Banks are falling - cryptocurrency is growing: market overview

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6 min.

Opinion

Another change of scenery in the cryptocurrency market. Bulls rule the ball again. But how long will it last? And why did the fall this time turn out to be so short?

Bitcoin

For the past seven days from 21 to 28 April, the pricebitcoin rose by more than 8%. This was the opposite of the previous week, when the value of BTC lost over 7.5%. At the same time, all growth was provided for the last four days. As early as Monday, April 24, the price of bitcoin fell below $27,000, but since Tuesday, the trend has changed.

Source: tradingview.com

What caused the growth of BTC?According to analysts at the investment company FxPro, the fall was purely technical in nature: investors were getting rid of the overheated asset. At some point, Bitcoin dropped to the values ​​of the 50-day moving average, but then it began to grow.

Strong BTC volatility was observed on April 26th.On that day, Arkham analysts reported on the movement of cryptocurrency from the wallets of the MtGox exchange and the US federal authorities. As a result, on some exchanges, bitcoin lost up to 7% at once. Later, however, the information was refuted, and BTC returned to about where it was.

Of course, it is worth noting the problems that arosefrom First Republic Bank. According to some reports, he is on the verge of bankruptcy. Stocks have fallen more than 55% in the past three days. And, as you know, banking problems have a rather positive effect on the value of cryptocurrencies, as an increase in distrust of traditional credit organizations makes investors look for a new safe haven.

The bitcoin situation can be described asmoderately bullish trend. To accurately identify the beginning of a new rally, the price needs to overcome the resistance level in the $31,000 region, the maximum value reached in 2023. The support level is in the region of $29,300 – $29,500.

Source: tradingview.com

The index of fear and greed after the position of neutrality last week began to grow again. The current value is 64. This is
testifies to the predominance of greed over fear.

Ethereum

Ethereum over the past week showed a smaller increase compared to BTC: about 3%. At the same time, relative calm was observed for all seven days: the price has never changed by more than 2.5% per day.

Source: tradingview.com

Although a number of experts believed that the updateShapella will lead to a sharp decline in the price of ether, this did not happen. The dynamics of withdrawing coins from staking is even reversed. More than 570,000 ETH staked after Shapella, analytics platform data says
dune. Its creator Tom Wan in his social networks
wrote that for the most part this is due to the activities of institutional players.

Source: dune.com/home

The figure shows that starting from April 12Ethereum staker activity has increased. Since the update, the five largest players have frozen more than 235,000 coins in staking, worth more than $450 million.

Source: dune.com/home

The amount of ether entering the exchange could not even exceed the figures for March. Fears that all crypto enthusiasts will rush to withdraw and sell ETH are not yet justified.

Source: cryptoquant.com/analytics/dashboard

Also on the 20th, it was announced thatdevconnect. The event is held for the second time. It is a series of events on various topics that will be dedicated to Ethereum. Devconnect is scheduled to take place in Istanbul on November 13-19, 2023. While the price of Ether was unlikely to be affected by the news, the holding of the event itself suggests that
high interest in Ethereum remains.

In terms of technical analysis, it's too earlytalk about a new bullish trend. The reason for it may be the price rise above the resistance level of $1,940-$1,960. The support level is $1,790.

Source: tradingview.com

Cardano

Cardano has risen in price by 5.5% in a week. The dynamics were similar to those of Bitcoin and Ethereum: the first half of the week was in the red zone, and the entire growth occurred in the period from March 26 to 28.

Source: tradingview.com

The main growth trigger for Cardano is the very fact of the development of the ecosystem. This is confirmed by the analytical platform Santiment. According to the platform, according to this
In terms of developer activity over the past month, Cardano is in third place, ahead of its main competitors: Ethereum and Avalanche.

In addition, recently the major playersbegan to show interest in the ADA token. Since mid-March, the number of large investors investing in Cardano has doubled, from 4% to 8%. It is worth noting that ADA does not have one or more majority holders as such, which indicates the maximum market pricing.

Source: tradingview.com

In terms of technical analysis, Cardano was able topinch a local bottom and rose slightly in price. To talk about further growth, it is necessary to overcome the resistance level of $0.42. The support level is $0.372.

Source: tradingview.com

So last week everythingcryptocurrencies showed growth against decline seven days earlier. The reasons for the growth were distrust in the US banking system and specific catalysts, which each coin had its own.

This material and the information in it does not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.