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2022-04-20 11:41 PM

Market Wrap: Altcoins Outperform as Sentiment Strengthens; Bitcoin is in the ‘Value Zone’

By William Dube

Bitcoin (BTC) and other cryptocurrencies traded higher on Tuesday, as recent bearish sentiment appears to be fading.
Most alternative cryptocurrencies (altcoins) outperformed bitcoin, indicating that traders have a greater appetite for risk. For example, THORChain’s RUNE token has increased by 11% in the last 24 hours, compared to a 2% increase in BTC during the same period.

Meanwhile, decentralized finance (DeFi) tokens like AAVE and EOS increased by more than 7% on Tuesday.
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Sentiment among crypto traders is also beginning to improve, as evidenced by a slight increase in the bitcoin Fear & Greed Index on Tuesday. Nonetheless, some buyers are staying away as BTC trades in a narrow range between $32,000 (R481k) and $46,000 (R 692k).
Stocks rose as the 10-year Treasury yield rose toward 2.9 percent, a level not seen since late 2018. Gold, a traditional safe-haven asset, has fallen in price in the last 24 hours, indicating a slight risk-on tone in global markets. Bitcoin’s price range

According to blockchain data compiled by Glassnode, a significant amount of bitcoin supply has been accumulated between the $38,000(R 573k) and $45,000(R 677k) price range. Price “value” zones, or areas with a high level of trading activity, typically precede strong price breakouts or breakdowns.

“Despite another two months of sideways consolidation,” Glassnode wrote in a blog post, “a large proportion of the market appears unwilling to spend and sell their coins, even if their coins are held at a loss.” This suggests that price-insensitive traders own a large portion of bitcoin’s supply above the $40,000 (R 602k) price level.

Long-term price momentum has deteriorated thus far, so it remains to be seen whether traders will continue to find appealing buying points between $35,000(R 526K) and $42,000(R 632k). A breakout or breakdown of the current price range is required from a technical standpoint to confirm a trend shift.

The chart below depicts a volume profile of bitcoin’s price range over a year. The midpoint currently indicates short-term support at $38,590(R 581k). The most recent price range is defined by high-volume nodes between $32,000 (R481k)and $50,000(R 752k) which typically coincides with prolonged periods of accumulation or distribution.

However, the recent drop in buy volume relative to selling volume may indicate a lack of conviction among bitcoin buyers. If the current range is broken, secondary support is seen at $27,000(R 406k) and $23,500(R 354k). A roundup of altcoins
Terra’s LUNA rises 11% as UST becomes the third-largest stable coin: Terra’s LUNA outperformed the overall crypto market, rising by up to 11% in the last 24 hours.

Following lifetime highs of $120(R 1800) earlier this month, the price fell nearly 37% in the first two weeks of April. During the late hours of Monday, Terra’s algorithmic stable coin UST surpassed Binance USD (BUSD) to become the third-largest by circulation.

The BNB chain burns over $770 million(R 116bn) in BNB tokens: According to tracker data, BNB Chain will burn over 1.8 million Binance coins (BNB) in its first burn this quarter. On Tuesday, at 08:23:05 UTC, the burn was carried out on the BNB Chain.

The Ethereum Foundation has $1.3 billion(R 19.6bn) in ether and $300 million(R 4.5bn) in non-crypto investments: The Ethereum Foundation reported Monday that it had more than $1.6 billion(R 24.1 bn) in treasury assets at the end of March. ETH, the world’s second-largest cryptocurrency by market capitalization, was held for nearly $1.29 billion(R 19.4bn). As of March 31, this accounted for more than 0.297 percent of the total ether supply. Other cryptocurrencies accounted for approximately $11 million (R 165m)

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William Dube

William Dube is a finance and economic news expert with over 10 years of experience in economic anaylsis, financial product assessment and market analysis. With a numerous certificates from prestigious universities including but not limited to Yale University and the University of Pennyslivenia. William specializes in providing insightful news developments in South Africa and commentary on investment strategies, risk management, and global economic trends. You can contact him on william@rateweb.co.za