Bitcoin (BTC) regained $39,000 on April 27 after another night of pain sent the BTC/USD pair to its lowest levels since mid-March.
“All assets suffer” at the hands of the US dollar
Data from Cointelegraph Markets Pro and TradingView showed that the largest cryptocurrency was trading at $39,200 on Bitstamp at the time of writing, up 2.5%.
On Tuesday there were new problems as soon as trading began on Wall Street, and bitcoin followed stocks downhill once again hitting $37,700 twice.
Despite the fact that this area was already on the radar as an opportunity to hoard liquidity, some were far from convinced the sale was over.
The current relief, according to popular trader Kaleo, was simply a form of “dead cat bounce” and the real pain would begin when the urge faded.
Dump after this bounce is over with is gonna be so brutal
— KALEO (@CryptoKaleo) April 27, 2022
The fall after this bounce is going to be brutal
“Well, this bitcoin price action is not screaming much for the upside, at this point. It’s tough as it’s giving back every bullish push again“, added Cointelegraph contributor Michaël van de Poppe.
Similar to throughout the week, the US dollar showed no signs of aborting its bull run, adding pressure to the cryptocurrency as it the US dollar money index (DXY) defied multi-decade highs set in March 2020.
“The DXY is coming in higher than my base case, due to decisions by politicians outside of my base case,” wrote economist Lyn Alden in a Twitter thread about the phenomenon.
“So we have to be aware of the market problems that occur when this happens. It’s not a shakeout (for example, the US raises rates and gets shares bought), but all assets suffer.” .”
TradFi and cryptocurrencies feel the fear
So that, Nerves between crypto and traditional traders were evident and reflected in falling market sentiment.
The Cryptocurrency Fear and Greed Index hit its lowest level since April 12, which at 21/100 showed “extreme fear” that guided the market.
Its counterpart in the traditional market, the Fear and Greed Index, which until recently lagged the cryptocurrency index in “neutral” territory, also fell, registering 27/100 or “fear” on Wednesday.
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