Bitcoin has had a great first quarter of the year, in which it increased its valuation by more than 70%. In doing so, it beat the returns of almost all conventional investment assets. Cryptocurrencies have entered a new quarter that may bring strategic repositioning. Bulls are struggling today to maintain upward momentum and are trying to keep the price of Bitcoin near $28,000;
- As concerns around the banking crisis ease and there is less demand for a 'pricey Bitcoin', a correction is not out of the question. Industry regulation may again take center stage. Analysts at FRNT Financial indicate that the ultimate impact of the CFTC's lawsuit against Binance is still unresolved;
- This week, the crypto market's attention will mainly focus on Friday's NFP data from the US labor market and Wednesday's Ethereum update. The crypto market is a global market but we can expect liquidity to weaken during the holiday week by which the range of price movements may be greater in case of sudden news.
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Open real account TRY DEMO Download mobile app Download mobile appTrading volumes in the derivatives market (yellow waves), based on digital asset prices, significantly exceed spot volumes (black waves).Spot volumes of the crypto market in Q1 2023 increased significantly relative to Q4 2022. But the spot volume decline last week may be a signal for a potentially weakening demand. At the same time, liquidity is relatively low, which could mean lower institutional trading activity. Source: CryptoCompare
Typically, two months of a significant price rally for Bitcoin (green squares) ended in a correction (black candlesticks). Source: Bloomberg:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/T4UXDOFJP5FNJJLPTE3KUHXXTQ.jpeg)
With a few exceptions, April was a statistically successful month for both BTC (up 17% on average over the past 10 years) and the S&P500. Matrixport analysts expect the increases to continue at the start of the new quarter. Source: Matrixport
News
- Ethereum Shapella upgrade is set on Wednesday. After it, withdrawals from the Beacon chain will be enabled. 'Upgrade' is also expected to improve network bandwidth and speed up transaction processing;
- Hong Kong is becoming increasingly bold in the industry. One Hong Kong investor aims to raise and invest $100 million by the end of this year;
- VanEck fund manager Jan VanEck stressed in an interview with CNBC that he believes Bitcoin is in for a successful few years. In mid-March, VanEck's proposal to create an ETF on the BTC spot price was rejected by the SEC.
Ethereum, D1 interval. For the second largest cryptocurrency, psychological resistance remains at $2,000, the August 2022 level. So far, ETH has not been able to overcome the local peaks of last summer although the SMA100 and 200 averages show that the upward momentum can be maintained. In the event of a correction, support levels may be set by the 23.6 and 38, 2 Fibo retracement ($1,630 and $1,500 levels). Source: xStation5
Bitcoin, H4 interval. The bulls reacted quickly to the decline near the SMA100 (black line). However, the price has a clear problem to resume dynamic growth. The short-term support is at $26,900 set by the 28.6 Fibonacci retracement of the upward wave that began on March 10 and previous price reactions. Next, big resistance zone is $30,000 level. Source: xStation5
