Bitcoin has recovered from the $38K price area and is trading above the $40K mark. It indicates that the bulls are taking a stand against the bears.
Although the market capitalization of the biggest cryptocurrency has fallen 10% over the past two weeks, BTC continues to recover.
Bitcoin trades currently at $41,431 according to CoinGecko. It has fallen to approximately $38,779 since Monday.
Bitcoin increased about 7% from the current month’s lows. The majority of the token’s profits come from large traders amassing more crypto at lower prices.
Additionally, the token’s erratic movements resulted in significant liquidations in the futures market, particularly in long holdings.
Bitcoin Recovers – For Now
However, the massive liquidations revealed another factor affecting BTC positioning — a sizable fraction of traders looked to be abandoning the world’s largest cryptocurrency.
Along with Bitcoin’s rebound, the broader cryptocurrency market has increased by 3.3 percent during the last 24 hours.
After a Tuesday low at $2,897, Ethereum (ETH) is trading currently at $3,097.
Crypto market cap total at $1.88 Trillion according to the daily chart. Source: TradingView.com| Source: TradingView.com
Based on data by CoinMarketCap, Bitcoin’s trading volume increased 19.60 percent in the last 24 hours, followed by a 1.04 percent decline in its market capitalization.
Volume/marketcap ratio increased to 0.0247, and market dominance increased to 40%.
Marcus Sotiriou (an analyst for the UK-based global asset trader GlobalBlock) stated that in a newsletter
“In my judgment, the macro landscape is favorable… I am unconcerned about whether or not there will be a 50-basis-point rate hike. What matters is the consumer’s strength.”
It’s a challenge to reach above $40K
Bitcoin’s price may drop below $40,000 as the US Dollar Currency Index (DXY), which reached 101.02 for its 52-week peak on Wednesday, could make it difficult to hold that level.
The dollar’s adverse relationship with Bitcoin has remained stable throughout the previous decade, according to experts at cryptocurrency research firm Delphi Digital in an April 14 analysis.
Kaiko’s blockchain analytics firm has data that shows there wasn’t any bullish demand to buy Bitcoin in perpetual futures markets.
In a tweet, the analytics company reported that both Bitcoin (BTC), and Ethereum (ETH), funding rates had been falling since late-2021.
Large Outflows
Meanwhile, crypto funds had their second consecutive week of withdrawals as Bitcoin grew more interest rate sensitive and investors adjusted to the Federal Reserve’s hawkish stance, CoinShares reported Wednesday.
CoinShares reported that there was a $97 million net outflow from crypto funds in seven days ended April 15, according to CoinShares.
This represents a marked change from last week’s $134m in outflows, which was dominated by US funds.
Since January, the outflows were $134 millions.
Featured Image from old.iranintl.com. Chart courtesy of TradingView.com