Bitcoin (BTC) is off to a stuttering start in the second week of April as bulls fight to keep support above $40,000.
Following a low-volatility weekend, the last weekly close saw market worries return; BTC/USD plummeted in the final hours of April 10.
The average holder presently feels trapped between two stools – macro factors promise massive trend shifts but are slow to materialize. Simultaneously, in general, “serious” buyer demand for crypto assets is lacking.
On the other hand, those inside are unconcerned about the future, as indicated by all-time high Bitcoin network fundamentals and more. These opposing causes result in price action that appears stuck and unsure of where to go next. Is it possible that things will change in the following week?
Cointelegraph examines five potential Bitcoin price cues as a retest of $40,000 approaches.
April 11 begins with a $42,000 recapture for BTC/USD. The pair temporarily lost overnight when it dropped into the weekly close.
Bitcoin hit $41,771 on Bitstamp, hitting its lowest in weeks on March 23. As a result, the largest cryptocurrency, likewise, surrendered all of its gains from the interim period, falling back to the top of its trading range from last month. It could, however, wind up being a retest of earlier resistance as support. Instead of dreading the worst, many traders are optimistic that a turnaround will occur soon.
Credible Crypto commented on Bitfinex whale buying and new chart data indicating that Bitcoin’s Aroon signal has flipped bullish in recent days.
With macroeconomic doom on the horizon, it is unsurprising that the market mood is deteriorating.
The Crypto Fear & Greed Index has returned to the “fear” zone after sensing “greed” across Crypto at the end of March.
Like the classic market Fear & Greed Index, the indicator has lost half of its adjusted score in less than two weeks as traders’ cold feet return.
On April 11, Crypto Fear & Greed was 32/100, while its traditional market counterpart, classified as “neutral,” was 46/100. This week, a ray of optimism emerged from an unexpected source. Despite the price declines, Bitcoin’s network difficulty should fall by 0.4 percent in the next few days. The problem will shift downward from all-time highs to reflect changes in mining composition; arguably the essential component of the Bitcoin network’s self-maintaining paradigm.
The minor scale of the adjustment implies that miners are still financially healthy at present levels, despite last week’s 10% BTC/USD drop.
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