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Theres a relative sense of calm in the cryptocurrency market. Bitcoin (BTC) is below $28,000 (around $27,800) after accumulating a decline of more than 2% on Sunday. Meanwhile, Ethereum (ETH) is at $1,790 after experiencing a similar decline in the last day.

"Bitcoin has remained resilient over the last week or so, resulting in a general improvement in market sentiment," noted Joe DiPasquale, CEO of cryptoasset manager BitBull Capital. The expert highlighted that the reigning cryptocurrency is trading above its 200-day moving average, which is "historically a strong indicator of bullish price action."

However, DiPasquale believes there is some uncertainty in assessing which way Bitcoin will go in the coming weeks. On the one hand, he indicated that there is potential for the world's largest cryptocurrency to rise to the $32,000-$36,000 range, but also enough risk to think about a pullback to $20,000 or $18,000.

The last few weeks showed that cryptocurrencies in general and Bitcoin in particular were resilient to the banking crisis, the regulatory action in the United States and the sharp turn in monetary policy by the Federal Reserve (Fed). So much so that Bitcoin ended the first quarter of the year with a revaluation of almost 70%. However, some analysts point out that it is quite likely that we will see considerable volatility in the market in the coming weeks.

This is because, they point out, market liquidity is dwindling by leaps and bounds, a move that has accelerated following the failures of industry-friendly banks such as Signature or Silvergate.

"Its more indicative of the institutional reluctancy to offer liquidity in the space. A lot of crypto firms dont want to get caught in the middle of a battle between US regulators and exchanges," explained Conor Ryder, an analyst at blockchain analyst firm Kaiko in statements picked up by 'Bloomberg'.

For his part, Mark Connors, director of research at digital asset management firm 3iQ believes that retail investors are "on edge" in the face of a possible increase in market participation. "The tourists are definitely gone. If youre in this, you have to understand that the volatility is there, you dont know where it goes day-to-day, but you understand the trajectory, the adoption, etc," he added.

At the end of March, Binance, the world's largest exchange, recorded spot trading volumes of more than $6 billion with monthly visits from 65 million users. Similarly, Coinbase recorded trading volumes of around $1.3 billion and approximately 33 million monthly visits. On the other hand, a large number of Bitcoins have recently moved off-exchange. According to blockchain data provider CryptoQuant, nearly 46,000 BTC have left the exchange in the last 10 days.

"Bitcoin trading volumes have collapsed, which inevitably makes for a more volatile market. The sharp drop in volumes means that its easier for large orders to move the BTC prices. So sit tight, there could be more wild swings coming. Falling volumes points to waning appetite for Bitcoin at its recent higher levels," explained Fiona Cincotta, market analyst at City Indiex.

In other market news, there have been similar moves for some of the major tokens in the market. Dogecoin (DOGE) trades positive after losing 6% on Sunday, while Cardano (ADA) extends last day's slight gains.

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Calm in the cryptocurrency market; "Bitcoin could rise to $36,000" - ShareCast