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Bitcoin would have bottomed out with strong April correction, says Kraken analysis

Despite having remained in a price range below USD 60,000 in recent months, the data on chain of Bitcoin indicates that institutional demand remains strong, claims Kraken. The exchange contends that the local low of $ 47,000 in April may have marked the bounce point towards new all-time highs for bitcoin price.

BTC price momentum in the first half of April was remarkable, Kraken notes in its report. However, after hitting a new all-time high on April 14, above $ 64,000, the decline in the hash rate and a succession of subsequent liquidations led to an April close in the red for BTC. This had not happened since September 2020, Kraken noted.

April ended with a -2% return for bitcoin, in contrast to a 47% boom of altcoins, and with a drop in bitcoin dominance below 50%, which had not occurred in the last three years, Kraken claimed. Another notorious fact that occurred in April was the increase in the price of ether (ETH) in BTC, also to levels of three years ago. The latter, according to Kraken, confirmed that altcoins continue to gain ground against bitcoin.

As seen in the following graph, which represents the percentage returns of BTC (gold), ETH (blue) and the price of ETH in BTC (red), as of April 30, the price of BTC was below its opening price in that month. At the same time, the returns of the Ethereum cryptocurrency and the price of ETH measured in BTC at the end of April both coincided at 155%.

While BTC closes April with -2%, ETH reaches a 155% return in the month.

At the time of writing this article, ETH continues with a rebound similar to or greater than that of April, while that BTC recovers slightly and fluctuates around USD 58,000.

ETH, meanwhile, has come quite close to USD 4,000 and is currently trading at USD 3,945, as can be seen in the CriptoNoticias price calculator. The price of ETH in BTC, which ended April at 0.04989 BTC, has risen to 0.06669 BTC.

Market growth in April was based, in part, on a 119% boom in projects around non-fungible tokens (NFT), although this sector also declined in that month, highlights Kraken. The NFTs came from growing 165% in March.

Dogecoin, boosted mainly by the comments of Elon Musk, registered a rebound of 529% in April. It went from USD 0.05381 at the beginning of the month to close that period with USD 0.3385 .

Performance BTC’s negative compared to the double-digit advances of altcoins had a direct impact on the decrease in the dominance of bitcoin , which had shown a 73% dominance in the cryptocurrency market at the beginning of the year and which ended April with a 49% dominance. At the time of writing this article, the dominance is 47.81%.

As the report shows, the important correction in April did not stop institutional initiatives in favor of bitcoin and other cryptocurrencies. For example, in mid-April the announcement of the financing of JP Morgan and Mastercard to Consensys to promote more DeFi projects in Ethereum was known, reported by CriptoNoticias. On the other hand, at the end of April the South Korean video game company Nexon, acquired USD 100 million in bitcoin for its treasury reserve, according to CriptoNoticias reported.

In a tweet this Saturday, the Analyst Willy Woo confirmed on Twitter that the transfer of BTC to large holders , in this bitcoin cycle, is unprecedented. “There is no way we will enter a bear market. This is obvious this week from price action, but two weeks ago it didn’t feel that way, ”says Woo.

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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