Bitcoin’s price has decreased today, causing traders to become frustrated and market sentiment to suffer as a result of ongoing congestion. According to Cointelegraph Markets Pro and TradingView, Bitcoin is trading below $28,000 as of May 8th. The largest cryptocurrency is still experiencing a dip in sentiment due to transaction fees reaching their highest levels and the mempool becoming nearly 98% full. Market participants believe that the problem lies at the center of the mass transactions “spamming” the Bitcoin network. The largest global exchange Binance repeatedly halted BTC withdrawals, exacerbating the problem by blaming “congestion” for the outages and creating a backlog of withdrawals, which worsened market sentiment.
Traders Look for Potential Targets for Long Entry Amid Extended Downtrend
Despite the ongoing downtrend, Bitcoin traders are beginning to look for potential targets for long entry. Founder and CEO of trading firm Eight, Michaël van de Poppe, has set his sights on $27,400 and $26,800, respectively. Van de Poppe noted that there is a “gap” in CME Group Bitcoin futures markets due to the difference in weekend open and close prices, suggesting that an uptick may occur to “fill it” in classic style. Other traders are eyeing targets closer to spot, while some are choosing to wait until there is a proper break or sweep of either of the range extremes before making any trades.
In conclusion, although the ongoing congestion and withdrawal halts have caused a decrease in Bitcoin’s price and market sentiment, traders are still hopeful for potential targets for long entry amid the extended downtrend.