Bitcoin (BTC) has been grappling to stand its ground in recent weeks, trading flat at around $38K. The flagship token did manage to witness a brief bout of spring last week popping slightly above the psychological level of $40K. However, the trend failed to gather traction, cascading in the range of $38K-$39K.
According to CoinMarketCap, the world’s most popular cryptocurrency, Bitcoin (BTC), is currently floating at $38,542, declining by 1.10 per cent over the past 24 hours. Bitcoin plummeted more that 4.50 per cent in the last 7 days. BTC’s total market cap is at $733,133,590,041 with a dominance of 42.1 per cent.
Why Bitcoin’s Price Recovery May Not Be Sustainable?
Over the past week, Bitcoin has been struggling below the psychological level of $40,000 with low volumes. The top crypto has now formed a new support at $37K, acting as a formidable hurdle for bears. If the bellwether token fails to hold at this level, Bitcoin may likely fall to the $34K support. In order to resume a bullish run, bulls must soon break over the 100-day moving average and restore market confidence.
Darshan Bathija, CEO and Co-Founder of Singapore based crypto platform, Vauld, said that the number of transactions made in profit on the BTC blockchain has increased significantly over the last two weeks, implying most of the in-profit transactions are highly geared toward selling. Hence, Bitcoin’s price recovery may not be sustainable until traders stop selling. He went on to add,
“Over the weekend, Bitcoin’s recovery was put on hold. Rejection from levels near $40,000 could be attributed to profit-taking. Simultaneously, support at $38,000 could be holding due to the increase in the buy-the-dip sentiment.”
Crypto Market Experiences a Choppy Terrain
The global cryptocurrency market continued to be on a choppy terrain as most of the tokens lost their values marginally. The total crypto market cap sank 0.31 per cent in the last 24 hours to $1.74 trillion. However, the total crypto market volume over the last 24 hours climbed at $83.32 billion, a 4.78 per cent increase.
Ethereum (ETH) seemed fortunate enough to have risen from this meltdown. The second largest cryptocurrency, ETH, has hopped by 0.05 per cent to trade at $2,843, at print time.
Major altcoins experienced a mixed bag of intermittent rise and fall. For one, Cardano (ADA), Terra (LUNA) and Avalanche (AVAX) witnessed a wee leap of 0.25, 2.33 and 3.51 per cent respectively to trade at green. In contrary, XRP and Solana (SOL) prices plunged in the bracket of 0.67 and 1.07 per cent to stand at $0.6179 and $88.18 each.