Most crypto assets traded lower this Friday after UK March CPI data came in higher than expected. Bitcoin (BTC) fell 3.64% to $29,020, while Ethereum (ETH) declined 5.60% and traded below $2,000. Bitcoin fell in the last 24 hours after the launch of U.K Inflation numbers showing a 10.1% increase over the 12-month period. This sent BTC to its lowest level since April 10th. This can be expected in such circumstances. It may take time for investors and traders to assess the potential impact of the inflation data and recover from the event. Other major crypto tokens also traded lower. The global crypto market cap traded lower by around $1.22 trillion, down 3.92% in the last 24 hours.
Bitcoin rebounded from fresh 10-day lows at Wall Street’s April 20 open as US jobs data boosted investor sentiment. BTC/USD declined after hitting $28,360. However, amid an ongoing correction, the pair failed to rally $29,000 as support as US unemployment data suggested tighter financial conditions were helping inflation cool down.
Spot gold became the main beneficiary of risky assets and rallied back above $2,000 during the day. BTC is currently trading below $29,000 and its 20-day EMA. If it doesn’t get back soon, there could be a period of consolidation and volatility in the markets. These declines can be an opportunity for long-term holders to strengthen their positions. The asset has been witnessing volatile moves in the past three days. The pick-up in volatility shows that the buyers and sellers are vying for supremacy. Bitcoin is witnessing an uphill battle between bulls and bears at the 20-day exponential moving average ($29,092). The bears are trying to sink the price below the 20-day EMA while the bulls are trying to start a strong bounce.
Similar concerns exist for Ether, which broke through $2100 after the Shapella upgrade and hit an 11-month high followed by a 7-day low of $1972 on April 19th, despite staked deposits from ETH surpassing the previous day’s payouts. The bulls attempted to continue Ether’s uptrend on April 18, but the bears remained sellers near the overhead resistance at $2,200. The ETH/USDT pair has pulled back to the 20-day EMA ($1,949), which is just below the psychological support at $2,000. This is key support for the bulls to defend as a breakout and a close above it can tip the advantage in the sellers’ favour. The pair may first crash to $1,800 and then $1,700. During the hearing, Gensler declined to definitively answer whether Ethereum is a commodity or a security, despite repeated requests from committee members.
On the macro front, SEC Chairman Gary Gensler appeared before the United States House Committee on Financial Services for an oversight hearing, likely instilling fear in crypto traders. Despite fears of a banking crisis and hopes of a muted turnaround, Federal Reserve Chair Jerome Powell appears determined to lower inflation through further hikes. Powell and the Fed continue to reiterate the target of bringing inflation down to 2%. The market seems to be in agreement that interest rates will continue to rise with the next Federal Open Market Committee (FOMC) meeting scheduled for May 3rd, 2023. This will be an important date for crypto investors as the sector is still highly correlated with the Dow and the S&P 500. Meanwhile, the Federal Reserve is struggling with its own headwinds, as major banks still expect the US to experience a sharp recession sometime in 2023 that will likely push down the prices of risky assets, including crypto assets. According to Banking Analysis, Investor Sentiment on Current Economy Remains Low and in a Downtrend.
Technical Outlook
Bitcoin:
BITCOIN after consolidating near the low of $15,476 gave a breakout on the upside and started trading in an uptrend. The asset faced stiff resistance at $25k and $28,500 but the bulls managed to push the prices above the key levels and the prices made a high of $31,000. Post this move, BTC on a daily time frame has made an ‘Evening Star’ (Bearish Pattern) and has started moving down by making a ‘Lower High Lower Low’ formation. The asset has support at $27,500 (200-Day Moving Average). If it breaks this then we can expect the prices to drop and test the next support level which is at $25,000.
ETH:
ETH witnessed a sharp rally and surged almost by 56% from the recent bottom of $1,370 to the high of $2,146.5. Post this move, the asset started to consolidate and was trading in a range from $2,125 to $2,055. ETH gave a range breakout on the downside and has seen some correction and the prices have dropped to $1,900. The asset has strong support at $1,855 (Previous highs of the range and 50-Day Moving Average). If it holds and sustains the support then we can expect the bulls to resume the up move whereas a break below the support will lead to further downfall.
BNB:
BNB after making a high of $350 made a ‘Tweezer Top’ Candle.
Weekly Snapshot
| USD ($) | 13 Apr 23 | 20 Apr 23 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $30,399 | $28,246 | -7.08% | $30,874 | $27,794 | $30,602 | $27,856 |
| ETH | $2,013 | $1,943 | -3.45% | $2,126 | $1,829 | $2,137 | $1,906 |
| BNB | $324.95 | $317.89 | -2.17% | $334.27 | $309.88 | $350.07 | $315.90 |
| crypto | 1w – % Vol. Change (Global) |
| BitCoin (BTC) | 21.09% |
| Ethereum (ETH) | 25.72% |
| Binance Coin (BNB) | 35.91% |
| Resistance 2 | $37,500 | $2,450 | $1.50 | $365 |
|---|---|---|---|---|
| Resistance 1 | $32,500 | $2,250 | $1.30 | $336 |
| USD | BTC | ETH | Matic | BNB |
| Support 1 | $27,500 | $1,850 | $1.05 | $300 |
| Support 2 | $25,000 | $1,700 | $0.75 | $255 |
Market Updates
- Ethereum Name Service has integrated fiat payment options for decentralised domain registrations in a new partnership with MoonPay.
- Ethereum network’s gas fee skyrocketed to a new multi-month high amid a growing meme coin frenzy. The high transaction fee has swelled Ethereum’s daily revenue multifold compared to Bitcoin
- United States-based crypto exchange Gemini announced the establishment of a new engineering hub in India with plans to tap into the country’s pool of top tech talent.
- Societe Generale-Forge (SG-Forge), a regulated subsidiary of the French banking firm Societe Generale, has launched EUR CoinVertible, the euro-pegged stablecoin for qualified institutional clients.
