Analysis of the Big Pancake Market on April 29

On the global financial market chessboard, on April 29, traditional financial markets presented a complex situation. European and American stock markets showed mixed results the previous day, with the German DAX index slightly up by 0.13%, the NASDAQ down by 0.10%, the Dow Jones up by 0.28%, and the NASDAQ Golden Dragon Index up by 0.68%. Meanwhile, crude oil prices fell by 2.03%, gold rose by 0.74%, and copper prices remained basically flat, only slightly down by 0.01%. The dollar index slipped by 0.46%, and the offshore price of the dollar against the yuan also fell by 0.05%. In the A-share market, major indexes were weak and fluctuated downwards yesterday, with transaction amounts shrinking, significant outflows of northbound funds and main funds, and over 70% of individual stocks declining, resulting in a notable loss effect. ​

Such a macro environment has a subtle influence on the cryptocurrency market. The volatility of traditional financial markets can alter investors' risk preferences. When the stock market performs poorly, some funds may flow into the cryptocurrency market in search of new investment opportunities, and vice versa. For example, if the stock market continues to be sluggish, investors may withdraw some funds from the stock market and invest in cryptocurrencies like Bitcoin, hoping for higher returns, thereby providing support for Bitcoin prices. ​

Recently, Bitcoin prices have been trapped in a fluctuation range, approximately between 92935.08 and 95674.04. From a short-term perspective, the market is in a typical consolidation phase. During this phase, the forces of bulls and bears are relatively balanced, and a clear one-sided trend has yet to form. Prices fluctuate frequently within this range, reflecting significant divergence among market participants regarding the future trend of Bitcoin, with both bulls and bears waiting for clearer signals to launch their offensive.