Weekly crypto market analysis (24 - 30 April)
Last week brought high volatility to the crypto market, with digital assets alternating positive days with correction periods, and overall we ended on a slightly upward trend in the last days of April.
Monday - April 24th - brought a market rebound after the declines from two weeks ago, and the most important crypto asset, Bitcoin, seemed to be rising again towards the $30,000. However, at the end of Tuesday we saw an abrupt depreciation of BTC by over $3,000 in just a few minutes, dragging down the entire market on rumors that massive sell orders had been introduced into the market from US government wallets (holding confiscated BTC from criminal cases in the crypto sphere) and from the defunct Japanese exchange MT. Gox, which is in the process of liquidation after its 2014 bankruptcy. These rumors proved false and investors re-entered buying, bringing the market back on an upward trajectory.
The last days of the week were relatively stable, so BTC ended April in the $30,000 zone and ETH at $1,900. Most major altcoins had mixed performances without major variations, oscillating between -10% (ZIL) and +10% (SOL).
The first week of May will bring to the forefront the monetary policy meetings of the US central bank - FED, and the European Central Bank (ECB), so we can expect periods of high volatility again.
The total capitalization of digital assets has risen slightly towards the $1.20 trillion zone.
Bitcoin had a positive week with significant price variations, and at the end of April the largest digital asset was again in the $30,000 zone.
The major event of the week took place on Tuesday evening when Bitcoin fell by about 10% in a few tens of minutes to $27,000, recovering in the following days. It is noteworthy that the market absorbed these declines and once negative rumors were refuted, investors began to “buy the dip” and thus brought BTC back above the $29,000 zone.
The immediate positive reaction of the market points to the confidence of its participants in the evolution of digital assets during this period, and it seems that crypto market players are making every decline an opportunity to accumulate BTC and other crypto assets at good prices.
From a technical analysis standpoint, the upward trend that began in January is still intact, with BTC still trading within the “ascending channel” formation and above the 200-week Moving Average.
If the upside direction is maintained, we could reach BTC in the $32,000 zone - the upper band of the “channel”. A market correction could pull back Bitcoin’s price to the $25,000 - $26,000 zone where we find both the lower line of the channel and the 200-week Moving Average.
In the coming days we may see high volatility in the crypto market due to the fact that we will have monetary policy meetings of FED and ECB, events which as we have seen in previous months can move both international financial markets and digital asset markets.
ETH had a relatively stable week and the price rose slightly, returning above $1,900 in the last days of April.
The shock of BTC’s abrupt declines on Tuesday was reflected in the entire market, so ETH was also influenced, falling below $1,800 . However, the decline was short-lived and investors brought ETH back on a positive trend so that the price rose and stabilized around $1,900 in the last days of the week.
From a technical analysis standpoint, the lower line of the “ascending channel” did its job as support and ETH was rejected upwards from that level, confirming the upward pattern that began in January 2023.
To validate the upside scenario, we should not see Ethereum’s token falling significantly below $1,700. A positive trading period could push ETH’s price back towards $2,100 - $2,200 towards the upper line of the “channel”.
Increased attention should be paid to macroeconomic news as this could influence market movements and determine trends at least in the short term.
EGLD had one of the most volatile weeks in recent times, with the price fluctuating by over 20% between $40 and $50.
While the first part of the week was fairly neutral, Wednesday brought massive buy orders, pushing EGLD’s price up to $50 . The increased interest in MultiversX’s token may be due to the fact that the team from Sibiu launched the first platform for creating and trading institutional NFTs where EU public institutions and others can have access.
Thus, MultiversX is entering a sector that has been difficult to access until now, namely the web3/blockchain area addressed to government bodies.
At the end of the week, eGold’s price returned below the downward trend line created in August 2022 and within the neutral trading zone of the last 8 weeks. For EGLD to enter an upward trend, it must rise above the $50 with conviction and break through the downside trend line decisively.
In the absence of a distinct market trend in the upcoming period, it is plausible that MultiversX’s token will continue to trade within the $40-45 range, where it has been since March.
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The information in this report was obtained from public sources and is considered relevant and reliable within the limits of publicly available data. However, the value of the digital assets referred to in this report fluctuates over time, and past performance does not indicate future growth.
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