Crypto market volatility dips as Bitcoin consolidates above $42,500

Crypto market overview: After recording high volatility last week, Bitcoin, Ethereum, and other leading cryptocurrencies are trading in a narrow range ahead of the Federal Reserve’s rate hike decision. Bitcoin is currently trading at $42,970 with minor gains in the last 24 hours, while Ethereum has jumped more than 2.2 per cent to move above $2,360. The market capitalisation of the crypto has also seen a 0.74 per cent uptick in the last 24 hours to move above $1.65 trillion. 

The Crypto Fear and Greed Index has remained relatively unchanged, showing a 2-point dip and currently hovers around 62 points. 

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Rajagopal Menon, Vice President, WazirX said, “Bitcoin's surge before the upcoming halving has overshadowed market sentiment tied to the Federal Reserve's interest rate decisions. Recent weeks have seen increased Bitcoin network activities and growing use cases for BRC 20, propelling prices upward despite uncertainty surrounding Genesis's asset sell-off.” 

“Anticipated stability in Bitcoin's price movement is expected with an augmented inflow leading up to the pre-halving stage and increased exposure to ETFs. Despite the lateral market movement, it has successfully mitigated volatility amid external conditions,” Menon added. 

Underlining the need for Bitcoin to break its current resistance, Sudeep Saxena, Co-founder, CoinGabbar said, “As Bitcoin struggles to break free from its current range-bound state, the recent surge in altcoin prices faces resistance from a strengthening US dollar. Traders and investors are closely monitoring the market, speculating whether Bitcoin will break out of its stagnant phase or remain constrained within its current range.” 

CoinSwitch Markets Desk, highlighting a decline in Bitcoin price volatility, said, “As BTC continues to trade in the uptrend narrow channel, its volatility continues to be on the lower side. BTC has already printed five consecutive monthly green candles in the wake of the recent ETF and upcoming halving in April. It should be interesting to see if we see one more monthly green close as it has only happened once in the last 7 years.” 

“Ethereum on the other hand has shown strength in the last 24 hours, as it reached its 16-day high with its top layer-2s like OP and ARB following suit. This could also be an indication of a layer-2 rally that might come if ETH pumps further from here,” added CoinSwitch. 

Vikram Subburaj, CEO, Giottus shared the outlook for the crypto market. Subburaj said, “As Bitcoin consolidates near $43,000, the volatility in the crypto market has tapered. Traders are awaiting Bitcoin’s next big move in either direction as daily trade volumes remain below $50 billion, down from a peak of $135 billion in January. Bitcoin enthusiasts hope that the asset can move towards $45,000 once $43,000 is taken.” 

“Ethereum has risen by 2 per cent today and is up against its next key resistance at $2,400. Other key altcoins have showcased muted price action today. Solana, hit by an outage in the network, fell to $93 but has recovered to $96 during the day. Short-term upside targets for key altcoins: Ethereum ($2,400), BNB ($310), Solana ($100), Cardano ($0.54), and Polkadot ($7),” added Subburaj. 

Edul Patel, CEO of Mudrex, said, “BTC though, has not surpassed the $43,500 resistance, suggesting insufficient momentum for a strong breakthrough. A potential bearish momentum could emerge if BTC closes below the support level. On a different note, Ethereum is striving to find stability above $2,328, with the next obstacle at the $2,400 level.”