Bitcoin struggling at $40K with crypto market liquidity drying up

Bitcoin lost 5% over the last week, and was trading at $40.2K as of the time of this writing as Ethereum fell 5.8%, and is trading at $3K.

The global crypto market valuation was $1.88 trillion, a 0.19% decrease over the last day. Liquidity in the market also dropped as the total crypto market volume for the day stood at $49 billion, which makes a 18.06% decrease.

The majority of technical indicators are neutral, although short-term buyers are likely to remain active between the $35K-$38K support zone, similar to what occurred earlier this year.

Outlook

• The 100-week moving average, which is now 35.3K, serves as a key trend indicator on the weekly chart. A recovery of BTC will require buyers to keep it above that level.

• The 40-week moving average, $46.8K, continues to act as a strong resistance point.

• In late March, the price was within close reach of an upside target of $50,966, but it retreated, just as it did last September.

• During the past 30 days, popular dog-themed meme coins SHIB and DOGE gained as much as 20%. Price rises were largely driven by the broader crypto recovery which included alternative cryptocurrencies, indicating traders greater willingness to take on risk.

• Additionally, upsides in the crypto market may be weakened as OpenSea, one of the biggest NFT marketplaces, has been sued several times following hacks on its platform. An NFT owner from Texas, Jimmy McKimmy, sued OpenSea for more than $1 million in damages for his stolen NFT, Bored Ape #3475.

• The three leading smart contract-enabled “Ethereum killers” –Solana, Cardano, and Avalanche –saw losses of about 8% over the past week.