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

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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.
It’s just been released! Please sign up for our dai­ly Mar­ket Wrap newslet­ter, which explains what is hap­pen­ing in the cryp­tocur­ren­cy mar­kets – and why. 

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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