The crypto market remains bearish with Bitcoin declining 1.23% in the last 24-hours. The market leader has been stuck at the $38,000 mark since last week. It has been unable to break from the 26-day-long descending channel. Traders have deployed a wait-and-see approach for the interest rate announcement by the US Federal Reserve. As such, Bitcoin has taken a resilient stance in the face of a negative outlook.
At the time of writing this article, BTC was trading at $38,014. The price tested the downside again as a strong base from which to drop further has already been set. Over the past few weeks, Bitcoin price action has seen more downside. It reached the lows of $37,500 following a price drop at the end of April. Analysts believe that if this mark is breached again, there could be more downside. The next major support level is $36,000.
Experts attribute the crypto’s price struggles to the bearish macroeconomic situation. However, one needs to see how professional traders position themselves and the derivatives market to determine some excellent indicators, especially Bitcoin’s futures contracts premium. Analysts highlighted that a bearish market sentiment causes the three-month futures contract to trade at a 5% or lower annualized premium basis.
Meanwhile, Ethereum is down by 1.71% and is trading at $2,797. The altcoins have been splashed with red too. Solana lost 2.37% of its price in the last 24-hours, Terra LUNA 1.62%, and Ripple’s XRP is trading at $0.614 – down by 1.32%. Polygon lost 0.46%. Avalanche is the biggest loser – down by nearly 3% in the last 24-hours.