Crypto Market: Can the Price Trend Reverse?

Last Thursday, according to the data Coinmarketrate.com, the Bitcoin price was rejected just below $43,000, and then began to plummet. On Friday, Bitcoin also lost ground at $40,500, and on Sunday, the price also fell to $39,500. Yesterday afternoon, Bitcoin hit a low of $38,260 – the lowest price in the last six weeks.

However, Bitcoin started to recover yesterday afternoon. The price briefly encountered resistance around $39,000.

Bitcoin can Recover

Analysts sharply disagreed on whether Bitcoin will recover at all in the near future. It was clear that in the range 38 000 – 39 000 USD. there will be significant support, but many analysts feared a deeper drop. Perhaps the news that Tesla CEO Elon Musk, the richest man on Earth, bought Twitter gave the market the boost it needed.

Meanwhile, we see that stock markets such as the S&P 500 and Nasdaq have also been able to recover a bit. However, the Shanghai Stock Exchange turned red again.

The US dollar Index (DXY) now seems to be encountering resistance near its peak. In addition, traditional financial markets are still very cautious due to the upcoming Federal Reserve policy against inflation, as well as the war in Ukraine. So it can still be very unstable times.

But can Bitcoin make a trend reversal now?

For Bitcoin, the question is whether this rebound will continue. Bitcoin is at a critical point around $39k, where the price may be rejected and fall again. In this case, BTC may even strive for a deeper minimum.

If Bitcoin recovers immediately, then we can only guess whether it will have enough momentum this time to break through the area between $42,500 and $43,000, or it will be rejected here again. However, it seems that at first Bitcoin may consolidate around the current price for some time. Nevertheless, the analyst of Income Sharks reports that now the price may break out of the downtrend:

The data on the chain also looks very bullish. For example, the number of addresses with 1 BTC or more reached a new historical maximum (ATH) this month:

Meanwhile, the hashrate, or computing power, of the Bitcoin network is also rising to a new level of ATH:

Moreover, it looks like Bitcoin whales have used the drop again to accumulate more BTC again. Recipients with 10 000 – 100 000 BTC Bought 40,000 BTC Worth 1.6 Billion During the Fall:

Altcoin Market

After a few red days, the cryptocurrency market finally turned green again, but not for long. The total market capitalization of all cryptocurrencies is still below $2 trillion, but over the past 24 hours it has decreased by 4.8% to $1.7 trillion.

Will Ethereum return to 3k$?

The Ethereum (ETH) exchange rate began to decline last Thursday and could not stay at $3,000 on Friday. Yesterday morning, the price of Ether dropped to $2,825, which is the lowest price in more than a month.

DOT, BNB, XRP in the black

Polka Dot (DOT) barely keeps afloat after growth. DOT did not break the $18.25 mark and dropped to $17.9 this morning. Nevertheless, the DOT grew by 3.9%. The Binance (BNB) coin also does not look very stable yet, having fallen from $407 to $402 yesterday morning.

Conclusion

Well, now to summarize: on Monday, April 25, the entire cryptocurrency market was under pressure. However, the relief came after a bullish price movement was recorded after the news of the $44 billion takeover of Twitter by the CEO of Tesla.

Bitcoin also experienced a sudden surge in prices after its value fell below the usual level before the announcement. Data on price dynamics obtained using Coinmarketrate.com It is shown that the flagship cryptocurrency dropped a significant part of its value in the early hours of Monday.

However, after Musk announced the purchase of Twitter, BTC made a powerful price rally by 5.72%, reaching the peak of the day at $ 40,366. And we know that the fall in exchange reserves is favorable for further accumulation.

The previous bearish sentiment that hovered over the crypto industry actually became a springboard for further positive price movement, as shown by a Twitter user under the pseudonym “Phoenix”, who reported that metrics are a sign of impending accumulation, and the market can only wait for it to happen.

And so, the Bitcoin price direction is still bullish.

According to Whalemap, a company specializing in blockchain data, the current BTC price correction may not be over yet. Nevertheless, price fluctuations show a more bullish trend than previously observed. Consequently, investors buying crypto assets at the moment will be able to benefit greatly from the market in the coming days.

In addition, the current BTC market price is above the red zone, which is considered a bearish level because it is located below the lower boundary of the price circle. This can be viewed in different ways: perhaps the bearish tendency to dominate the market arose at the wrong time, or the prospect of bull dominance is still strong, which gives grounds for more positive price actions.

Alternatively, it can be concluded that the market is on the verge of a serious blow if there is a negative price action in the current trading period, which will lead to a further fall in the price into the red zone.

However, there are signs that the bullish trend may be short-lived, especially if the Bitcoin price fails to overcome the $39,610 price level.

Cryptocurrency market analyst Michael Van de Poppe noted that the price level of $39,610 is an important level for a breakthrough if the bulls want to move further and develop an upward price trend.

Anything below this level is an open invitation for bears to control the price of BTC, which will lead to a market correction.