July 22, 2024

Banks are falling - cryptocurrency is growing: market overview

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Banks Are Falling, Cryptocurrency Is Rising: Market Overview

Opinion

There is another change of scenery in the cryptocurrency market.But how long will it last?Was it so short?

Bitcoin

Over the past seven days, from April 21 to April 28, the price of bitcoin has increased by more than 8%.This was the reverse of the previous week, when the value of BTC lost more than 7.5%.At the same time, all the growth was provided over the past four days.On Monday, April 24, the value of bitcoin fell below $27,000 , but starting from Tuesday, the trend changed.

Banks Are Falling, Cryptocurrency Is Rising: Market Overview

Source: tradingview.com

According to analysts of the investment company FxPro, the fall was purely technical in nature: investors got rid ofAt some point , bitcoin dropped to the values of the 50-day moving average, but then began to rise.

Strong BTC volatility was observed on April 26.On that day, analysts at Arkham 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 a time.Then, however, the information was refuted, and BTC returned approximately to where it was.

Of course, it is worth noting the problems that First Republic Bank has faced.According to some reports, it is on the verge of bankruptcy.Over the past three days, the stock has fallen by more than 55%.And, as you know, banking problems have a rather positive effect on the value of cryptocurrencies, since an increase in distrust in traditional credit institutions makesinvestors to look for a new safe haven.

To accurately identify the beginning of a new rally, it is necessary for the price to overcome the resistance level around $31,000 , the highest value reached in 2023.The support level is around $29,300 – $29,500  .

Banks Are Falling, Cryptocurrency Is Rising: Market Overview

Source: tradingview.com

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

Ethereum

Over the past week, Ethereum has shown a smaller growth compared to BTC: about 3%.At the same time, there was a relative lull for all seven days: not once did the price change by more than 2.5% during the day.

Banks Are Falling, Cryptocurrency Is Rising: Market Overview

Source: tradingview.com

Although a number of experts believed that the Shapella upgrade would lead to a sharp decline in the price of Ether, this did not happen.After Shapella, more than 570,000 ETH was staked, they sayAnalytics Platform Data
Its creator Tom Wan in his social networks . 
He wrote that most of this is due to the activities of institutional players.

Banks Are Falling, Cryptocurrency Is Rising: Market Overview

Source: dune.com/home

As you can see from the figure, the activity of Ethereum stakers has increased since April 12.Since the update, the top five players have staked more than 235,000 coins worth more than $450 million.

Banks Are Falling, Cryptocurrency Is Rising: Market Overview

Source: dune.com/home

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

Banks Are Falling, Cryptocurrency Is Rising: Market Overview

Source: cryptoquant.com/analytics/dashboard

Also on the 20th, Devconnect was announced.The event is held for the second time.It is a series of events on various topics, which will bededicated to Ethereum. Devconnect is scheduled to take place in Istanbul on November 13-19, 2023.Although the news is unlikely to have had an effect on the price of ether, the event itself speaks volumesAbout the fact that
high interest in Ethereum remains. 

From the point of view of technical analysis, it is too early to talk about a new bullish trend.The reason for it may be a rise in the price above the resistance level of $1,940-$1,960  .The support level is $1,790 .

Banks Are Falling, Cryptocurrency Is Rising: Market Overview

Source: tradingview.com

Cardano

Cardano rose in price by 5.5% over the week.The dynamics were similar to bitcoin and ether: the first half of the week passed in the red zone, and all the growthfell on the period from March 26 to March 28.

Banks Are Falling, Cryptocurrency Is Rising: Market Overview

Source: tradingview.com

The main trigger for Cardano's growth is the very fact of the development of the ecosystem.analytical platform Santiment.According to the platform, according to this
As a measure of developer activity over the past month, Cardano ranks third, ahead of its main competitors: Ethereum and Avalanche.

In addition, recently 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: as such, ADA does not have one or more majority holders, which indicates maximum market pricing.

Banks Are Falling, Cryptocurrency Is Rising: Market Overview

Source: tradingview.com

From a technical analysis perspective on Cardanowas able to hit the 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.

Banks Are Falling, Cryptocurrency Is Rising: Market Overview

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 that each coin had its own.

This material and the information in it are notindividual or other investment advice. The editors' opinions may not coincide with the opinions of the author, analytical portals and experts.