Bitcoin and altcoins are falling toward strong support levels, which appear likely to hold in the short term.
Bitcoin (BTC) has fallen about 12% in April, and if bears sustain the lower levels, it will be the worst-performing month since November 2022, according to data from CoinGlass. Bitcoin bulls could continue to face challenges in May because the month has produced a negative monthly close for the past three years.
The near-term uncertainty in Bitcoin’s price has resulted in net outflows from the spot Bitcoin exchange-traded funds for three consecutive days from April 24, per Farside Investors data. This suggests that traders are cautious and are waiting for Bitcoin to resume its upmove before buying again.
Even as Bitcoin searches for direction, select altcoins may start to perform. Analysts from crypto analytics platform Santiment said the gas fees on Ethereum network fell to a six-month low, indicating a “lack of demand and strain on the network.” This suggests a market bottom, which could trigger a possible turnaround in Ether (ETH) and associated altcoins “sooner than many may expect.”