Bitcoin
Bitcoin decreased in price by 2.74% from March 29 to April 5, 2024. If at the beginning of the week the first cryptocurrency was still trying to stay above $71,500, then in the second half BTC dropped to $64,500, which was the minimum over the past ten days.
Source: tradingview.com
The situation was marked by the minimum supply of the largest cryptocurrency on exchanges in three years. Analytical platform
CryptoQuant recorded an outflow of 90,700 BTC over the past month.
Banks began to directly contact Bitcoin miners. By
opinion CEO of the mining company HUT 8 Asher Genoot, this practice will become commonplace in the near future.
Another analytical platform, Glassnode, presented a weekly
report, according to which an interesting trend has been noticed: the discrepancy between the supply of long-term and short-term investors is decreasing. This is explained by the increase in the price of BTC in mid-March-late April, which
pushed large players to partially take profits.
From a technical analysis perspective, Bitcoin is in a wide range between the $73,794 resistance level and the $60,760 support level. The overall trend remains bullish as the price is above the 50-day moving average (in blue) and the RSI indicator is above 50.
Source: tradingview.com
Index
fear and greed has not changed compared to last week. Its value is 79. This still indicates extreme greed among Bitcoin investors.
Ethereum
Ether dropped by 7.5% over the past week. The largest drop occurred in one trading session, on Tuesday, when ETH immediately fell by 6.46%. The second largest cryptocurrency by capitalization failed to stay above $3,600. ETH is currently trading around $3,250.
Source: tradingview.com
Despite the decline in the value of the coin, Ethereum is doing quite well. Last week there was published a report from analytics company Coin98, according to which a number of ETH metrics increased significantly in the first quarter of 2024. For example, income solely from commissions increased to $1.17 billion. This is an increase of 155%.
exceeds 2023 figure for the same period. The number of daily active users on the network increased to 404,000, as well as the daily transaction rate to 1.18 million.
Some movement has finally begun regarding spot Ether ETFs. US Securities and Exchange Commission (SEC)
announced about a three-week period during which it will respond to applications from Fidelity, Bitwise and Grayscale Investments.
From the point of view of technical analysis, the correction continues for ether. For the second largest cryptocurrency by capitalization, it will be important to stay above the support level of $3,059. The dominance of bears is indicated by the fact that the price has fallen below the 50-day moving average (indicated in blue). In addition, the RSI indicator is decreasing: it is already below 50. A change in trend can be expected after overcoming the resistance level of $3,679.8.
Source: tradingview.com
Bitcoin Cash
Unlike Bitcoin and Ethereum, Bitcoin Cash is growing in price. The growth for the week was slightly less than 10%. On April 1, the BCH rate exceeded $700 for the first time since November 2021. Despite the increase in cost, the number of negative sessions turned out to be more than positive ones: four versus three.
Source: tradingview.com
The main event of the week for Bitcoin Cash is the second halving in the history of this cryptocurrency. Now the reward to miners for mining a block is 3.125 BCH. The first occurred on April 8, 2020. Then the reward was reduced from 12.5 BCH to 6.25 BCH. By and large, it was after the halving that Bitcoin Cash began to grow again. From April 1 to April 3, the rate decreased at some point even by 19.5%.
It’s worth noting: this week the Bitcoin Cash team announced an upcoming update in mid-May. The Bitcoin fork upgrade will be based on the concept of an adaptive block size limit. It is expected that there will be an algorithm whereby the BCH block size will be set based on the average size of the latest blocks. Main goals
declared minimizing exposure to spam attacks and reducing transaction costs.
From a technical analysis perspective, Bitcoin Cash remains in an uptrend. This is confirmed by indicators: the price is above the 50-day moving average (marked in blue), RSI is above 50. Support and resistance levels: $562.8 and $718.87, respectively.
Source: tradingview.com
Conclusion
Overall: cryptocurrencies show, so to speak, multidirectional dynamics. Bitcoin and ether have decreased in price, and, for example, the Bitcoin Cash coin has grown. The success of the latter is explained by the halving, which took place on April 4, 2024.
This material and the information contained herein do not constitute individual or other investment advice. The editors' opinions may not coincide with the opinions of the author, analytical portals and experts.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
