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Crypto Markets Open The Week On Low Energy As Prices Pull Back.
After a hot weekend, crypto prices seem to shift downward at the start of a new week.
The last few days were great for the crypto market as coins like Bitcoin and Ethereum scored the highest values seen in over a month. Bitcoin reached the highs of close to $24k while ETH touched $1,600. A lot of other cryptos saw double-digit spikes as the market appeared to be preparing for a sharp bull run.
However, things seemed to have changed as the weekend came to a close. At the time of this writing, a lot of the coins are in red. Bitcoin is trading at around $21,919, while ETH is going for $1,523. BTC has recorded a 24-hour drop of 3.5%, while ETH has posted a 5.4% decrease. Others like Solana (SOL) see a 5.7% reduction in 24 hours and a 7-day pullback of 8%. It’s not clear what prompted the pullback or whether the market could reclaim the glory of last week.
Dead Cat Bounce?
Just before the weekend, when crypto prices seemed to be mounting a major comeback, some analysts opined that this wasn’t something to celebrate too much because it was bound to shift back to bearish sentiments. Some called it a “dead cat bound,” a term used to describe a situation where market prices surge and portray a false bullish tendency before an unexpected drawback.
At the moment, it’s hard to conclude whether the recent price upswing was a dead cat bounce or whether it was a short period of bullish preparation for a possible surge in the near future. However, it’s worth noting that the crypto market has a history of price spikes, especially before and during some weekends. Time will tell whether the bulls will prevail or whether the crypto winter will kick back in.