Weekly market recap(from April 20th to April 26th)
The cryptocurrencies got strong bullish power after hitting the support level. But as we mentioned all changes are meaningful, retesting the support level is not a good signal for bulls. After Mr Powell made his comment on the pace of rate hikes last week, the entire risky asset reacted with a long-lost sensitivity. While the comment doesn’t include additional hawkish surprises, as a catalyst, it has exacerbated the fear of a lack of bulls in the market, triggering a staged decline.
BTC
As mentioned in the preface, BTC generated a pin-bar again at a given support level. While the strength of the support level has been confirmed, we also remain sceptical that the bulls can hit the next resistance level. The price is more like returning to a state of confrontation between the bulls and the bears. On the other hand, it is worth worrying that the fall before the rebound on Apr.25 was very similar to the fall in December 2021 (two yellow areas). There may be the impact of interest rate hike expectations, however, compared to the late stages of the decline, it is not a good phenomenon to appear after a 3-month fluctuation, at least it means that the energy of bulls to buy dips is very weak.
Conclusion: Mostly fluctuation. Respecting the current trend objectively, we have come to this conclusion. The current support level is very weak, and the bulls and bears are very close. This week’s trend will determine whether the price will rise or fall for a period of time. We maintain the support level as 39600 and the resistance level as 42000. Although it has been tested many times, it will still play a role in the short term.
ETH
Price also fell last week and reached a level lower than the previous low. Affected by the rising performance in March, the given support level of ETH is lower than that of BTC, so the price is still a part of the distance from the support level after the rebound. Based on this logic, we believe ETH is in a better position than BTC and is more likely to break out of the previous high on Apr.21.
Conclusion: Mostly fluctuation. The bullish power and the bearish power are approaching, and there is a high probability that the shock will continue. We continue to hold the resistance level as 3290 and the support level as 2870. Judging from the Long position chart (only for display data), it is not difficult to see that ETH has given back 50% of rebound gains this month, which is significantly better than BTC. So after the fluctuation, we will be more inclined to the upward trend.
SOL
Judging from the long position chart (data display only), SOL gave back close to 65% of the rebound gains in March, which is between BTC and ETH. So on a large scale, we think SOL and ETH can maintain a positive trend. Judging from last week’s performance, the red arrow hit the previous low again, but it did not effectively break the previous low (the support level) on April 25, and the bullish power did not disappoint.
Conclusion: Mostly fluctuation. In the near term, the pin bar's rebound has been suppressed. The battle of bulls and bears makes the price move in a very narrow range. We maintain a narrow range (99, 112), and how to break out the range eventually will produce a phased trend.
Disclaimer: Nothing in the article constitutes investment advice. The article objectively expounded the market situation and should not be construed as an offer to sell or an invitation to buy any cryptocurrencies.
Any decisions made based on the information contained in the article are your sole responsibility. Any investments made or to be made shall be with your independent analyses based on your financial situation and objectives.
