This week has been another exciting week for the cryptocurrency industry, even as we march closer to the bitcoin halving event. If you look at the charts and total market capitalisation of the cryptocurrency market, you would see that the sector is showing strong resilience even in the face of a global financial crisis that is looming.
At the beginning of the week, the total market capitalisation stood at $207billion, with bitcoin trading around the $7100 region in most exchanges. Today, the market capitalisation has increased by about $10billion, to $217billion. Bitcoins and altcoins have been on bullish behaviour for the past three days.
Another notable event that could be responsible for the bullish trend in bitcoin is the upcoming halving event slated for May. According to google trends, the search for bitcoin halving is so high, that it has exceeded bitcoin's all-time high search results on google trends.
In another study, it appears a lot of people are losing faith in the traditional finance system. According to a survey conducted by Paxful, half of the respondents believe that bitcoin's adoption will increase as the inadequacies of the present financial system become apparent. They also stated that significant and mainstream adoption would happen within the next 6 to 10 years, while the rest of the respondents believe that there won't be any shift in baseline currency. They also stated that the crypto market is a bubble waiting to burst.
Is there a precedent for us to believe the position of the first group? Let us consider the situation of Argentina. The government of Argentina is having discussions with some of its creditors so that they can prevent another sovereign debt default from happening. Guess what happened next? The Argentines responded, with a recorded increase by 1020% of crypto bought using the Argentine peso.
BTC/USD
Although BTC moved over the resistance at $7,454.17 on April 23, which is a significant sign of a bullish trend, the bulls have not had the option to exploit this breakout.
This behaviour shows that investors are still looking for the opportunity to buy the dips, but are more hesitant to buy as price increases. Therefore, the bears may attempt to drag prices down below the $7,454.17 level. If this happens, a retest of the breakout level from the symmetrical triangle at $7,220 is likely.
However, If the BTC/USD pair rebounds off this level, the bulls will try to push the price above the 7,454.17 overhead resistance, to the $8000 level. From there, a move to $9000 is possible.
If there is a break in the 20day EMA below the $6,471.71, a bearish trend could result. Therefore, traders on long positions can maintain their stop loss at $6200.
ETH/USD
Ether (ETH) has been trading inside the ascending channel with a positive predisposition. The 20-day EMA ($169) is slanting up, and the RSI is in the positive domain, which demonstrates that the bulls have the higher ground.
If the bulls can move the ETH/USD pair over the ascending channel, there will be enough force to move over to the next level. Over the channel, a meeting to $250 is conceivable. The pair stays bullish as long as it exchanges inside the top portion of the channel.
The primary indication of shortcoming will be a break beneath the 20-day EMA, and the pattern will turn for the bears on a break underneath the channel. Along these lines, the stop-loss on the long positions can be maintained at $155.
Note: This analysis is culled from an original article by Cointelegraph
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