desk, yesterday we saw an increase in the price of bitcoin and other digital currencies, and as it turns out, investor sentiment is declining over the weekend.

The performance of many altcoins in the last few days is better than bitcoin, which shows that the risk of traders has increased during this period. For example, the price of the digital currency THORChain has risen by more than 11 percent in the last 24 hours, while bitcoin has risen by only 2 percent over the same period. The price of some DeFi active tokens, such as Aave and EOS, also increased by 7% overnight.

The mood of traders is getting better and better, and the index of fear and greed of bitcoin has moved slightly away from the zone of extreme fear. Despite this temporary improvement, some traders are still reluctant to enter the market, one reason being that bitcoin may remain in the variable range between $ 32,000 and $ 46,000.

Global stock market prices also rose on Tuesday, while 10-year US government bond yields reached 2.9 percent, the highest level since late 2018. Gold and other assets known as ” anti-inflationary assets “have fallen in price over the past 24 hours, indicating that investors in other financial markets have also taken risks.

What does the data in the chain say?

According to data from the analytical site Golsnood, large quantities of bitcoins were bought for between 38,000 and 45,000 dollars. The formation of this price range, in which the volume of transactions is significant, usually occurs before the jump or sharp price adjustment.

Golsnood analysts write in their new report:

Although limited price fluctuations have continued over the past two months, many bitcoin investors are still reluctant to sell their assets; Investors, some of whom keep their bitcoins at a loss.

This shows that investors who do not pay much attention to the transverse fluctuations in prices have bought much of the total supply of bitcoins for more than $ 40,000 and still hold.

On the other hand, the long-term uptrend in prices has worsened during this period, so we have to wait and see if the range between $ 35,000 and $ 42,000 seems attractive enough to buyers. In addition, the breakage of the ceiling or floor of the above-mentioned area can be considered as a confirmation of the change in the general market trend.

Market situation: recovery of bitcoin and better performance of pennies
Graph comparing the volume of bitcoin circulating units at purchase price.

The chart below shows the volume of bitcoin transactions at different price levels over the past year. The average range of the index, which is at the level of $ 38,590, has recently acted as one of the short-term price support. The large volume of transactions between $ 32,000 and $ 50,000 marks the last bitcoin price range, which is usually accompanied by a long period of accumulation or distribution (units between different accounts).

The recent decline in the volume of purchase orders compared to sales orders may also indicate some investors’ distrust of bitcoin. So, if the price starts to fall from current levels, the next support will be somewhere between $ 27,000 and $ 23,500.

Market situation: recovery of bitcoin and better performance of pennies
Comparative diagram of the volume of bitcoin trading at different price levels.

The publication Market Status: Recovery of Bitcoin and Better Performance on the Peninsula appeared for the first time in Currency Digital.

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