The cryptocurrency market is facing difficulties as April begins, reflecting struggles from the historical data of the first quarter. Despite Bitcoin reaching an all-time high recently and altcoins trying to maintain crucial support levels, the overall market is experiencing a downturn. Concerns are rising ahead of Bitcoin's halving event scheduled for April 20, raising questions about what to anticipate for both Bitcoin and Ethereum.
Bitcoin’s Decrease in Value
During the 14th week of the year, Bitcoin saw an 8.33 percent decline due to bearish market forces. Trading volumes significantly increased from $42.2 billion in February to $111 billion, according to Bloomberg’s ETF analyst, Eric Balchunas. Analysts like Rekt Capital are warning investors about potential sell-offs following historical trends of BTC halvings. A key event was Bitcoin's inability to surpass the $71,700 mark, resulting in a drop below the 20-day exponential moving average price of $67,646 on April 2.
Ethereum Following Bitcoin’s Downward Trend
Ethereum has been following Bitcoin's decline, falling below its 50-day Simple Moving Average (SMA) of $3,414 on April 2. Uncertainty related to the approval of an Ethereum ETF and the SEC's actions has worsened ETH's decline. With the 20-day EMA trending downward and the Relative Strength Index (RSI) nearing oversold territory, Ethereum faces the risk of dropping to $2,700 unless it quickly bounces back above specific thresholds.
Key Points to Note
- Bitcoin halving could lead to more significant price drops based on past trends.
- It is crucial for Bitcoin to recover to prevent further declines to support levels of $59,000 or even $54,298.
- Ethereum's potential recovery relies on maintaining prices above its 50-day SMA, targeting $3,679 and potentially $4,000.
Investors and observers are closely monitoring these developments with the expectation that Bitcoin might reach $80,000 in the medium term while Ethereum aims to recover lost ground. The current market environment is marked by caution and anticipation as major cryptocurrencies navigate the challenging start of April.
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