Bitcoin rose 3% over the past 24 hours, and there was a 5% decline in SOL and, apart from that, a roughly flat performance in ETH. Cryptocurrencies are starting to stabilize after declining sharply over the past week. Some indicators show investor sentiment at extremely bearish levels, which typically precede periods of buying activity. However, other technical measures suggest choppy price action could persist over the short term.
Bitcoin returned to above $35,000 and was up 3% over the past 24 hours, versus a 5% decline in SOL and roughly flat performance in ETH over the same period.
Still, it might be too soon to call a price bottom. “I think the determination of a bull/bear market is not as clear as previous cycles, due to the structure of the market changing drastically with institutions entering the space,” Marcus Sotiriou, an analyst at the U.K.-based digital asset broker GlobalBlock, wrote in an email to CoinDesk.
“Now, it is apparent that bitcoin is in a ranging environment (between $29,000 to $69,000 approximately) rather than a trending environment,” Sotiriou wrote.
“Bitcoin’s recovery is a long shot as investors are keener on the price being stabilized for now,” Alex Axelrod, founder, and CEO of Aximetria, a crypto-financial services firm, wrote in an email to CoinDesk. Axelrod monitors BTC price levels of between $32,000 and $40,000 for confirmation of a breakdown or breakout.
Latest prices of Cryptocurrency :
- Bitcoin (BTC): $36925, +4.41%
- Ether (ETH): $2448, +0.88%
- S&P 500 daily close: $4410, +0.28%
- Gold: $1842 per troy ounce, +0.56%
- Ten-year Treasury yield daily close: 1.74%
The chart below shows the recent increase in bitcoin’s spot trading volume. Short-term traders have been active despite the uncertainty regarding future price direction.
Short-Term Holders Underwater
According to blockchain data, losses are adding up for most short-term bitcoin holders. For example, the chart below indicates that 18% of short-term bitcoin holder supply is at a loss (BTC trading below its average cost basis), pointing to further selling. A similar scenario occurred during the 2018 bear market and subsequent price corrections.
Still, long-term bitcoin holders appear unfazed by the recent price dip. “The proportion of long-term holder supply has returned to a modest uptrend, which indicates a general unwillingness for this cohort to liquidate,” Glassnode, a crypto data firm, wrote in a blog post on Monday.
Crypto Funds Tend to Attract Capital
Inflows into digital-asset funds last week – after five straight weeks of outflows – suggest investors took advantage of the price dip.
Cryptocurrency funds brought in $14.4 million of new investor money during the seven days through Friday, ending a streak of five straight weeks of outflows, according to a report Monday from the digital-asset manager CoinShares.
Last week’s inflows were led by bitcoin-focused funds, bringing $13.8 million. Meanwhile, ethereum-focused funds suffered $15.6 million of outflows.
Round-Up of Altcoin
Solana Slides 17% to lead losses amid crypto market plunge: Major cryptocurrencies fell as much as 17% in 24 hours as the crypto market followed a broader decline in U.S. stock index futures on Monday. Last Friday, traders complained about network congestion on Solana and doubted its ability to attract real capital with that kind of meltdown. Solana has been attractive to large trading shops partly because it has prioritized scale. Still, when the network gets overcrowded, it has been shown that it can stall out.
Luxor tries to keep Proof-of-Work Mechanism on Ethereum: Crypto software and services company Luxor is launching an Ethereum mining pool even as it plans to abolish mining from its network. The company is working with large institutional miners, including Hut 8 and several retail miners in North America, to provide a U.S.-based Ethereum mining pool, the company said in a statement on Monday, according to Aoyon Ashraf.