On the cryptocurrency market another change of scenery. Bulls rule again. But how long will it last? And why was the fall so short-lived this time?
Bitcoin
Bitcoin rose more than 8% in the seven days between April 21 and 28. This was the reverse of the previous week, when the value of BTC lost more than 7.5%..
And all the growth was provided in the last four days. On Monday, April 24 the value of bitcoin was below $27,000, but since Tuesday the trend has changed.
What caused the growth of BTC? According to analysts of the investment company FxPro, the fall was purely technical in nature: investors were getting rid of overheated asset.
At one point, bitcoin was down to its 50-day moving average, but then it started rising.
BTC saw strong volatility on April 26. That day, Arkham analysts reported the movement of cryptocurrency from the wallets of the exchange MtGox and the U.S. federal authorities.
As a result, on some exchanges bitcoin lost up to 7% at a time. Then, however, the information was refuted, and BTC returned approximately where it was.
Of course it’s worth noting the problems that First Republic Bank had. According to some reports, it is on the verge of bankruptcy. In the past three days, the stock has fallen more than 55%.
And, as we know, banking problems are quite positive for the value of cryptocurrencies, as increasing distrust of traditional credit institutions makes investors look for a new safe haven.
The bitcoin situation can be characterized as a moderately bullish trend.
In order to identify with certainty the beginning of a new rally, the price must overcome the resistance level of $31,000, the maximum reached in 2023.. The support level is around $29 300 – $29 500.
The Fear and Greed Index started rising again after last week’s Neutrality Clause. The current value is 64.
Ethereum
Ethereum has shown less growth over the past week compared to BTC: about 3%. At the same time, all seven days there was relative calm: the price did not change by more than 2.5% during the day.
Although a number of experts believed that the Shapella update would lead to a sharp drop in the price of ether, it did not happen.
The dynamics of removing coins from the stacking even reverse. After Shapella, more than 570 000 ETH was zapped, data from analytics platform Dune.
Its creator Tom Wan in his social media wrote that most of it had to do with the activities of institutional players.
You can see from the figure that since April 12, the activity of the etherium stackers has increased. Since the update, the top five players have frozen more than 235,000 coins worth more than $450 million in staking.
The amount of ether coming onto the exchange couldn’t even surpass March’s numbers. Fears that all crypto-enthusiasts will rush to withdraw and sell ETH are not justified yet.
Also on the 20th, Devconnect was announced. The event is being held for the second time. It is a series of events on various topics, which will be devoted to the Etherium.
Devconnect is due to take place in Istanbul on November 13-19, 2023. While the news is unlikely to have had an effect on the price of Ether, the event itself suggests that high interest in Etherium persists;
From the point of view of technical analysis, it is too early to talk about a new bullish trend. The reason for it may be a rise in price above the resistance level of $1 940-$1 960.. The level of support is $1,790.
Cardano
Cardano rose in value by 5.5% over the week. The dynamics were similar to bitcoin and ether: the first half of the week was in the red zone, and all the growth came in the period from March 26 to 28.
The main trigger for Cardano’s growth is the very development of the ecosystem. This is confirmed by the Santiment analytics platform.
According to the platform, Cardano ranks third in terms of such Cardano is in third place ahead of its main competitors, Etherium and Avalanche, in terms of developer activity over the past month.
In addition, major players have recently shown interest in the ADA token. Since mid-March, the number of large investors invested in Cardano has doubled, from 4% to 8%.
It’s worth noting: as such, ADA does not have one or more majority holders, which suggests maximum market pricing.
From a technical analysis perspective, Cardano was able to nab a local bottom and rose slightly in price.
To talk about further growth, it is necessary to overcome the resistance level of $0.42. The level of support is $0.372.
Thus, all cryptocurrencies showed growth last week versus declines seven days earlier. The reasons for the growth were mistrust in the U.S. banking system and specific catalysts, which were different for each koin.