The price of Bitcoin (BTC) is even so stuck in what traders hope will be a brusk-term downtrend as the touch of the April 18 rumors of a crackdown on "unnamed fiscal institutions" for facilitating money laundering using cryptocurrencies has yet to be shaken off.

Information from Cointelegraph Markets and TradingView shows that since being pummeled beneath the $51,000 level on April 18, the price of BTC has been trading in a range between $52,500 and $57,500 and establishing a descending pattern of lower highs and lower lows.

BTC/USDT 4-hour chart. Source: TradingView

While regulatory concerns may have played some office in the current drawdown, there have been several other significant developments that have affected BTC'south recovery.

According to Micah Spruill, managing partner and chief investment officer at S2F Majuscule, a 20% to 25% driblet in the Bitcoin hash charge per unit acquired by mandatory ability blackouts in the Xinjiang region of Communist china over the weekend "forced approximately 80% of the miners in that surface area offline."

Spruill sees this drop in hash rate, combined with an all-fourth dimension high in the Bitcoin futures open interest charge per unit as the catalyst for "the perfect scenario for a major over-leverage washout."

In terms of what comes next for Bitcoin, Spruill pointed to an increment in bullish sentiment among analysts and traders "after much of the over-speculation in the market this month was tempered past the price pullback."

Spruill said:

"Currently, the on-chain metrics are looking incredibly salubrious with accelerating growth of new entities joining the network, increased user signups on major exchanges like Binance, and continued bullish internet exchange outflows in both Bitcoin and Ethereum."

Bitcoin's electric current trading range may be dominated by bots

David Lifchitz, master investment officer of ExoAlpha, echoed Spruill's perspectives, also pointing to regulatory concerns in the United States and the appear ban on cryptocurrencies in Turkey equally "the friction match that lit the burn down of an overleveraged trading environs" based on the perpetual swaps funding rate before and after the plunge.

According to Lifchitz, Bitcoin is now back in the "$fifty,000 – $60,000 twilight zone," which is characterized by institutional dip-buyers with orders at the $l,000 level, retail FOMO — the fearfulness of missing out — in a higher place $60,000, and "trading bots playing ping-pong in the range in between."

Since the drawdown, Lifchitz has identified a temporary back up for BTC in the centre of the range, effectually $54,000 to $55,000, just yet considers information technology "besides early on to say if the dip is over."

Lifchitz said:

"Without any strong catalyst, breaking above $60k looks hard at this time, and a break below $50k may drive Bitcoin down to $30k. Traditional markets showing signs of exhaustion may also put a dent on the crypto markets recovery."

Ethereum price hits a new loftier

Bitcoin'due south current downtrend has opened the door for Ether (ETH) to step into the limelight, with the meridian-ranked altcoin past market place capitalization striking a new all-fourth dimension high at $ii,644 on the back of $47.iii billion in trading book.

ETH/USDT 4-60 minutes nautical chart. Source: TradingView

Ether'due south rally was accompanied by a 25% rally in the price of Maker'due south MKR, i of the oldest decentralized finance projects on the Ethereum network, which reached a new all-time loftier of $four,980.

Solana's SOL has also been a strong performer as of tardily, surging 26% overnight to achieve a new record loftier at $39.72.

The overall cryptocurrency market place cap now stands at $2.02 trillion, and Bitcoin's dominance charge per unit is 49.6%.