As a seasoned crypto investor, I’ve seen my fair share of market volatility and sudden price movements. The latest dip in Bitcoin (BTC) prices, which hit two-week lows on April 30, left me feeling a mix of concern and cautious optimism.
Bitcoin (BTC) reached its lowest point in two weeks near the April 30 opening of Wall Street due to underperforming newly launched spot price Exchange-Traded Funds (ETFs).
BTC price suddenly retargets $60,000
The price of Bitcoin against the US Dollar, as monitored by CryptoMoon Markets Pro and TradingView, experienced a significant decline following the Asian trading session. The support level at $61,000 was broken.
Over the past 24 hours, there was a significant increase in crypto liquidations, amounting to approximately $275 million according to data obtained from the monitoring resource, CoinGlass.
The initial wariness gave way to pessimism as it came to light that the trading volumes for Hong Kong’s newly launched Bitcoin ETFs were significantly lower than anticipated on their first day.
As a Bloomberg Intelligence analyst, I find it noteworthy that the newly introduced product line generated a revenue of $12.4 million. Given the scale of the local market, this is an impressive achievement.
On X, previously known as Twitter, Balchunas expressed enthusiastic approval for the first day’s events.
“The US recorded assets worth $740 million and conducted $4.6 billion in trading. Although these figures appear modest, they represent significantly larger equivalents when considering their market size: approximately $25 billion for assets and $1.6 billion for trading.”
“For context, China AMC’s bitcoin ETF is already among Top 20% biggest in that mkt after one day.”
Balchunas pointed out that the Hong Kong launch of the spot ETF would boost total spot ETF investments as U.S. trading volumes were beginning to decline slightly.
As a data analyst, I’ve recently reviewed the most recent figures from reliable sources, among which is the UK-based investment firm Farside. These numbers indicate that American Exchange-Traded Funds (ETFs) experienced four consecutive days of net outflows up until April 29th.
Concern over Bitcoin futures shorting
Market observers are keeping a close watch on potential reversals for Bitcoin’s current price downturn, with key levels of interest lying at $60,000 and just beneath that point.
According to Glassnode’s co-founders Yann Allemann and Jan Happel, expressed in a recent Reddit post, the 50-day Exponential Moving Average (EMA) acts as a potential support level. Meanwhile, the $60,000 mark appears to be a strong foundation within the current price range, which could extend up to $74,000.
“With the market favoring a ‘buy on the dip’ approach, bullish sentiment persists. However, a breach of the $60k support may lead to further stability at the $52k level, historically attracting buyers and reinforcing the uptrend.”
As an analyst, I’d like to highlight that Allemann and Happel emphasized the significance of the 50-day exponential moving average (EMA) which hovered around $64,500, while Wolf brought attention to the 21-day EMA at the same price level. At present, the daily candle is showing potential to surpass these trendlines.
As a fellow crypto investor, I’ve noticed that Axel Adler expressed some concern about the current state of Bitcoin futures in the market. Specifically, he mentioned that these contracts were being sold or “shorted,” which could potentially weaken Bitcoin’s support levels in the near term.
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2024-04-30 17:48