Virtual Assets, 'No Trade Zone' Warning..."Rebounded but Direction Lost"

▲ Virtual Assets/AI Generated Image

The virtual asset market successfully rebounded intraday and continues its short-term upward trend, but conflicting signals are being detected regarding the sustainability of this upward momentum.

According to the cryptocurrency specialized media BeInCrypto on April 17 (local time), the total virtual asset market capitalization recorded approximately $2.52 trillion, rebounding 2.77% from the previous day's low of $2.46 trillion. Although the superficial daily fluctuation is limited, the intraday recovery trend is interpreted as a signal showing the market's short-term strength.

Bitcoin (BTC) led the market rebound, rising 2.54% from its low. In particular, SIREN surged by 192%, recording the highest increase among major rising assets. Amidst the overall upward trend in the market, there was a trend of funds concentrating on certain assets.

Positive signals were also confirmed in the chart structure. The total market capitalization is forming a cup and handle pattern on a daily basis, which is considered a typical bullish continuation pattern. The market is currently moving above the Fibonacci 61.8% retracement level of $2.49 trillion, and if it breaks through $2.56 trillion, there is potential for it to rise to $2.65 trillion.

However, signals of a lack of direction are also being detected within the market. BitMEX co-founder Arthur Hayes stated, “The current market is a zone where trading should be restrained.” Indeed, a total of $441 million in liquidations occurred in the past 24 hours, with long positions totaling $211 million and short positions totaling $230 million, almost symmetrical, indicating that the market has not found a clear direction.

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