Crypto traders are feeling the bearish sentiment as Bitcoin (BTC) dipped under $26,000 in European morning hours on Monday. Major tokens XRP, Cardano’s ADA, and Solana’s SOL fell as much as 2.2%, continuing a downtrend since last week. Ether (ETH) fell 1.1% despite trading aggregator protocol 1Inch investing over $10 million worth of stablecoins from its treasury to purchase 6,088 ETH late on Sunday. Futures traders are positioning for a bearish market while options activity shows traders expect a further downside.
The technical picture for Bitcoin remains bearish on weekly timeframes, as the price is below its 200-week average and outside of its ascending channel, said FxPro trader Alex Kuptsikevich. The most likely short-term outlook is for a decline to the $23.9-24.6K region. An ascending channel is a price pattern made by higher highs and higher lows – with a break below this suggesting bearish price action among traders.
Despite the bearish sentiment in the crypto market, traditional markets buoyed on Monday, with Shanghai Composite and Nikkei 225 finishing more than 1%, Singapore adding 0.73%, and European indices opening up to 0.36% higher.