Cryptocurrencies are recording a weaker opening to the week, with bitcoin struggling to hold on to the key $27,000 level. Weakness in the largest cryptocurrency is also affecting lower altcoin prices. The largest of the altcoins, Ethereum is at the $1,850 level. Ethereum erased almost all of the growth after the Shnaghai Upgrade, which analysts and ETH's creator described as the last key milestone for the ETH blockchain. The weekend's weakness in BTC persisted with volume ($10 billion) high for the usual low liquidity environment, signaling that the decline could deepen.
News
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile app- Binance dominated spot trading on centralized exchanges (CEX) in Q1 with 62% market share. Spot volume on Coinbase (COIN.US), the most popular exchange in the U.S., surprisingly fell 0.5% in Q1 2023. This raises uncertainty about the remaining metrics and Q1 2023 financial results, which the exchange will show on May 4;
- giedy CEO Brian Armstrong has been regularly selling shares since March. On April 10, he liquidated 27,930 shares at a price of $62.58. He also sold the same amount on March 27, at $62.86, and a smaller tranche of 1,706 shares, on March 20, at $75.31;
- According to CoinGecko's report, BTC trading volume on the 10 largest crypto exchanges reached $2.8 trillion in 2023 Q1, up more than 18% from 2022 Q4 - in this context, Coinbase's result is all the more puzzling;
- Recent CEO comments have indicated that the exchange is considering leaving the US. Regulatory uncertainty and likely tighter regulations in the US are also evidenced by the Gemini exchange's 'emigration' plans;
- Monthly BTC trading volume has risen from a record low of $0.5 trillion in December 2022, but still has not reached the $1 trillion level last seen variance in the first half of 2022;
- The overall increase in volume metrics illustrates the rise in hopes of a bull market and renewed, considerable interest in cryptocurrencies;
- Due to the regulatory uncertainty of centralized exchanges (CEX), the popularity of decentralized platforms (DEX) doubled; Coingecko report shows that the popularity of CEX increased by about 17% in Q1 16.9%.
Despite BTC price risen by 100% since the 2022 bottom, HOLD-ers (investors with the highest level of conviction) didn't sell their holdings. This group still have 80% of all BTC supply. On-chain analysts read this as a one of a signal, that BTC is still well below possible bull cycle highs. Glassnode
The top 8 on-chain indicators selected by analyst platform Glassnode are in positive territory. Since Bitcoin's cycles have charecterized a similar course so far, the indicator may suggest that the current correction is something quite normal and does not signal a permanent change in the trend. Especially if we look at previous reactions, when a set of indicators were positive. Source: Glassnode
The crypto market sentiment indicator dropped to neutral - just yesterday it was indicating 'greed' which illustrates the scale of the market's 'overheating' during the recent rally. Source: alternative.me
Bitcoin chart, D1 interval. Bulls are struggling to hold near the 23.6 Fibonacci retracement of the upward wave started in November 2022. If the support falls, a decline towards $25,000 is possible. At these levels are the 38.2 Fibo retracement and the previous key price reactions of March and February and, very importantly, the price level before the collapse of the FTX exchange. Source: xStation5
