Bitcoin and Ether Market Update April 14, 2022
The total crypto market cap erased $2 billion from its value for the period since Monday and now stands at $1.9 trillion. The top ten coins were mostly in green for the last 24 hours with Avalanche (AVAX) and Terra (LUNA) adding 3.8 and 2.5 percent to their values respectively. At the time of writing bitcoin (BTC) is trading at $41,170. Ether (ETH) is at $3,093.
Bitcoin closed the trading day on Sunday, April 10 at $42,237 after losing the 21-day EMA on both the daily and weekly timeframes earlier in the week. This resulted in a 9 percent correction for the biggest cryptocurrency in the last seven-day period.
The reversal to the upside was short-lived, but the price of BTC kept trading inside the bear flag formation without being able to break it in either direction.
On Monday, the coin fell sharply to $39,500 erasing 6.2 percent while touching the lower boundary of the mentioned bear flat figure. It was also dangerously close to the lower side of the long-term uptrend corridor, situated at $38,600. The RSI indicator went back into the oversold area stimulating bulls to come back to the trading battlefield.
The BTC/USDT pair bounced back up from the diagonal support and on Tuesday, April 12 reached $40,100 but not before hitting $40,800 during the intraday session.
The mid-week session on Wednesday came with a second consecutive green candle on the 1-Day chart as BTC climbed up to $41,100.
What we are seeing midday on Thursday is a continuation of the upward movement, but it is quite possible we see a bear trap and a sudden reversal once we touch the area above the 21-day EMA.
The Ethereum Project token ETH also hit resistance around the 200 MA in early April and fell down to $3,192 on Sunday, April 10. The coin formed a small bear flag on the lower timeframes, which suggested more downside could be expected. It also ended the previous seven-day period with a 9.4 percent loss but somehow managed to keep floating above the 21-period EMA on the weekly timeframe.
On Monday, the ETH/USDT pair dropped to $2,977, or right below the horizontal support, and erased 7 percent of its market capitalization. Just like bitcoin, the ether was now trading in a wide uptrend corridor with a low boundary somewhere near the $2700-$2,800 monthly horizontal support. It managed to stabilize its price around the mid-zone ($3,000).
The Tuesday session was more positive for bulls as they were able to form a green candle to $3,043 and avoid further decreases.
The move was followed by a continuation of the reversal as ETH reached $3,122 on the third day of the workweek.
The RSI indicator was nowhere near the oversold or overbought areas, but the lack of overall buying momentum could suggest more downside once the leading altcoin re-visits the $3,300 mark, depending on how BTC reacts around its resistance levels.
As of the time of writing, the price is hovering around $3,100.