Last week, the crypto market experienced its worst week of trading after it rallied to all time high of $2.29 trillion market capitalization.
Thursday, 22nd April, the United State president Joe Biden administration was set consider raising tax on capital gains to 39.6% for those earning more than $1 million a year.
From a fundamental outlook, this ignited tension on the stock and crypto market as investors winded down their capital exposure for stable crypto asset such as USDT & QC. The bearish pressure on the crypto market caused bitcoin and altcoin to be in red sea.
The total market capitalization plunged to a low of $1.644 trillion. Bitcoin dominance plunged to 50.01% while altcoins were in red territory with 755 Billion total market capitalization as crypto whales liquidated their long position.
Bitcoin declined by 15.89% last week with over $8924 loss as the bears extended its pressure on the BTC price.
Bitcoin opened the weekly trading session at $56008.22. The bulls managed to push BTC price to a weekly high of $57495.68 but the buying pressure was weak as EMA crosses acted as a dynamic resistance to the start of the week.
The bears meandered BTC price on the lower band of the Bollinger band. BTC price tanked to $46731.56 support with a bearish pin bar on the daily chart. This dump was to retest the 100-day exponential moving average as dynamic support.
The RSI down sloped to 30 mark in the over-sold territory. This means probable reversal of bearish trend is near as the retail traders strategically positioned for buy opportunity.
In the week ahead, we could expect probable recovery to a high of $55685.72 at the beginning of the week as a retest of the horizontal resistance.
This key price level will define a start to bearish trend or bullish continuation if this scenario plays out.
From bullish perspective, the bulls with need to defend $48123.28 and thrust BTC price above $55685.72 for the uptrend to resume. Traders can take buy opportunity at this level for a probable profit target at $61669.48.
On the contrary, from a bearish perspective, if the bears defend $55685.72 to break below $48123.28 at the start to the week, BTC price will further extend it bearish momentum to low of $4439272.00 and tank to $38981.76.
Last week, it was a bearish start to the week for ETH due to previous week bearish pressure which caused ETH to further lower down to the EMA crosses at $2129.44. ETH made 100% recovery from its previous week losses of $391.
Price action at this level to propel ETH to a massive bull run to an all time high of $2580.51 after it broke the 20-period SMA with bullish engulfing candle.
As traders booked for profit due to recent resistance of $2540.83, ETH made a correction to retest $2164.17 support.
ETH closed the week bullish.
Technically, ETH created a double bottom market structure, RSI is at 60mark in positive zone. More so, the bulls broke the EMA crosses on the daily chart. All indicators pointed bullish for the pair.
In the week ahead, ETH price will revisit the $2540 resistance, if the bulls break this resistance, ETH will rally to anticipate 3k level. Traders can position their buy orders immediately after the break out of $2540 resistance.
Although from bearish perspective, if the bears defend a probable target of $2540.83 with low volume, the bears could dip ETH price to a low of $1956.06.
Ripple declined by 36.17% last week with over $0.51 loss to the bears following on previous week decline of 24.19% as the bear extend it pressure on the XRP price.
The SEC law suit against XRP was a set back as the regulatory agency asks court to dismiss Ripple’s ‘lack of due process and fair notice’ defense that the XRP token could be deemed a security.
The 20 day SMA acted as a dynamic resistance, as the bear pressure intensifies, XRP price broke the EMA crosses to dip to a weekly low of $0.8954.
At press time, the Bollinger band made an attempt to converge as the bears relax the selling pressure.
If 26th April trading session closes bearish, we could expect a recovery to a high of $1.41 of XRP.
In the week ahead, this will be a hurdle for the bulls to resume the uptrend, this key level could ignite a bearish trend if the XRP army fails to thrust price above $1.41.