It was a tough week for the cryptocurrency market, as the price of Bitcoin fell below $39,000, indicating that traders are actively leaving positions or putting their money aside to get away from risk, which is indicated by the “Santiment” platform.

📈 A nice refreshing day for # encryptTrading volume rose significantly after a particularly sluggish weekend as prices quickly jumped back to the lows before Thursday. Congratulations to those who were bold enough #buythedip the end of the previous week. 👏 pic.twitter.com/rMBw7kesFz

– Santimentfeed April 18 2022

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According to trackers and providers of data analysis service on the blockchain, Bitcoin trading volume has increased significantly recently, coinciding with the bearish trading sessions.

Previously, a drop in prices was usually accompanied by a decrease in trading volume.

At the moment, Bitcoin has recovered and is back above the $40K level and so are many other altcoins.

In the long term, Bitcoin remains in a downtrend, which indicates that there is no global shift in sentiment among traders and investors.

Could the bitcoin price come back down?

After the prevailing downtrend in the cryptocurrency market worsened, many analysts expressed concerns about bitcoin’s stability as bitcoin’s price was very close to breaking a strong support line formed in February.

The movement of tech stocks and other risky assets was also affected and fell before the first cryptocurrency plunged.

According to analyst Will Chement, bitcoin is still closely correlated with most tech stocks, which indicates that bitcoin will likely follow the performance of this stock in the market.

With the Federal Reserve announcing an interest rate hike, both financial traders in tech stocks and cryptocurrencies have begun moving their money away from risky assets, converting it to fiat currencies or safer investment options like bonds.

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With the emergence of risk aversion in the market, cryptocurrencies may actually lose part of their market value, especially with the tightening of monetary policy in the United States of America.

At press time, Bitcoin is trading at $40,898, having lost 14% since hitting its highest level at the beginning of April.

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