Market situation: Was the bitcoin jump temporary this week?

The market situation of many digital currencies has been declining since yesterday; A move that could be a sign that the recent jump in prices is temporary.

Last night, the US Department of Justice announced that it had confiscated $ 3.6 billion worth of bitcoins stolen from the stock exchange during the 2016 hacking of Bitfinex, according to Quinn Desk.

About six years ago, 120,000 bitcoins were stolen from a bitcoin exchange worth about $ 60 million at the time. Apparently, the couple was also arrested on charges of money laundering and complicity in the transfer of these bitcoins.

Bitfinx has said it will repay the victims of the 2016 robbery in the form of UNUS SED LEO, one of its local tokens. An hour after the news came out, the price of the Leo token rose by 50 percent.

Despite a 50% jump in the price of Leo, Bitcoin and Atrium have fallen by 3% in the last 24 hours. Ripple and Solana fell 4.5% and 6% respectively.

Despite the improvement in the mood of traders in recent days, analysts expect that market fluctuations will continue in the short term.

Martha Reyes, director of Bequant Exchange Research, said:

The volume of trade still seems small. Bitcoin has managed to maintain support between $ 30,000 and $ 40,000 since last year, but it still cannot be said to pose a price risk. If we want to take into account macro factors, ‌the lack of stock market trading volume and sharp price fluctuations ‌ showed signs of weakness in the high-yield assets market.

Improve the emotions of traders and reduce market fears

The bitcoin fear and greed index fell out of the range of “extreme fear” last week, and now there are signs that traders’ emotions are improving.

The Arcane Research Institute wrote in its report yesterday:

After trading in the market for three months with fear and confusion, IT bitcoin investors will now be more receptive to changing sentiment to a state of “greed”.

The last time the index returned from the level of extreme fear, it returned to July; A movement that was later accompanied by a rising jump in prices. This time, however, a jump in prices, while trading volume is lower than expected, is a sign of weak purchasing power. Together, these factors can pave the way for limited price fluctuations in the short term; Especially given that macroeconomic factors and the regulation of digital currencies around the world can put pressure on the market.

Arkan Research said:

As the market shrinks, the $ 40,000 level will be the most important price support we need to see in the coming days.

Market situation: Was the bitcoin jump temporary this week?
Bitcoin index of fear and greed

Increasing the price of bitcoin compared to Atrium

As the chart below shows, the price of Atrium against Bitcoin has recently undergone a downward correction. In the last seven days, as prices have fallen in the digital currency market, Atrium’s return has been only 1% lower than bitcoin. Despite this small difference, the discontinuation of support for the 200-day moving average in the Atrium / Bitcoin market means that Atrium is likely to fall more sharply than Bitcoin in the short term.

Market situation: Was the bitcoin jump temporary this week?
Atrium price chart versus Bitcoin

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