Bitcoin Bounces Back Past $40,000, But May Struggle To Maintain Position

Christian Encila

3 years ago

2 mins read

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Bitcoin managed to recover from the $38K price zone and is now trading over the $40K mark, indicating that the bulls have made a rally against the bears.

Though the largest cryptocurrency in terms of market capitalization has lost 10% in the last two weeks, BTC is gradually recovering.

Bitcoin is currently trading at $41,431, according to price data website CoinGecko, after falling to roughly $38,779 on 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.

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is currently trading at $3,097, following a Tuesday low of $2,897.

Crypto total market cap at $1.88 trillion on the daily chart | 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.

The volume/market cap ratio has increased to 0.02647, while market dominance has increased to 40.87 percent.

Marcus Sotiriou, an analyst at the UK-based digital asset trader GlobalBlock, stated 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.”

Breaching Above $40K A Challenge

Bitcoin may struggle to maintain a price above $40,000, after the US Dollar Currency Index (DXY) touched a 52-week high of 101.02 on Wednesday.

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.

Data from blockchain analytics firm Kaiko shows that there was no bullish demand for BTC positions in perpetual futures markets.

The analytics firm reported in a tweet that funding rates for both Bitcoin (BTC) and Ethereum (ETH) had continued to drop since late-2021.

Massive 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.

According to CoinShares, crypto funds saw a net outflow of $97 million in the seven days ending April 15.

This is a significant change from the previous week, when the majority of the $134 million in outflows came from US funds.

The outflows of $134 million were the most since January.

Featured image from old.iranintl.com, chart from TradingView.com

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.