The crypto market is likely to see more downside in the coming days as Bitcoin struggles to break through resistance. The popular crypto recovered slightly above the $28,500 level but has lost 1.17% in the last 24-hours. BTC is trading at $28,695, as per data from CoinMarketCap. Ether has seen many downsides after slipping off the crucial $2,000 level. ETH is trading at $1,726.
The overall market has recorded mixed reactions from the altcoins as some continue to bask in the green, while some slipped into the red zone. Meme coins Dogecoin and Shiba Inu have managed to hold on, gaining nearly 5% and 1% respectively. Dogecoin is the biggest gainer, having been up by 4.47% in the last 24-hours. Popular altcoins like Solana is down by 4.38%, Cardano lost 2.83% and XRP 2.41%. Avalanche lost 1.69% in the last 24-hours and Polygon MATIC is down by 1.31%.
With uncertainty high in the market, crypto traders are very much in risk-off mode. The digital assets market is in its ninth consecutive week of negative returns. Data suggests that Bitcoin is on a 27% decline this month, but it’s up 10% from its recent extreme low at $25,840 on May 12.
David Duong, head of institutional research at Coinbase, highlighted that over the last few weeks, there has been a massive short selling. It may presage a short squeeze in the weeks ahead; month-end rebalancing flows may help. MRB Partners, a global investment research firm, sees equity markets rebounding, that is if, global growth conditions remain resilient. As such, the firm expects interest rates and bond yields to stay calm. This is probable as inflation will temporarily decelerate. MRB also expects central banks to briefly cool their newfound hawkishness.