Crypto market trading patterns indicate a slowdown

After the recent Bitcoin rally, which took it above $64,000, there has been a slight pause in upward movements, leading to the crypto market trading patterns slowing down.

After an initial jump at the week’s beginning, crypto market trading patterns have cooled down. The slowdown was prominent in the Bitcoin rally, which likely caused the cooling of token prices. The latest Bitcoin rally came as a catalyst for a price hike across multiple tokens. Most consolidated above their earlier trading ranges as well. While BTC settled above $60,000, ETH went over $2,600.

The slowdown in the crypto market has come along with a partial dip in global equity markets as well. Although they are not linked technically, sentiments play a big role in the crypto market. Government regulations and policies play a crucial role in shaping the crypto market as well. Favorable regulations can foster innovation and attract investors, while restrictive measures can dampen enthusiasm and hinder growth.

Global crypto regulatory updates have also progressed, but a consensus among major economies might benefit the crypto market.

During periods of market turmoil, investors may seek refuge in crypto as a potential safe haven, leading to positive correlations. However, in other periods, crypto tokens may exhibit independent movements driven by factors specific to the crypto market. It had happened earlier this year when the spot Bitcoin ETFs were majorly responsible for driving the rally.

BTC/USD 1D price chart

Bitcoin is currently trading at around $62,800 on August 27, 2024, with BTC/USD trading lower by a margin of around 2% in the last 24 hours. Bitcoin’s market cap was trading at around $1.2 trillion in the last 24 hours.

BTC/USD is trading higher than its 20-day EMA (around 60,000), as BTC’s 24-hour volume was at approximately $28 billion. The global crypto market cap decreased by around 2%, trading above $2.1 trillion. BTC’s year-to-date returns are above 49%.

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