BTC Tests Below $56k Overnight

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BTC struggled once more overnight, dipping down to around $55.7k or so. The MFI is still bordering oversold territory however it has yet to definitively cross into it on the 4 hour chart. The MACD’s EMAs are tending downwards however the momentum may be trying to swing upwards. Volume wise, the market is still extremely volatile, with whales battling each other on leverage positions according to transactions on the blockchain. Until much of this is settled, we should continue to expect market volatility.

Something that’s interesting to note, is Ethereum’s attempt at a significantly stronger recovery than BTC each time traders think BTC may be attempting to settle. However, ETH’s tries at a recovery in the short-term are then thwarted by BTC’s downward movement and volatility. This could be a good sign for projects that move with ETH and altcoins in general as well, however, it should be noted that BTC will continue to influence market movement, so it’s important to keep that in mind.