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Bitcoin and other crypto tokens were trading mixed on Monday. The digital asset market erased all their gains over the weekend selling. However, traders are keenly looking at the monetary path cues. Traders will be looking at major economic events during the week.
Bitcoin tried to show some recovery after the weekend cuts as the largest crypto asset rose slightly but remained below the $28,000 mark. However, its largest peer, Ethereum, dropped for another session and was holding below the $1,900 mark. Other altcoins were trading with mixed cues.
Over the weekend, Bitcoin continued to trade below the $28,000 level as it started a correction phase leading to a decline in investor confidence. This could likely be because of investors and traders weighing macroeconomic and crypto-industry-focused uncertainties, said Edul Patel, CEO and Co-Founder at Mudrex.
“If the price turns down from the current level, the next support would be at $27,119, and then $26,500. On the other hand, Ethereum erases all gains acquired from the Shanghai upgrade. Overall, the market looks bearish at the moment,” he said.
Top tokens were trading with mixed cues on Monday but the price action was capped among the top names. Among the losers, Avalanche was down 2 per cent, followed by Dogecoin and Polygon. Solana and Cardano were also among the top losers. On the contrary, Litecoin, Tron and Shiba Inu rose a per cent, each.
The global cryptocurrency market cap was trading almost flat, holding around the $1.17 trillion mark as it rose slightly in the last 24 hours. However, the total trading volumes jumped more than a per cent to $31.49 billion.
Bitcoin has declined 10 per cent over the past three days due to the liquidation of long positions and a break of key support in the $26,500 area. Data from US economic momentum surveys and hotter-than-expected US inflation data pushed US yields higher, weighing on low-yielding crypto assets, said Sathvik Vishwanath, Co-Founder and CEO at Unocoin.
“Uncertainty about the US regulatory situation is another factor weighing on cryptocurrencies. Despite the short-term market overheating, confidence in Bitcoin’s long-term price outlook makes sense when considering macro factors, on-chain trends, and technical indicators. Bargain hunters and dip buyers are expected to jump in as Bitcoin sees a significant drop,” he said.
Tech View by Giottus Crypto Platform
After regaining its 200-day EMA right at the start of 2023, Polkadot (DOT) seems to be interestingly placed as April draws to a close. It has managed to maintain its 200-day EMA as support, which has confluence with another macro support level at $5.8.
However, DOT also seems to have drawn a head and shoulders pattern this year, which, if it plays out, could see DOT heading to as low as $5. With BTC and ETH experiencing corrections along with the rest of the market, DOT may be at the receiving end of macro sentiment when it comes to predicting its next move.
Those looking to enter positions will want to see confirmation of this support being held, while those looking to buy on dips should wait for the H&S to potentially play out.
Major levels
Support: $5.8, $5.5, $5.0
Resistance: $5.95, $6.2(Views and recommendations given in this section are the analysts’ own and do not represent those of Business Today. Please consult your financial adviser before taking any position in the asset/s mentioned.)
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