Traders continue to be cautious after the tremendous sell-off of Bitcoin in the previous week. However, data regarding on-chain is starting to indicate bullish activity gradually increasing. The larger crypto market, however, is waiting for the next big move.
Can Bitcoin Regain Its High?
Bitcoin (BTC) price action and the bigger crypto market were comparatively subdued on 27th May. This is because nervous traders continued to be unsure about what will happen next after the massive plunge in the previous week. Traders who were leveraged were wiped out because BTC dropped as far as $30,000. However, the price rebounded after that point.
TradingView and Cointelegraph Markets data indicated that the price of Bitcoin has managed higher lows and higher highs in the last week. However, bulls continue facing strong resistance when they are trying to breach the $40,000 mark. Bears seemingly have set up a strong defense at the level which is psychologically important.
For several traders, the correction that took place recently would have brought back traumatic memories of the 2018 and 2017 market crashes. Back then, a crypto winter had ensued that lasted two years. This is perhaps another major reason why the crypto market remains indecisive about the situation.
David Lifchitz, the CIO and managing partner at ExoAlpha, said that traders must pay close attention to the events on the market. They must look at the catalysts that influenced the present situation. Since October 2020. Bitcoin had an unprecedented uninterrupted surge starting at $10,000. It hit the ATH of $65000 in the middle of this year’s April.
However, then 2021’s great deleveraging happened which resulted in Bitcoin prices falling by 54%, to a value of $30,000. Altcoins and Ether (ETH) were affected much worse. He says that the recent correction has drastically reduced the leverage amount.
