Market situation: Sudden return or deeper decline of bitcoin?

As the situation with bitcoin futures shows, the mood of traders in these markets is somewhat declining and the sharp rise in prices may surprise them. On the other hand, some analysts are waiting for bitcoin to fall deeper to lower levels.

According to Kevin Desk, many digital currencies also fell yesterday due to falling prices on the global stock market. The general trend in the bitcoin market has been declining over the past two weeks, and traders are still waiting for the price to exceed $ 40,000 indefinitely. In the last month, Altcoins has seen an increase and decrease in investor acceptance, which shows a sense of distrust among market participants.

Dodge Quinn has fallen 12 percent in the last 24 hours and has so far lost much of its jump on Monday after Ilan Musk’s Twitter sale was finalized. Shiba Inu, another Meem Quinn in the digital currency market, also saw a 4% drop in prices during this period. It is worth mentioning that the price of bitcoin has fallen by more than 5% since Tuesday, and its return for the last 30 days is about minus 18%.

The global stock market, like the digital currency market, collapsed yesterday, adjusting part of its jump in late March. Since the beginning of 2022, sellers have been the dominant force in the stock market and digital currencies, and many market participants have reduced their investments in both assets. Meanwhile, the price of the US dollar on world markets is on the verge of reaching its one-year high, which could be an obstacle to rising bitcoin prices.

A sudden jump or a deeper drop in prices?

Many analysts believe that bitcoin will continue to experience large price fluctuations, but the general direction of these movements is unclear. Some indicators predict a decline in prices to lower levels, while others point to a jump in prices in the short term.

According to statistics available on the bitcoin options trading market, traders in these markets have a 60% chance of bitcoin trading over $ 36,000 in May.

In the bitcoin futures market, the average daily base rate (the difference between the current market price and the futures market) has reached its lowest level in a year, but this is usually the “increase” in the key interest rate as a sign that futures traders are bullish. It is considered.

The Arcane Research Institute wrote in its report yesterday:

Last year, the base rate was twice as low as today; Once in July (July 1400), before the pressure on debt sales in the summer, and once in February (February 1400). The decline in the key interest rate in July coincided with the market reaching its lowest price, while the decline in February was further accompanied by a stabilization of the price of bitcoin.

Market situation: Sudden return or deeper decline of bitcoin?
Graph of changes in the basic exchange rate of bitcoin futures markets.

Loan sales occur when short traders are forced to leave their trading positions due to a sudden rise in market prices.

Arkan Research continued:

In addition, there have been recent signs of increased activity in bitcoin futures traders. The volume of open trading positions in the Bitcoin Perpetual Futures market recently reached its one-year high after its steady growth in March (March 1400) and the intensification of this trend over the past few days.

Futures traders’ sentiment seems to be easing slightly, and this position may increase the likelihood of pressure on loan sales in the event of a sudden jump in the price of bitcoin.

In contrast, the situation of technical indicators is assessed as neutral and some analysts expect a possible decline in prices.

“Bitcoin is facing a bearish failure this week, awaiting confirmation below the $ 40,000 level,” said Katie Stockton, director of Fairlead Strategies. “If this downtrend is confirmed, the risk of falling prices will increase to further support of $ 27,200.”

Market status after publication: Sudden return or deeper decline in bitcoin? appeared first for currency.

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