After seeing a recovery earlier this week, cryptocurrencies remained stable around the same value as of Friday afternoon. Bitcoin (BTC) and Ether (ETH) appear to be in a period of consolidation in which prices fluctuate in a narrow range, showing a feeling of indecision among traders.
Market recovery is underway
Traditional markets, meanwhile, are continuing to recover from U.S. unemployment records from the coronavirus epidemic, and a $ 2 trillion support fund package is about to be approved by U.S. President Donald Trump.
The Federal Reserve “and fiscal policies have avoided an economic and financial weakening accelerated by recent events. Unfortunately, they cannot avoid a deep and sudden recession resulting in alarming unemployment and business closures, "Mohamed A. El-Erian, chief economic adviser at Allianz, wrote in a tweet.
Crypto markets are consolidating
On low volumes, bitcoin price changes narrowed, staying in a range of quotation $ 6.400- $ 6.900 for BTC as of March 24. This brought the cryptocurrency moving averages closer to 10 days and 50 days. ”I think bitcoin has just come out of its crash range of $ 4.000 to $ 5.000, long before the potential recovery of traditional stocks.
In the meantime, other safer markets such as bond markets and gold have consolidated, "said Siddharth Jha, a former Wall Street analyst who has now focused on blockchain technology when Arbol started. Indeed, gold started to consolidate moving averages from March 27th.
"Some people I esteem say gold is a safe business right now," said Rupert Douglas, corporate development manager for institutional sales at Koine, a digital wealth manager. "Maybe it is, maybe silver will skyrocket, but if it doesn't and it will be listed lower, will bitcoin take its place?"
At this moment there is no better decision than another in trading
The collapse of March 12 is still fresh in the minds of cryptocurrency traders and fund managers, and anyone realizes that there is no better decision than another at the moment in trading.
“Markets need to be saturated for people to seek incremental returns. In addition, many companies are licking their wounds from the post-BitMEX debacle, "said Vishal Shah, founder of Alpha5, a new derivatives exchange supported by large crypto funds.
Shah was referring to the $ 700 million liquidation on BitMEX that occurred on March 12th. This caused problems for the DeFi ecosystem based on the Ethereum network, which is based on the price of Ether to ensure stability. Unsurprisingly, the ether consolidated, although some volume was seen on Friday.
"After a serious shutdown and subsequent rebound, markets often consolidate for some time to see how flows can develop," said Jha of Arbol.