Bitcoin (BTC) could be facing a potential short-term reversal in its price trajectory, as recent price bumps give way to a retreat. The lackluster performance of ether (ETH) futures exchange-traded funds (ETF) has also had a dampening effect on the overall crypto market.
According to FxPro senior market analyst Alex Kuptsikevich, Bitcoin’s failure to breach the 200-day moving average and its retreat against the buying in the stock market indices indicate a potential decline in the near future. While Bitcoin has outperformed the stock market recently, the current trend suggests a shift in momentum.
“In the short term, bitcoin seems more at risk of falling than rising,” commented a trader, citing the bearish performance of ether as an additional factor that has eroded confidence in the top tokens.
Last week, both ether and bitcoin saw a surge in price, reaching one-month highs after the launch of six ETH ETFs in the U.S. However, the actual performance of these ETFs did not live up to expectations. With less than $2 million in trading volume across the various funds on Monday, analysts have revised their bullish outlook. They are now favoring bitcoin investments due to the lackluster demand for ether ETFs.
Consequently, the poor performance of ether ETFs has weighed on the prices of ether itself, undoing nearly all the gains made in the past week. Meanwhile, bitcoin has managed to maintain its position above key support levels, offering some stability in the midst of volatile market conditions.
In the past 24 hours, major cryptocurrencies have seen little movement, with profit taking earlier in the week and a lack of catalysts contributing to the stagnant market conditions. Bitcoin experienced a 0.5% slump, ether slipped by 1%, and XRP and BNB Chain’s BNB remained relatively unchanged.
Among the major cryptocurrencies, Cardano’s ADA tokens were the only ones to show positive movement, with a 2.2% price increase. Other notable performers include toncoin (TON), which surged by 8.8% without any apparent catalyst, and Avalanche’s AVAX tokens, which continued their earlier gains with a 4% jump.
Overall, the current state of the cryptocurrency market suggests a potential reversal for bitcoin in the short term, while the lackluster performance of ether ETFs has dampened enthusiasm for the token. Traders and investors will be keeping a close eye on market trends and catalysts that could drive the next wave of price movements in the crypto market.