Bitcoin (BTC) fell back on April 21, largely due to its correlation with the US stock market, which was bolstered by announcements from the US Federal Reserve that there may be another rate hike. by 50 basis points from May. hit hard. This decline continued for the Bitcoin price yesterday, April 22, as investors preferred to abandon risky investment products given these macroeconomic circumstances.
Against this background, veteran trader Peter Bradnt warns that the Nasdaq 100 (NDX) is currently developing a price pattern similar to that before the big crash of 2000.
So if the sad story repeats itself, the US stock market could face an equally severe crash. This would then most likely also have a negative impact on Bitcoin and the crypto market as a whole, as the existing correlation is undeniable.
The weak cryptocurrency market situation and the poor macroeconomic framework also ensure that the search interest in Bitcoin and Ethereum is currently particularly low. This lack of investor interest is underscored by the fact that trading volumes have also been steadily declining lately. According to Blockchain.com, the current volume of major crypto exchanges is just $165.8 billion, the lowest since October 2020.
Will Bitcoin and altcoins continue to fall or will another recovery be imminent? Our price analysis has the answers.
BTC/USDT
Bitcoin price broke above the 50-day simple moving average (SMA) at $41,977 on April 21, however, the bulls failed to establish themselves in the higher areas, prompting it to drop to $42,976 before BTC settles below the 20-day exponential move. Average (EMA) at $41,478.
This selling pressure continued yesterday, April 22, as the bears now attempt to push the price down towards the ascending channel support. The decline of the 20-day EMA and the Relative Strength Index (RSI) into negative territory clearly shows that the bears are back in control.
If bitcoin price breaks below the descending channel support, the selling pressure could increase again, which could allow BTC/USDT to drop to $33,000.
However, if the price rallies, the bulls will resist in the low areas, hoping for further momentum.
However, they should push the price above $43,000 to bring renewed strength to the market. This would then allow a rise to the SMA 200 days at 47,965 US$, in the best case it even goes up to the resistance of the channel.
ETH/USDT
Ether (ETH) has been trapped between the 20-day EMA at $3,087 and the 50-day SMA at $3,003 for the past few days. Multiple attempts to break out of this price range have failed, suggesting that bulls are buying each falling leg while bears are selling each rising leg.
The falling 20-day EMA and an RSI in negative territory suggest that the advantage is marginal for the bears. If these can push the Ethereum price below $2,883, further decline from the ascending channel support is possible.
The bulls need to defend here now and if the price can bounce off the uptrend line, the bulls will also try to use this tailwind to push ETH/USDT above the 20-day EMA as well.
If successful, a climb towards the 200-day SMA at $3,486 would also be possible, a jump above this level would in turn complete the ascending triangle and indicate a new uptrend.
LUNA/USDT
Terra (LUNA) failed at the psychological level of $100 on April 21, on a positive note that the bulls did not let the price fall below the 20-day EMA at $91.
The bulls will now try again to push LUNA/USDT back above $100 and if successful, the updraft could push Terra further to all-time highs of $119. However, the bears will put up strong resistance here at the latest.
If the price declines from the current levels or around $100, another decline to $88 is on the cards. If the Terra remains below this mark, even a crash to just US$75 is possible. A close below the 200-day SMA at $68 would indicate that the trend has turned fully negative.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and transaction involves risk. Research well before making a decision.
Market data comes from the stock exchange HitBTC.
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