The crypto market has slumped deeper after the Bitcoin plunged to $28,000 in the last 24-hours. Negative sentiment continues following a 25% price drop in five days. The latest data shows Bitcoin’s dominance and Google trends data is at its lowest level since March 2020. With the ongoing crypto market crash, there is little protecting the market against further downside.
Bitcoin is bullish but analysts believe it will return above $32,000 and begin to regain the recent previous losses. Over the last 24-hours, the crypto market has traded in the red. It prompted more selling across the board. Down by nearly 9%, Bitcoin is currently trading at $28,660, as per data from CoinMarketCap. Ether lost 15% in the last 24-hours and is changing hands at $2,012. Overall, trading volume has significantly dropped by 11.38% – to $73.45 billion.
According to the 4-hour chart, further tests of the downside are being rejected. As such, the BTC price will likely reverse and head back above the $32,000 local resistance – probably in the next 24-hours. Bitcoin enthusiasts hope for an even higher upward retest for previous support levels as resistance.
Arcane Research, in its latest report, highlighted that Bitcoin’s trading volume surge is interesting given the dwindling spot volumes seen so far in the month of May. April recorded the lowest Bitcoin spot volumes since last summer. The latest uptick in volatility has drawn in traders. Traders are looking for greater price swings over the short term, although volatility spikes tend to be short-lived. A Singapore-based crypto trading firm QCP Capital sees large amounts of put demand from its options trading desk this week, which drove Bitcoin and Ether risk reversals – more negative from -8% to -15%. More volatility is expected over the short term.