Weekly market recap(from March 28th to April 4th)
After the liquidity crisis temporarily stopped, another incident happened. OPEC+ announced that it will make additional production cuts last week. Apart from the planned production cuts, several members have made voluntary production cuts and the total production cuts are expected to reach 2 million barrels per day. This event brings uncertainty to the gradual reduction of inflation. The impact of the production cuts will take effect in about two months.
Employment data for March will be released on Friday. This will be one of the factors for the Fed to decide on the monetary policy. The other two are the liquidity crisis of financial institutions and the rebound in inflation brought by crude oil production cuts.
Under such circumstances, the crypto market has been fluctuating for a long time, and the volatility may start to increase this week.
BTC
BTC remained fluctuated at a high-level last week and the price did not fall below 27000. The trading volume is not as crazy as in the previous few weeks, gradually returning to the average level, and the trading volume on weekends has also decreased significantly. The strength of the bulls hindered the pullback of the bears, but it could not stand above 29000. Another difference from the previous week is that the bears were weak, as can be seen from the length of the red candles and the volume in the graph.
Conclusion: Mostly fluctuation. The bulls fell into trouble. The price could not break through the high point, but it did not pull back downwards. The Bulls have been exhausted. A continued reduction in volatility may result in a significant price change. We maintain last week’s support level at 32000 and resistance level at 25000.
ETH
ETH outperformed BTC last week. However, the trading volume has decreased compared with the previous weeks. The gains of ETH exceeded that of BTC last week. Price approached the March highs with a few red candles. But the same as BTC, although the bears have weakened compared with before, the bulls have not occupied a new level. The price fluctuates at a high level, which will consume the power of the bulls.
Conclusion: Mostly fluctuation. A lower volatility means big changes to come. But continuous volatility at high levels is not friendly to the rise. Based on the current gap between bulls and bears, we draw this conclusion. We maintain the original support level at 1615 and the resistance level at 2000.
SOL
SOL did not return to the high like BTC and ETH. When the price moves away from the previous low, the strength of the bulls decays. As we expected, SOL fluctuated within a small range last week. There is also a significant reduction in transaction volume.
Conclusion: Mostly fluctuation. In the graph, we can clearly see that the volatility of SOL has decreased, like the waves returning to peace. Its performance in the previous weeks was also weaker than that of BTC and ETH. So we think SOL will continue to fluctuate. And it is more likely to go down after the fluctuation. We maintain the support level at 16 and the resistance level at 26.
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 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.
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