Market situation: Was this week’s bitcoin jump temporary?

The market situation of many digital currencies has been declining since yesterday; A move that could be a sign that the recent jump in prices is temporary.

To Report Last night, the US Department of Justice announced that Kevin Desk had seized $ 3.6 billion in bitcoins stolen from the exchange during the 2016 Bitfinex hack.

About six years ago, 120,000 bitcoins were stolen from a Bitcoin exchange, valued at about $ 60 million at the time. Apparently, the married couple was also arrested on charges of money laundering and complicity in the transfer of these bitcoins.

Bitfinx has said it will repay the victims of the 2016 robbery in the form of UNUS SED LEO, one of its indigenous tokens. An hour after the news broke, the price of the Leo token rose 50 percent.

Despite a 50% jump in the price of Leo, Bitcoin and Atrium have both experienced a 3% drop in the last 24 hours. Ripple and Solana fell 4.5 percent and 6 percent, respectively.

Despite the improving sentiment of traders in recent days, analysts expect that market fluctuations will continue for the short term.

Martha Reyes, director of Bequant Exchange Research, said:

Trading volume still seems small. Bitcoin has been able to maintain support between $ 30,000 and $ 40,000 since last year; But it still can not be said that it does not threaten the price. If we want to consider the macro factors, ‌ the lack of trading volume in the stock market and the sharp fluctuations in prices, ‌ have shown signs of weakness in the market of high-yield assets.

Improve traders’ emotions and reduce market fears

The Bitcoin Fear and Greed Index broke out of the “extreme fear” range last week, and there are now signs that traders’ emotions are improving.

The Arcane Research Institute wrote in its report yesterday:

After trading the market for three months with a sense of dread and turmoil, یت Bitcoin investors will now be more receptive to changing sentiment to a state of “greed.”

The last time this index returned to the top from the level of extreme fear, it goes back to July; A move that was later accompanied by an upward jump in prices. This time, however, the jump in prices while trading volume is lower than expected is a sign of weak buyer power. Together, these factors can pave the way for limited price fluctuations in the short term; Especially considering that macroeconomic factors and the regulation of digital currencies around the world can put pressure on the market.

Arkan Research has said:

As the market declines, the $ 40,000 level will be the most important price support we should monitor in the coming days.

Bitcoin price increase against Atrium

As the chart below shows, the price of Atrium versus Bitcoin has recently seen a downward correction. During the last seven days and during the jump in prices in the digital currency market, Atrium’s returns were only 1% lower than Bitcoin. Despite this small difference, breaking the support of the 200-day moving average in the Atrium / Bitcoin market means that a more severe fall of Atrium against Bitcoin is likely in the short term.