Global Cryptocurrency Market Experiences Significant Downturn
The weekend saw a dramatic plunge in the global cryptocurrency market, shedding an astounding $300 billion in value. The market value tumbled from $2.75 trillion to a low of $2.35 trillion, triggered by the announcement of sweeping global tariffs by former President Donald Trump.
Bitcoin Faces Substantial Decline Amid Rising Trade Tensions
Bitcoin (BTC), the leading cryptocurrency, has seen its value slip below the $80,000 mark. This downturn is a reflection of the growing investor anxiety amid escalating global trade tensions. The decline in Bitcoin is part of a larger market selloff, which has also seen U.S. equities experiencing their worst trading session since the COVID-19 crash in 2020.
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Investors Hunt for Market Bottom and Opportunities
In this period of widespread market downturn, investors are fervently searching for indicators of a market bottom and potential buying opportunities. On April 7, Finbold utilized the 12-hour Relative Strength Index (RSI) data from CoinGlass to identify short-term trading setups. The average RSI across the crypto market was recorded at 33.50, signaling weakening momentum and a market nearing oversold conditions. This scenario has spotlighted a few assets, such as Ethereum (ETH) and Jito (JTO), which are showing early signs of recovery.
Ethereum (ETH): A Potential Recovery in Sight
Ethereum, the second-largest cryptocurrency, is displaying early signs of a potential rebound after entering oversold conditions. Currently, Ethereum is trading at $1,543.59, with its 12-hour RSI plummeting to 27.5, significantly below the average market RSI of 33.50.
Moreover, Ethereum’s 24-hour RSI is even lower at 27.01, indicating sustained selling pressure and suggesting that a short-term bottom might be forming. Despite Ethereum trading below all major moving averages, these oversold signals across various timeframes suggest that the asset could be nearing a technical floor.
Historically, such RSI levels have preceded relief rallies, attracting traders looking for a low-risk entry point. In the past 12 hours, ETH has declined by 2.36%, adding to its recent downslide. However, with RSI levels firmly in oversold territory, the momentum seems to be shifting. If buying interest gains traction, Ethereum could be poised for a short-term bounce.
Jito (JTO): Signs of a Potential Rebound
Jito (JTO) is currently trading at $1.5711 and is showing potential signs of a rebound after entering deeply oversold territory. The token’s 12-hour RSI has dropped to 27.14, considerably below the average RSI of 33.50, indicating strong selling pressure that may be nearing its end.
Interestingly, Jito’s price has already begun to recover, gaining 1.14% over the past 12 hours, a signal that buyers might be stepping back in. For investors, these conditions suggest a possible short-term bottom, positioning JTO as a candidate for a near-term bounce.
However, while oversold RSI levels may signal a potential buying opportunity, RSI alone is not a definitive indicator of a reversal. A sustainable recovery would require confirmation through rising trading volumes and improved broader market sentiment.
As the cryptocurrency market navigates these turbulent waters, investors and traders are advised to remain vigilant and informed, ensuring they make well-considered decisions in this highly volatile environment.
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