The most valuable cryptocurrency, by market capitalization, was recently trading at $39,650, down marginally from the previous day. Ether, the second-largest cryptocurrency by market capitalization, followed a similar weekend holding pattern and was recently trading at around $2,930, down nearly a percentage point.
Most major cryptos in the top 20 by market cap were mostly down, with DOT and MATIC losing 4% and 3%, respectively, at times. DOGE and SHIB, two popular meme cryptocurrencies, have lately lost more than 2% of their value. As is typically the case on weekends, trading volume was minimal.
The price of Bitcoin (BTC) is expected to correct further as a result of the three-month-old ascending channel. The coin price has fallen below the $40,000 support after a successful retest of the breach resistance trendline. However, a bullish reversal in the RSI chart throws doubt on a true collapse.
Bitcoin(BTC)- The price has been resonating in an ascending channel in an inverted flag pattern for the past three months. However, because it breaks certain significant horizontal resistance levels without a meaningful follow-up, this price pattern might be highly deceptive.
On April 6th, the BTC price saw this behavior with a $45,000 fake out, which prompted a large sell-off. The sellers kept putting pressure on the coin price, and on April 11th, the inverted flag pattern was broken massively.
The BTC price has challenged the flipped resistance trendline twice, after roughly two weeks of retesting. These reversals indicate that traders are dumping at higher levels, leading to a $40,000 crash. Alternatively, the $40,000 collapse was not as dramatic, and a move over $40,000 is still possible.
The new bearish crossover of the 20- and 50-day EMAs re-establishes a negative alignment among the key EMAs (20,50, 100, and 200). Furthermore, the fact that these EMAs are continually decreasing indicates that the selling is in charge.
During the retest, the RSI slope remains below the neutral zone, indicating that traders are still negative. Furthermore, a recent breach below the 14-SMA may strengthen the $40000 support level.
For about two weeks, the Ethereum(ETH) price oscillated between $3,160 and $3,000, resulting in a tight range. The sellers, on the other hand, gained control of the market’s current volatility and went through the bottom support. The altcoin’s price might plummet to $2,800 as a result of the range impact.
Ethereum(ETH)- The price dropped from the $3,600 barrier as a result of Bitcoin’s flash plunge below the $4,500 support. The modest downturn sent the crypto down by 16%, making it near the psychological support level of $3,000.
Furthermore, buyers failed to maintain above the local support level and led in a tight range. The coin price exceeded the $3,000 level on April 22nd, indicating that the consolidation was in favor of sellers. Also, an impending support trendline might reinforce the $2,800 support zone, halting the recent slump.
With a considerable rise in bearish histograms, the MACD indicator displays a declining momentum of the rapid and slow stochastics going into a negative zone. As a result, the indicator predicts that the negative trend will continue. The freefall of the 20 DMA is about to break below the 50 DMA, signaling a bearish alignment and a selling opportunity.
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DISCLAIMER:
Any opinions, news, research, analyses, prices, or other information discussed in this presentation or linked to from this presentation are provided as general market commentary and do not constitute investment advice.
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