State of the Crypto Markets

Macro Overview

This week, we saw a massive sell off in the market, with BTC falling below $28,000 and ETH losing its $2000 mark. The significant drop in the value happened mainly after the release of UK consumer price data on Wednesday, which revealed that inflation remained above 10% in March.
This added to concerns that central banks would need to continue increasing interest rates, which caused traders to pause. Prior to this, Bitcoin had increased by about 80% this year, mainly driven by speculation that interest rate cuts were likely to occur.
Recent economic indicators from the US suggest that the Federal Reserve is unlikely to stop increasing interest rates due to concerns about regional bank crises. While a measure of US inflation showed some signs of improvement in March, it may not be enough to prevent the Fed from changing course.
However, the Indian Stock Market, the US Markets are positioned in bullish note and after the mild correction, Bitcoin will be following a similar trend.

Crypto Market Overview

Bitcoin price loses directional bias

This week, we saw a massive sell off in the market, triggering liquidations of $175 million worth of long positions across crypto markets. Last week saw a significant surge in Ethereum’s value, with the ETH surpassing the $2000 mark and BTC crossing $30,000 for the first time in nine months. This bullish movement was followed by many other ALT tokens also making impressive gains. Many tokens like AVAX, GRT, and NEAR also saw gains of over 10%.

Bitcoin: Technical Analysis

In our previous State of The Market Report dated 24th March we mentioned “The more BTC resists a sharp pullback from $28.6K, the higher the chances of it breaking on the upside and price targeting $34K.”

Bitcoin recently experienced a surge in value, hitting an impressive $31,000. However, this was followed by a period of consolidation and a massive selloff in the market. As a result, BTC is currently trading at $28,190.

With the directional bias of the bulls now changing momentarily, it may not be profitable to enter a long position. Instead, a small relief could potentially lead to further dump in the market. As traders look to navigate this market, it’s important to note that the next support zone for BTC is forming at $27200.

This support zone is significant as it coincides with a previous zone and the 55 EMA. This convergence of technical indicators suggests that $27200 could be a key level of support for BTC going forward. As always, it’s important to keep a close eye on market movements and to make informed decisions based on the available data.

Source: Tradingview

Ethereum: Technical Analysis

In our token analysis report dated April 4th, we were able to catch the momentum of ETH from $1860 to $1980. However, after marking a local top at $2140, ETH experienced a massive selloff and is currently trading at $1910. As traders look to navigate this market, it’s important to note that the next support zone for ETH is forming at $1860-$1840. Before making any directional positions, it would be wise to observe the reaction of the market at this level.

Source: Tradingview