Bitcoin
Bitcoin lost nearly 7.5% in the week from April 14 to April 21, falling from $30 498 to $28 220.
Five out of seven days the world’s first cryptocurrency ended in the red zone. The biggest drop was recorded on Wednesday, April 19, when BTC lost more than 5% at once.
There are different points of view regarding the decline. For example, Joel Kruger, a financial markets strategist at LMAX Group, a crypto-trading company that owns several trading platforms, is sure: The problem is simply a technical correction.
According to the specialist, people simply decided to lock in profits after a few days of impressive growth. In the cryptocurrency itself, he doesn’t see a problem.
Another reason that may deter investors from buying is inflation. On Wednesday came out the statistics on price growth in the UK.
It was worse than predicted and broke the trend: before that there had been a three-month decline. This time the figure was again was once again higher than 10%.
There is also talk that the U.S. Federal Reserve will raise its key rate again by 0.25 basis points.. At least, that is the position.
The Atlanta-based regulator’s spokesman, Raphael Bostic, takes this position.
Clara Medalie, research director at cryptocurrency market Kaiko, thinks the problem is a lack of liquidity in the market.
This is due to the fact that in March two banks that worked with cryptocurrencies were lost at once: Silvergate Bank and Signature Bank.
Medali is sure that it is hard to believe in a bull rally in the cryptocurrency market, as there is a high probability of serious pullbacks.
On Tuesday, April 18, Fed Chairman Gary Gensler again hinted that cryptocurrencies should adjust to existing legislation and that some of them are securities.
From the position of technical analysis, it looks like at the moment the forecast of cryptoanalyst Nicholas Merten, who suggested to sell BTC at $29,000-$32,000 range is justified.
Last week we noted that $29 380 level is a support level. However, bitcoin steadily fell lower, and now this level has become a resistance level. The new support level is around $26,541.
The Fear & Greed Index rose to a new high of 69 points on April 17. By April 21, however, it had descended into the neutral zone. On Friday afternoon it is 50. Thus, the index is in a neutral zone.
Ethereum
Over the past week, Ethereum has fallen by almost 8.5%. Almost all of the decline occurred on Wednesday, April 19, when the coin lost 8.08% at once.
Many pundits expected a decline immediately after the Shapella update, as coins became available for withdrawal in the steaming.
However, this did not happen due to the so-called “exit queue”.. It has been modeled in such a way that the amount of air being shot is limited.
In general, Etherium was negatively impacted by the same news as Bitcoin. However, there were some distinctive points.
An interesting trend is observed in such an indicator as open interest. It represents the number of open and outstanding futures plus options on the instrument.
This indicator has been increasing steadily since March 11. The trend did not change until April 13, and from April 14 the indicator began to decline.
A trend change usually indicates that there is a change in market sentiment. The ether rallied until April 16, but the indicator pointed to a decline in investor interest as early as April 14.
From the point of view of technical analysis, the bullish trend has changed into a bearish one. Further developments will depend on how the price behaves at $1 900.
If it goes lower, we can expect a decline to $1 830. The level of resistance is at $2,140.8, the high of April 2023.
Shiba Inu
Like bitcoin and ether, Shiba Inu declined in value over the week. However, the decline was slightly less, amounting to about 6.2%..
While the first three sessions of the week did not portend any negativity and the price of the coin was rising, the end of the week was colored in red.
Shiba Inu, like most stabelcoins, follows bitcoin’s lead. We can conclude that the SHIB token price was influenced by the same news that affected BTC.
The Shiba Inu ecosystem itself continues to evolve. In particular, the construction of our own meta-universe continues.
On April 10, the project team announced, a new social media account.. But project advisor Marcie Jastrow announced that Hollywood is already interested in the meta-universe.
It’s worth noting that it’s not yet known when the work will be finished.. By the end of 2023, the meta-universe will be partially ready. About this reported on the official Shiba Inu blog.
From the position of technical analysis, the coin is in the middle of a wide range between support $0.00001020 and resistance $0.00001186.
Thus, during the week of April 14-21, 2023, most cryptocurrencies declined in value.
The main reasons for this outcome were the statements of the authorities of developed countries, statistical data on inflation and profit taking by investors.