Crypto Market Analysis: Bitcoin Maintains Stand, Altcoins Show Strength Amidst Market Ups And Downs
Summary:
Despite a roughly 2% dip this week, Bitcoin continues to hold above its weekly low of $64,493, indicating the possibility of a subsequent halving. However, Coinbase warns of potential obstacles post-halving. As Bitcoin leads market growth, multiple altcoins are large outperformers. Toncoin, Stacks, Mantle, and Maker are some of the cryptocurrencies that seem strong on the charts. Bulls are struggling to maintain Maker above $4,000, leading to profit-booking. All potential movements carry risk and investors are advised to conduct their research.
Though Bitcoin (BTC) has seen a roughly 2% decrease this week, it continues to maintain a footing above its weekly low of $64,493. This situation is seen as a hopeful sign by bulls who are looking ahead to the next Bitcoin halving. Despite this optimism, Coinbase, the cryptocurrency exchange, has warned that Bitcoin’s pricing could encounter challenges as halving events are typically weak phases for crypto markets and other risky assets. The upside, they suggest, remains relatively limitless while the downside is not. In the event of a drop, Dylan LeClair, a senior analyst at UTXO Management, predicts that it is unlikely for Bitcoin to tumble to $50,000 and conflict with large clusters of longs. Nonetheless, he advises that nothing can be deemed impossible within the crypto market sphere.
Furthermore, numerous alternative coins have experienced considerable growth even as Bitcoin has led the way to market advancement. The Liquid Token Fund of Pantera Capital disclosed in a shareholder letter obtained by Bloomberg that it has decreased its exposure to Bitcoin and Ether, while increasing investment in DeFi tokens. This shift has contributed to the fund's 66% returns in Q1 of 2024.
Bitcoin's price pattern has resembled a symmetrical triangle, indicating uncertainty about the next price movement direction. However, the steady upward trajectory of the 20-day exponential moving average at $68,049 and the relative strength index (RSI) falling within the positive range show a slight benefit for the bulls. If Bitcoin remains above the triangle, it indicates the buyers' preference. The BTC/USDT pair could then climb to $73,777 and eventually to $80,000. On the other hand, if the price drops from the downtrend line and falls below the 20-day EMA, it will suggest an extended stay within the triangle, favoring the bears. This could lead to a declining trend to $59,000 and then to the 61.8% Fibonacci retracement level at $54,298.
Meanwhile, Toncoin (TON) has gradually moved towards the overhead resistance of $5.69, implying an attempt by the bulls to regain control. A potential future consolidation or correction is signaled by the positive 20-day EMA of $4.86 and the negative divergence on the RSI. A downward turn from this level or at $5.69 will suggest the bears are staunchly defending their overhead resistance, possibly dragging down the price to the 20-day EMA. However, if buyers overcome the $5.69 resistance, the TON/USDT pair might ascend in the next uptrend towards $7.09.
Stacks (STX) has also experienced correction, with the price hovering between the moving averages, indicating a tough battle between the presiding bulls and bears. A potential breakout to the overhead resistance of $3.84 is suggested if the price rises above $3.36. After this level, the STX/USDT pair could increase to $4.27 and later to $5. If the price dips and breaks below the 50-day SMA, it will suggest a victory for the bears and possibly trigger a deeper pullback to $2.50 and then to $2.20.
Mantle (MNT) has hit resistance at $1.50, but the bulls have succeeded in keeping the price above the 20-day EMA ($1.18). The bulls might attempt another retest of the overhead resistance at $1.50. If they break through this barrier, the MNT/USDT could start a rally towards $1.90. If the price drops from $1.50, it signifies that the bears are capitalizing on the rally, and the pair could descend to the 20-day EMA. A further drop below this support would indicate the onset of a more pronounced correction.
Lastly, the bulls are struggling to keep Maker (MKR) above the $4,000 level, initiating profit-booking. If the price rebounds from this level, it suggests that the sentiment remains buoyant, and traders are taking advantage of this to buy on dips. The pair could then retest the overhead resistance of $4,074. If this level is cleared, the pair might gain momentum and reach $5,280. If, however, the price breaks below the 20-day EMA, it suggests an exodus by the bulls. The pair might then plummet to the 50-day SMA at $2,794.
This article isn't intended as investment advice or recommendations. Every investment or trading move carries risk, and readers are urged to conduct their own research before making any decisions.
Published At
4/8/2024 4:35:13 AM
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