The volatile crypto market saw slight gains over the last 24-hours as Bitcoin steadily made its way towards the $40,000 level. Early Monday, the popular cryptocurrency briefly slipped around the $38,000 mark but bounced back to favorable trading.
At the time of writing this article, Bitcoin is up by 2.18% and is trading at $40,712. Ethereum is changing hands at $3,039. It has gained 1.43% in the last 24-hours. Jeff Dorman, the chief investment officer at Arca, believes a boring market is often seen as a weak market. He highlighted that if it’s not going up, it must be going down. In digital asset markets, bored traders become impatient which leads to a lot of pushing on a string.
Analysts say regulatory uncertainties remain a key concern for investors, including the failed European Know Your Customer (KYC) and Anti-Money Laundering (AML) proposed rules for unhosted private wallets. Exchanges had been demanding additional information from users, which resulted in discomfort for traders.
Over the past couple of days, the crypto market has been very much volatile with BTC’s sudden ups and downs. This has been attributed to turbulent macroeconomics and geopolitics. As such, margin trading data shows that arbitrage desks and market makers seem confident that the sub-$40,000 dip will be followed by an upside. Moreover, pro-traders increased their bullish bets after a 15% Bitcoin price rally in 14-days.
Despite the slight gains, the odds of a price crash are still substantial. Bullish activity is expected toward the $45,000 resistance zone. A positive momentum signal is needed for the price recovery outside of the current trading range.