The Crypto sector experienced a notable setback with the BlackRock Bitcoin spot exchange-traded fund (ETF) recording its first-ever net outflows on May 1. This development is especially concerning given that total spot Bitcoin ETFs saw a net outflow of $1.2 billion over six trading days starting from April 24. The apparent lack of interest from institutional investors is particularly troubling, especially as the U.S. Securities and Exchange Commission (SEC) deadline to decide on spot Ethereum ETFs approaches. Final decisions on the VanEck Ethereum ETF requests are expected by May 23rd.
BTC is encountering significant resistance, preventing its price from rebounding above $60,000. Despite a 6.2% recovery from this week’s lows, BTC/USD has struggled to breach key trendlines. With Bitcoin experiencing a 23% pullback from all-time highs in April and May, the likelihood of a return to price discovery remains limited. However, BTC price recovered on May 2 following the United States Federal Reserve’s decision to maintain unchanged interest rates, dampening investors’ expectations for rate cuts in 2024.
The crypto market shows signs of a bullish reversal following a challenging start on Monday, marked by significant losses as major altcoins face downward pressure. Ethereum (ETH), the cornerstone of the leading smart contracts ecosystem, dipped to test the $3,200 support level, contributing to the overall bearish sentiment in the crypto space. However, with the current Ethereum price hovering around $3,379, there’s a gradual shift in momentum towards the upside, with potential aims at surpassing the $4,000 mark. Despite the volatility witnessed by Ethereum, the decentralized finance (DeFi) sector within the ecosystem has remained relatively resilient. While there was a minor retreat from the yearly high of approximately $58 billion, with figures easing to $47 billion, this adjustment suggests a positive sentiment prevailing in the market.
In the macro set-up, Gold retraced slightly after reaching new all-time highs surpassing the $2,300 mark. The preceding day, Federal Reserve Chair Jerome Powell adopted a dovish stance on economic policy, hinting at potential interest rate cuts—a significant catalyst for risk assets—anticipated before the conclusion of 2024. Powell’s remarks alluded to forthcoming Federal Open Market Committee (FOMC) meetings, with the next session scheduled for May. Additionally, the latest initial U.S. jobless claims figures slightly exceeded expectations, registering at 221,000 compared to the anticipated 214,000, further influencing market dynamics.
Technical Outlook:
BITCOIN:
BITCOIN after giving a range breakout above $30k witnessed a sharp rally and the prices surged almost by 145% making the new all-time high of $73,777. However, the asset struggled to sustain above the $70k mark and it saw some profit booking at higher levels. Bitcoin is trading in red for the fifth consecutive week and the prices made a weekly low of $56,552. The asset has strong support at $56,000 and $52,000. If it holds and sustains above the support level then we may expect the bulls to resume the up move.
ETH:
ETH after breaking the key resistance of $2,145 witnessed a sharp rally and the prices surged almost by 90% and made the high of $4,093. The bulls however failed to manage the grip on the asset as it failed to sustain above the $4k mark. ETH saw a sharp correction as the prices fell almost by 31% making the low of $2,817. ETH has broken the psychological level of $3,000 but it has not given a weekly closing below this and the lower longer shadow around $2,850 indicates buying at lower levels. If it holds and sustains above the support then we may expect the bulls to resume the up move.
BNB:
BNB after giving a breakout above $300 started moving up by making a ‘Higher High Higher Low’ pattern and surged up to $645. Post this move, the asset is consolidating and trading in a range from $515 to 600 with declining volume. Breakouts on either side of the range with good volumes will further decide the trend for the asset.
| Mar | Apr | Last Month | Current Month | ||||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $71,333 | $60,636 | -15.00% | $73,750 | $59,324 | $72,715 | $59,120 |
| ETH | $3,648 | $3,012 | -17.42% | $4,092 | $3,059 | $3,727 | $2,862 |
| BNB | $606.91 | $578.49 | -4.68% | $641.48 | $363.22 | $626.98 | $514.11 |
| Crypto | 1m – % Vol. Change (Global) |
| BitCoin (BTC) | -28.77% |
| Ethereum (ETH) | -26.41% |
| Binance Coin (BNB) | -52.94% |
| Resistance 2 | $67,000 | $3,700 | $1.15 | $645 |
|---|---|---|---|---|
| Resistance 1 | $60,000 | $3,300 | $0.95 | $600 |
| USD | BTC | ETH | Matic | BNB |
| Support 1 | $56,000 | $3,000 | $0.75 | $550 |
| Support 2 | $52,000 | $2,800 | $0.5 | $500 |
Market Updates
- Crypto exchange Binance has integrated Bitcoin ARC-20 atomical assets into its native Web3 wallet through its Inscriptions Marketplace.
- Ethereum re-staking protocol EigenLayer is airdropping around 28 million more of its native EIGEN tokens to over 280,000 wallets — just days after its first airdrop announcement.
- Crypto infrastructure firm MoonPay continues expanding the options to buy and sell crypto by integrating PayPal transactions.
