Market situation: Prices are still likely to fall again

For several days now, the Bitcoin and other digital currencies have been showing signs of price recovery. However, most experts believe that prices are still likely to fall again.

To Report Coin Desk, the upward trend of bitcoin since yesterday, is being followed by the price of $ 37,000. Prices have risen about 4.5 percent in the last 24 hours, while Atrium has grown less than 4 percent. Given the return of prices in the early hours of today, it seems that buyers are slowly leaving the market. Analysts expect the market to remain volatile ahead of tonight’s crucial Fed meeting. It is worth mentioning that the Federal Reserve meeting started yesterday and its result is scheduled to be announced at 23:00 (Tehran time).

At the end of the meeting, the final opinion of the Federal Reserve officials regarding the details of the end of the securities purchase program in March (March) and at the same time with the possible increase of bank interest rates, will be announced. Traders’ concerns about the US government’s contractionary policies have increased sales pressure in high-risk asset markets such as digital currency and stocks in the past two weeks.

Due to the uncertainty of macroeconomic indicators and digital currency legislation, some buyers seem to have preferred not to enter the market right now. Russia’s Ministry of Finance has recently opposed a request by the country’s central bank to ban digital currencies. Ivan Chebeskov, head of Russia’s finance policy department, told a news conference yesterday that the country’s digital currency industry “needs regulation, not a complete ban.”

Short-term traders now appear to be back in the bitcoin instant market. Trading volume has risen in recent days after prices fell below $ 40,000; This issue can be considered as a sign of increasing price fluctuations.

On the other hand, many indicators related to the market situation, such as the volume of liquidated long trading positions and the volume of open contracts, indicate that prices are still likely to fall again.

The Arcane Research Institute wrote in its report yesterday:

Silent liquidations of Bitcoin trading positions during the market turmoil, compared to what we have experienced in the past, indicate that long trading positions (buyers) who are still at a loss may face further price falls.

Increase bitcoin dominance rate

Another indicator of the market is the increase in bitcoin dominance, which measures bitcoin’s share of the total market value of digital currencies. Because investing in bitcoin is less risky than investing in bitcoins, increasing bitcoin dominance usually means increasing the confidence of traders.

Also read: What is Bitcoin Dominance? Everything about the dominance of bitcoin