On April 1, the crypto market began to recover despite a significant downturn in the previous quarter. Bitcoin and several altcoins showed growth amid declining cryptocurrency balances on exchanges.
Brief Market Overview
Bitcoin prices rose to $84,000, while altcoins like Pepe, EOS, Bonk, and Farcoin increased by over 5% in the past 24 hours. The total trading volume across exchanges rose by 18%, indicating a return of investors after a substantial correction.
Potential Growth Factors
The reduction in Bitcoin and Ethereum balances on exchanges suggests easing selling pressures, which may contribute to growth. CoinGlass reports that 2.2 million Bitcoins and 14.5 million Ethereums remain on exchanges, the lowest in recent years.
Technical Analysis and Forecasts
The observed growth may be temporary and represent a 'dead cat bounce,' where an asset in a downtrend temporarily recovers before resuming its decline. Geopolitical risks and technical indicators, such as trading below the 50-day moving average, suggest the downtrend may continue.
Despite some favorable factors, there is a significant risk that the current correction is temporary. Investors should consider potential changes and be prepared for fluctuations in an uncertain market.
