The cryptocurrency market has entered the month of April with a series of challenges, showing signs of struggle as the first quarter’s historical data surfaces. Despite a recent all-time high for Bitcoin and altcoins striving to hold on to crucial support levels, the market is exhibiting a downturn. The looming Bitcoin halving event set for April 20 has stirred questions about potential expectations for both Bitcoin (BTC) and Ethereum (ETH).
Bitcoin’s Bearish Week
Bitcoin’s value declined by 8.33 percent in the year’s 14th week, with bearish forces driving the market. Bloomberg’s ETF analyst, Eric Balchunas, highlighted a significant increase in trading volumes, from $42.2 billion in February to $111 billion. Crypto analyst Rekt Capital cautions investors about the precedent set by previous BTC halvings, suggesting the possibility of more profound sell-offs ahead. A notable event was Bitcoin’s inability to breach the $71,700 mark, resulting in a drop below the 20-day exponential moving average price of $67,646 on April 2.
Ethereum Mimics Bitcoin’s Descent
Ethereum has mirrored Bitcoin’s downturn, slipping below its 50-day Simple Moving Average (SMA) of $3,414 on April 2. The uncertainty surrounding the approval of an Ethereum ETF and the SEC’s actions have exacerbated ETH’s decline. With the 20-day EMA on a downward trajectory and the Relative Strength Index (RSI) approaching oversold conditions, Ethereum risks dropping to $2,700 unless it quickly recovers above certain thresholds.
Points to Consider
- The imminent Bitcoin halving may lead to steeper price decreases based on historical patterns.
- Bitcoin’s recovery is crucial to prevent a drop to lower support levels of $59,000 or even $54,298.
- Ethereum’s potential rebound hinges on sustaining prices above its 50-day SMA, with possible targets at $3,679 and $4,000.
Investors and market spectators are keenly monitoring these developments, with the hope that the medium-term target of $80,000 for Bitcoin will manifest while Ethereum seeks to regain lost ground. The current market conditions are a blend of caution and anticipation as major cryptocurrencies navigate the turbulent start of April.