Bitcoin and Ether Market Update May 5, 2022
The total crypto market cap added $70 billion to its valuation for the period since Monday and now stands at $1.79 trillion. The top ten coins were all in green for the last 24 hours with Cardano (ADA) and Solana (SOL) being the biggest gainers with 6.3 and 4.7 percent increase respectively. At the time of writing bitcoin (BTC) is trading at $39,540. Ether (ETH) is at $2,930.
Bitcoin finished the month of April with a 17.5 percent loss, breaking below the $42,000 support and the 21-period EMA. Looking at the monthly timeframe chart we could clearly see a continuing downtrend, with decreasing volumes while the Relative Strength Indicator remained close to its mid-point.
On Sunday, May 1, BTC bounced back up from its $37,400 low to close the last day of the week with a 2.5 percent increase. Bulls were able to keep the price floating above the lower end of the long-term uptrend corridor, thus avoiding further selloff.
The new seven-day period started with a solid push to $39,200 in the early hours of trading but the biggest cryptocurrency was rejected at the newly formed short-term diagonal and closed the Monday session flat.
On Tuesday, bears re-tested again the $37,500 low, which resulted in a 2.2 percent loss for the day as the trading volumes on a 24-hour basis were starting to pick up phase and were larger than the average for the last few weeks.
The mid-week trading on Wednesday came with a sudden increase in the price of BTC. It climbed all the way up to $39,640, closing right at the 21-day EMA while adding 5.3 percent to its valuation. The rally was most probably caused by the comments made by the US Federal Reserve (FED) chairman Jay Powell that an interest rate hike of more than 0.50 percent per meeting is not planned for the moment, which was considered by many to be slightly more dovish comment than expected.
What we are seeing midday on Thursday is BTC trading at $39,540.
The Ethereum Project token ETH also ended the month of April with a huge loss. It erased 16.7 percent from its market cap and lost both the weekly support line around $3,000 and the long-term uptrend corridor.
However, bulls were able to bounce back up from the monthly support zone on May 1 and compensated for all losses registered during the previous session by climbing up to $2,823 or 3.5 percent higher.
The Monday session was no different and the biggest and most popular altcoin continued to move in the upward direction. It closed the daily candle at $2,854.
The ether was one of the top picks for investors mainly because of the upcoming merge that will see the Ethereum blockchain migrate to a Proof of Stake consensus. As per the on-chain data, whales started to accumulate close to the January and March lows.
On Tuesday, the ETH/USDT pair corrected its price down to $2,780, but keep trading above the lower end of the mid-term uptrend corridor (in a bear flag formation).
The third day of the workweek came with a surprising 5.8 percent jump and a close near the 21-day EMA at $2,938.
As of the time of writing the coin is trading slightly lower.