The price of Bitcoin (BTC) is still stuck in what traders hope will be a near-term downtrend, as the impact of April 18 rumors of a crackdown on “anonymous financial institutions” for facilitating money laundering. money using cryptocurrencies has yet to be shaken.
Data from TBEN Markets and TradingView shows that since it was broken below the $ 51,000 level on April 18, the price of BTC has traded in a range between $ 52,500 and $ 57,500 and established a descending pattern of highs and lower lows.
While regulatory concerns may have played a role in the current pullback, several other important developments have affected BTC’s recovery.
According to Micah Spruill, Managing Partner and Chief Investment Officer at S2F Capital, a 20% to 25% drop in the Bitcoin hash rate caused by mandatory power cuts in China’s Xinjiang region over the weekend “forced about 80% of minors to this offline area. “
Spruill sees this drop in hashrate, combined with a record high open Bitcoin futures interest rate, as the catalyst for the “perfect scenario for a major debt washout”.
As to what’s to come for Bitcoin, Spruill pointed to an increase in bullish sentiment among analysts and traders “after much of the over-speculation in the market this month was tempered by the pullback. prices.”
“Currently, on-chain metrics look incredibly healthy with accelerated growth in new entities joining the network, increased user registrations on major exchanges like Binance, and continued bullish net currency exits in Bitcoin and Ethereum (ETH). ”
Bitcoin’s current trading lineup could be dominated by bots
David Lifchitz, chief investment officer at ExoAlpha, echoed Spruill’s outlook by also highlighting regulatory concerns in the United States and the announced cryptocurrency ban in Turkey as “the game that kindled an environment fire. over-indebted commercial ”based on the financing of perpetual swaps. rate before and after the dive.
According to Lifchitz, Bitcoin is now back in the “$ 50,000 to $ 60,000 twilight zone” characterized by institutional buyers with orders at the $ 50,000 level, a retail FOMO above $ 60,000 and “Commercial bots playing ping-pong in the meantime. “
Since the pullback, Lifchitz identified temporary support for BTC in the middle of the $ 54,000- $ 55,000 range, but still considered it “too early to say if the decline is over.”
“Without a strong catalyst, breaking over $ 60,000 seems difficult right now, and a break below $ 50,000 could push Bitcoin down to $ 30,000. Traditional markets showing signs of exhaustion can also hurt the recovery of crypto markets. “
Ethereum price hits new high
Bitcoin’s current downtrend has opened the door for Ethereum (ETH) to enter the limelight as the top-ranked altcoin in terms of market cap hit a new all-time high at $ 2,644 on trading volume. of $ 47.3 billion.
The Ether rally was accompanied by a 25% rally in the price of Maker (MKR), one of the oldest decentralized funding protocols in the Ethereum network, which hit a new record high of $ 4,980.
Solana has also been performing very well lately, climbing 26% overnight to a new all-time high at $ 39.72.
The overall cryptocurrency market cap is now $ 2.02 trillion and Bitcoin’s dominance rate is 49.6%.