The technical charts shows more drop in price of Bitcoin. That it is probably because sellers react to extreme overbought status since March. Bitcoin traded less on Friday as the price struggled near the $35,000 resistance level. The cryptocurrency was trading around $32,000 at the time. And also it decreased about 8% over the past 24 hours. Some analysts anticipate this downside continues the weakness into the weekend as a volatile month is going to end. Endless worries about regulatory crackdowns and environmental issues affected on bitcoin’s price over the past few months. The technical charts shows further falls is probable as sellers react to extreme overbought conditions since March.
Navigating Trading Ranges
During the short term, bitcoin stays in a stabilization phase between $30,000 support and $40,000 resistance. Usually, trading ranges can be difficult to navigate for some traders.
“Chinese market participants have been massively selling during the past month alongside the Grayscale unlocking schedule leading to more selling pressure,” siad Elie Le Rest. He is the partner and co-founder of ExoAlpha. Which is a crypto hedge fund. Greyscale is a unit of Digital Currency Group.
“With newcomers in the crypto market seeing their profit and capital getting wiped out by selling waves, newcomers are taking their losses as they can’t stomach this much negative volatility anymore,” continued Le Rest.
Crypto Traders’ Struggle
Traders are also struggling with the possible for harder monetary policy in the U.S. this year. Which it can be weight on risking assets containing cryptocurrencies.
“Wall Street will have to see a couple more inflation and labor reports before having a better understanding on when the [Federal Reserve] will taper and be poised to raise interest rates,”. Edward Moya, the senior market analyst at Oanda taled about it.
“It seems it will take intensifying inflation pressures to get the dollar rally going and that might pose one of the key risks for cryptocurrencies this summer,” . Moya added.