Weekly Analysis of BTC, ETH, and Altcoin Markets, April 22, 2024
An overview of BTC, ETH, OP, TRX, LINK, LTC charts, and the current cryptocurrency market dynamics.
Bitcoin (BTC)
This past Saturday, the Bitcoin network experienced a halving, reducing the miner reward to 3.125 BTC per new block. Over the next four years, approximately 650,000 new coins will hit the market.
This event did not affect Bitcoin’s price, as it was already factored into the asset's value. Currently, BTC is trading near a resistance zone of $65,800 to $68,000. If buyers can assert their strength and establish support above this range, BTC may ascend and challenge the seller’s zone between $71,000 and $72,700.
However, the current trading volumes and buyer momentum do not seem strong enough to surpass the ATH (All Time High). BTC may continue to trade within a range, hovering between the support level of $60,700 and the current resistance. A potential decline to the $54,500–$57,000 range could occur if the market undergoes another correction.
BTC H3 Chart
Ethereum (ETH)
ETH is trading within a sideways channel between support at $2,810–$2,980 and resistance at $3,200–$3,300.
Ethereum's future movements will largely depend on Bitcoin’s performance. If the market favors buyers, Ethereum might continue its upward trend toward the $3,512 resistance. Discussing further potential seller zones at this point would be premature.
In the event of a Bitcoin correction, ETH could quickly revisit its local low in the support range of $2,480–$2,620.
ETH H3 Chart
Optimism (OP)
Since reaching its all-time high of $4.86, OP has corrected by 62%. Currently, the token is fluctuating within a sideways range between the support levels of $1.78 and $2.07 and the resistance levels of $2.75–$3.00. Given its history of setting new lows, Optimism is still facing pressure from sellers.
For buyers to reverse the negative trend, they need to sustainably break above the $2.75–$3.00 resistance zone and test the $3.41 mark.
Discussing a potential uptrend for OP is premature until these developments occur.
OP H2 Chart
Tron (TRX)
TRX is currently in a downtrend, with a key support range holding at $0.105 to $0.107, which is currently preventing further declines. If sellers continue to dominate, the coin could fall to the psychological support of $0.1.
To initiate an upward trend, Tron needs to break and hold above the resistance level of $0.126. This upward movement is likely contingent on the performance of BTC, due to the high correlation between TRX and the primary cryptocurrency.
TRX H4 Chart
Chainlink (LINK)
LINK's price is moving sideways, confined between the support range of $11.8 to $13.5 and the resistance zone of $16.20 to $17.75. Breaking through this resistance zone is critical for LINK to resume an upward trajectory.
If buyers cannot achieve this, Chainlink's next resistance target is $19.50. Given the volatility of BTC, further corrections are possible, potentially pushing LINK down toward a support level of $10.5.
LINK H4 Chart
Litecoin (LTC)
Despite positive movements over the past two months, a decline in BTC below $60,000 has negated the gains made by Litecoin buyers. LTC is now oscillating between the support zone of $70 to $77 and the resistance zone of $87.7 to $93.3.
A recovery in BTC's price is crucial for LTC to regain its upward momentum. Should this occur, Litecoin could test the resistance at $97.47 and approach the significant $100 level.
In a bearish scenario, LTC may face new lows.
LTC H4 Chart
BTC Dominance, Altcoin Season Index, and Fear and Greed Index
BTC currently commands a 55.09% dominance over other cryptocurrencies. Last week, this figure reached a two-year high of over 57% but has now somewhat stabilized. This level of dominance suggests that investors are heavily focused on Bitcoin and are allocating less attention and capital to altcoins, thus stifling their price growth and market capitalization.
BTC Dominance Index. Source: tradingview.com
The Altcoin Season Index is currently at 39 points, marking one of its lowest readings in the past six months. This low score indicates a significant transfer of liquidity from altcoins back to Bitcoin.
Altcoin Season Index. Source: blockchaincenter.net
Despite some prevailing negativity in the crypto market over the past two weeks, the Fear and Greed Index is still high at 73 points, categorized under "Greed." This implies that investors remain interested in incorporating cryptocurrencies into their investment portfolios.
Fear and Greed Index. Source: coinstats.app
Economic News
This week will feature the release of key macroeconomic indicators, including:
- The U.S. Manufacturing PMI and Services PMI, along with data on new home sales in the U.S. (Tuesday, April 23);
- U.S. crude oil inventories (Wednesday, April 24);
- U.S. GDP for the first quarter and initial unemployment claims (Thursday, April 25);
- The U.S. Core PCE Price Index (Friday, April 26).
Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the price movement between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K – $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GN Crypto:
