Crypto is having a sad day and is fighting a waning piece of wind. The total market capitalization of cryptocurrencies is rising $2.33 trillionoff 4.81% in the past day, according to CoinGecko. Meanwhile, April is now the first month since January in which the Crypto Fear and Greed Index has returned to neutral territory, canceling out the overall greedy mood of 2024.
Tuesday trends are overwhelmingly bearish, with every coin in the top 100 showing negative performance over the past 24 hours.
Unus Sed LEO (LEO), is down 0.19% and is still the best performing token of the Top 100, with a current price of $5.84, followed by Cronos (CRO) which is down 0.05% at $0.1296%. In general terms, all the 100 most valuable cryptocurrencies by market capitalization are currently registering losses, with SEI (57th in the top 100) performing the worst, down 12.95% in the last 24 hours.
Bitcoin, the crypto market’s bellwether, is also down, falling to $60,000 today, with more than $300 million dragged in liquidations. The coin is changing hands at around $60200 for a loss of -4.19% in the last 24 hours and -9.72% in the last 7 days.
In technical analysis terms, the coin’s compression period, which started on April 9, 2024, was broken, and the failure to breach the $71.5K resistance point led to a series of lower highs, culminating in today’s bearish move.
Image: Tradingview
Meanwhile, the EMA 10 and the EMA 55 for Bitcoin are touching, indicating the beginning of a death cross, in which the EMA55 turns higher than the EMA 10. This indicates that traders will need to hold the asset longer to become profitable. So the bearish forecast is still in play, with possible support near $60,000 – its current price (white line) before testing new lows at around $52K (yellow line). The most immediate bullish scenario would simply cancel out today’s losses without showing much strength in the short term.
Ethereum, the second largest cryptocurrency, is mirroring Bitcoin’s downtrend, with today’s strongest red candlestick since April 13. The coin went from $3,164 to its current price of $2,966, down 6.26% in the last 24 hours and 8.18% in the last 7 days. The indicators for Ethereum are also bearish in a compression zone in the short term.
Image: Tradingview
The indicators for Ethereum point to a bearish short-term outlook, with a possible bounce in longer time frames. The death crossing occurred two weeks ago, and the coin is currently in a zone of high trading volume. The Average Directional Index (ADX) shows that the bearish correction is losing strength, indicating a potential “squeeze” or switch from a strong bearish trend to a short bullish bounce.
The current bearish trend, if maintained, could see ETH break its current support and take the coin somewhere near $2,500, which is a strong support in the daily and weekly time frames. If a bullish bounce occurs, the coin could recover to $3,260 and still remain in the compression zone.
It’s not just crypto
The crypto market is largely responding to global trends, with most international markets also down today, attributed to a combination of factors such as concerns about the US Federal Reserve’s next interest rate decision, uncertainty around corporate earnings and anticipation of significant macroeconomic events.
“The latest selling pressure in the US financial market shows adjusted expectations about a possible number of rate cuts until the end of the year,” Ruslan Lienkha, head of markets at YouHodler, said in statements shared with Decrypt. “In any case, the unchanged rate will not directly affect the crypto market, but Powell’s rhetoric may continue to spread a risk-off signal around markets that could intensify selling pressure in the crypto market.”
Image: Finviz
Investors are closely watching the Federal Reserve’s stance on rates, with the central bank’s two-day monetary policy meeting underway with a decision and press conference scheduled for tomorrow.
Image: Tradingview
Further ahead, updated inflation statistics and the next US jobs report will be key factors influencing market sentiment, with nearly 200 companies in the S&P 500 due to report their results this week. April is the only bearish month for the S&P500 since October 2023.
The Fear and Greed index for stock markets entered the fear phase for the first time since October 2023. This also affects the crypto market – especially now that Bitcoin is part of more trading portfolios after the approval of spot ETFs.
Edited by Ryan Ozawa.
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
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