Recent data indicates a minor dip of just under 1% in the broader cryptocurrency markets within the past 24 hours. Is there any chance of Bitcoin recovery after a possible dip?
Bitcoin Recovery Vulnerability After Recent Gains
Analysts express concerns over the potential for a short-term reversal in Bitcoin’s price trajectory. FxPro senior market analyst Alex Kuptsikevich notes, “Bitcoin has shown reluctance to push beyond the 200-day moving average, and its recent retreat coincides with an uptick in stock market indices.”
In contrast, the performance of Ether futures exchange-traded funds (ETFs) has been less than stellar.
Ether ETFs Fail to Impress, Impacting Market Sentiment
Despite hitting one-month highs after the launch of six ETH ETFs in the US, trading volumes have been disappointing. With less than $2 million traded across various ETFs on Monday and consistently weak volumes throughout the week, analysts have adjusted their outlook, favouring Bitcoin investments over Ether.
This sentiment has contributed to Ether’s loss of nearly all its gains from the previous week, while Bitcoin has managed to maintain its position above support levels.
The broader cryptocurrency majors have seen minimal movement in the last 24 hours, following a period of profit-taking earlier in the week and a lack of significant catalysts.
Technical Struggles: Is Bitcoin Dead?
The struggle for Bitcoin continues as it grapples with breaching the $27,800 resistance zone (Bitcoin in EUR – €26,406). Rejected near the 61.8% Fib retracement level, it experienced another decline. Without a clear move above the crucial $27,200 support zone, there’s potential for further decline.
Despite some early attempts to push above the $27,800 resistance zone, Bitcoin remains trapped below $27,700 and the 100-hourly Simple Moving Average. The breakdown of a key rising channel with support near $27,650 indicates a challenging road ahead (Bitcoin to euro – €26,263).
In the midst of these challenges, Bitcoin coin’s performance remains relatively stable when compared to the wider cryptocurrency space and the Nasdaq 100.
Ethereum’s Struggle
However, Ethereum (ETH) is struggling to keep pace, underperforming against Bitcoin. With ETH/USDT hovering close to the $1,600 floor, it’s indicative of a broader market trend.
As the securities markets witness falls in bond prices and equities, traders are seeking strong hedging options. Bitcoin’s resilience against more volatile altcoins positions it favourably.
Market Trends and Dominance
This is reflected in Bitcoin recovery, which has gained nearly one percentage point in the past week.
Several blue chips in the altcoin space, including Binance’s BNB token, Dogecoin (DOGE), and Tron (TRX), have seen negative week-on-week price performances. In contrast, Solana (SOL) and Cardano (ADA) are showing positive movements.
The global cryptocurrency market capitalization presently stands at $1.08 trillion, following a slight overnight decline of half a per cent.
