Bitcoin is trading slighting above the crucial $17,000 mark after having gained nearly 1.40% in the last 24 hours. Ether, the second most sought-after cryptocurrency, is holding at $1,272 as it gained 2.10%, more than the topmost BTC.
Despite the gains seen in the broader crypto market, chaos remains with the continuation of alternating positive and negative trends. Negative changes have drastically affected the market. And this scares investors. Analysts expect the continuing bullishness to strengthen the market and help it cross the current resistance levels.
BTC has been hovering above $17,000 for the past two weeks now. At the time of writing this article, Bitcoin was trading at $17,180. Analysts believe the price invariability and declining trading volume highlighted investors’ fretfulness. Investors have been reluctant to forge strongly into the market until they see firmer signs of macroeconomic improvement. On the other hand, Ethereum has been performing well.
But there are a few positive signs – long-term hodlers and small-sized wallets are actively accumulating during the current period of low volatility. BTC price hit an all-time high in November 2021 and investors saw $455 billion in profits. However, liquidity tightened since then and investors saw $213 billion in losses. As such, investors gave back 46.8% of the peak bull market profits. This is quite similar to the market conditions in 2018 when the ratio retraction hit 47.9% from gains.
Cumberland, an analyst, tweeted that there are plenty of sources of concern for market participants. He outlined that volumes and liquidity have dried up and are by various metrics, on the lows of the year. Sentiment remains very much dark.
