Bitcoin Experiences Worst Monthly Performance Since November 2022 Amidst Volatile Cryptomarket
Summary:
Bitcoin (BTC) saw a decline of about 12% in April, marking its worst monthly performance since November 2022 according to CoinGlass. While BTC's price fluctuates, leading to net outflows from the Bitcoin spot exchange-traded funds for three consecutive days from April 24, some altcoins are anticipated to perform better. The S&P 500 Index has been trading below the moving averages, indicating a potential rise or drop depending on its direction in the future. The U.S. Dollar Index (DXY) has been gradually ascending, however, a recent drop suggests an upcoming bear market. Some other cryptocurrencies like Ether, Solana, Ripple, and Cardano have also witnessed significant downturns.
In April, Bitcoin (BTC) saw a drop of around 12% resulting in its worst monthly performance since November 2022, says CoinGlass data. Bitcoin may continue to struggle in May as this month has witnessed a closing decline for the past three years. The varying state of Bitcoin's price has led to consistent net outflows from Bitcoin on-spot exchange-traded funds for three consecutive days from April 24, marks data from Farside Investors. This indicates that traders are proceeding with caution and waiting for Bitcoin's resurgence before making further investments.
Select altcoins could soon see better performance even as Bitcoin continues to search for direction. Crypto analytics platform Santiment reports that the Ethereum network's gas fees fell to their lowest in the last six months indicating less pressure on the network and reduced demand, potentially indicating a market bottom, which could result in an unexpected turnaround for Ether (ETH) and its related altcoins.
The S&P 500 Index has been under the moving averages for few days now, however, bears couldn’t capitalize. Instead, the index has reached the moving averages; if it surpasses them, a rally to 5,200 and then 5,265 is very likely. On the other hand, if it sharply falls from the moving averages, it implies that the bear is trying to regain control. This could take the index down to 4,990 and then 4,953 and even down to the Fibonacci retracement level of 4,821, if the support breaks.
The U.S. Dollar Index (DXY) has been climbing within an ascending channel for the past few days. However, it fell to the 20-day exponential moving average ($105) on April 26, following a drop from the channel’s resistance line on April 17. If the 20-day EMA fails, it would signal a shift towards a short-term bear market.
Bitcoin has been gradually moving towards the key support level at $59,600. If it turns upwards sharply from $59,600, it would indicate that the bulls are not governing without resistance. If this happens, the BTC/USDT pair could climb up to the 20-day EMA ($64,897) and later, the 50-day SMA ($67,091). A break above this level would pave the way for a retest of $73,777.
Ether surpassed the 20-day EMA ($3,214) on April 27, but was unable to break through the 50-day SMA ($3,397). This indicates that bears are exploiting every possible minor relief rally. In contrast, if it breaks below $3,056, it indicates that bears are in control and the pair may plunge to the crucial support at $2,850.
Solana continued to degrade and is set for a dip to the vital support at $126. Conversely, if the price crosses the 20-day EMA, it indicates that the pair may stay within the range of $126 to $162. The next directional move may depend on a break above $162 or below $126.
Meanwhile, Ripple (XRP) fell below the trend line on April 27, signalling that bears are getting the upper hand, with the pair likely to descend to the strong support zone between $0.46 and $0.41.
Finally, Cardano (ADA) fell below the critical support of $0.46, indicating that bears are maintaining the pressure. However, if the price rises and breaks above $0.52, it could potentially push the price to the 50-day SMA ($0.58), where bears may mount a robust challenge.
Published At
4/29/2024 8:46:24 PM
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