Bitcoin (BTC) price is still stuck in what traders hope will be a downtrend in the near term as the impact of the April 18 rumors of a crackdown on “unnamed financial institutions” for facilitating money laundering using cryptocurrencies has yet to be shaken off.
Data from Cointelegraph Markets and TradingView shows that since the price of BTC bumped below the $ 51,000 level on April 18, the price of BTC has traded in a range between $ 52,500 and $ 57,500 and a declining pattern of lower peaks and lows to brought about.
While regulatory concerns may have played a role in the current uptake, several other important developments have impacted BTC’s recovery.
According to Micah Spruill, managing partner and chief investment officer at S2F Capital, a 20% to 25% drop in bitcoin hash rate from mandatory power outages in the Xinjiang region of China over the weekend has caused “ about 80% of the miners forced that area offline. “
Spruill sees this drop in hashrate, combined with a record high in Bitcoin futures open rates, as the catalyst for “the perfect scenario for a major outwash of excessive leverage.”
In terms of what comes next for Bitcoin, Spruill pointed to an increase in bullish sentiment among analysts and traders “after much of the overspeculation in the market this month has been dampened by the price decline.”
Currently on-chain statistics look incredibly healthy with accelerated growth of new entities joining the network, more user sign-ups on major exchanges such as Binance and continued bullish net outflows from exchanges in both Bitcoin and Ethereum (ETH) . ”
Bitcoin’s current trading range may be dominated by bots
David Lifchitz, the chief investment officer at ExoAlpha, echoed Spruill’s perspectives, while also pointing to concerns about regulation in the US and Turkey’s announced ban on cryptocurrencies as “the competition that sparked an over-indebted trading environment. “based on perpetual swap financing. rate before and after the dive.
According to Lifchitz, Bitcoin is now back in the “$ 50,000 – $ 60,000 twilight zone” characterized by institutional dip buyers with orders at the $ 50,000 level, retail FOMO above $ 60,000 and “trading bots playing ping pong in the range in between. “
Since the rapture, Lifchitz identified a temporary support for BTC in the mid-range of the USD 54,000 to USD 55,000 range, but still felt it was “too early to say if the dip is over”.
“Without a strong catalyst, it seems difficult to break above $ 60k at this point, and a break below $ 50k could drop Bitcoin to $ 30k. Traditional markets showing signs of exhaustion could also be a dent in the crypto markets’ recovery. “
Ethereum price hits a new high
Bitcoin’s current downtrend has opened the door for Ethereum (ETH) to enter the spotlight as the highest ranked altcoin by market cap hit a new all-time high of $ 2,644 against the back of $ 47.3 billion in trading volume.
Ether’s rally was accompanied by a 25% increase in the price of Maker (MKR), one of the oldest decentralized financial protocols on the Ethereum network, which hit a new all-time high of $ 4,980.
Solana has also been performing strongly lately, rising 26% overnight to hit a new all-time high of $ 39.72.
The total cryptocurrency market cap is now at $ 2.02 trillion and Bitcoin’s dominance is 49.6%.