Bitcoin pulled up slightly from yesterday’s lows of $38,000. It gained 2.60% in the last 24-hours but traders remain bearish. Technical indicators highlight a significant rebound in the cards. Bitcoin created a bullish candlestick on April 26, but the gains were almost lost by a bearish engulfing candlestick on April 27. This validated the previous ascending support line as resistance. Analysts believe the bearish development could lead to lower prices.
At the time of writing this article, Bitcoin was trading at $39,363. There is buyer demand for around $38,000 in BTC. But it remains to be seen if the cryptocurrency can break above its short-term downtrend. Analysts say the choppy trading across cryptos and stocks shows uncertainty among traders – macroeconomic and geopolitical risks continue to linger.
Moreover, regulatory concerns continue to pose threat to the crypto market. The New York State Assembly on April 26 passed a bill banning new proof-of-work (PoW) crypto carbon-based mining facilities in the state. But this doesn’t impact Bitcoin as mining equipment is portable. However, the steady threat of anti-crypto law can have a negative impact on price. Investors in Europe are avoiding digital assets and many are seeking protection in US dollar-denominated assets.
Investors are also keeping a lookout for the potential US Federal Reserve 250 basis point rate hike planned for 2022. It aims to tackle inflationary pressure but it could spin economies into a recession, thus another reason for investors to avoid highly-volatile assets like cryptocurrencies.
Meanwhile, Ether is up by 1.58% and is changing hands at $2,888. The altcoins gave a mixed price reaction with slight gains. Solana gained 2.43% in the last 24-hours, Terra LUNA 2.23%, and Cronos (CRO) 2.13%. The meme coins Dogecoin and Shiba Inu remained in the red with stablecoins Binance USD and TerraUSD (UST).
