Bitcoin’s Downtrend Continues
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BTC 4-hour candle chart, 4/11/22
Bitcoin is continuing to ride this downtrend as it goes into Monday morning.
BTC was rejected yesterday when it attempted to test $43,500. It’s continuing down this downtrend, leading broader crypto markets downward as well. Unless substantial buy-side pressure is achieved, it’s very likely that BTC will continue down this path. Volume seems to have spiked substantially over the last day or so as BTC has incurred these strong dips.
Both the MFI and the MACD are swinging downward, which is also a fairly bearish indication in the short term. On much of the technical side of things, it wouldn’t be surprising to see BTC continue to dip if these circumstances do not change.
The overall cryptocurrency market cap is now just below $1.9 trillion with a volume of approximately $87 billion. BTC dominance is currently at 41.5% with ETH dominance at 19.5%. With these dips, it’s not surprising to see money flow from ETH and altcoins back into BTC.
ETH 4-hour candle chart, 4/11/22
Ethereum is also struggling this Monday morning. Following BTC’s strong movement downward, we’re seeing ETH breaking support and testing lower ranges. It’s very likely that ETH’s movement will continue to follow BTC’s.
ETH’s MFI is currently trending downwards back towards the oversold territory, while the MACD’s momentum waves and EMA lines are trending downwards steeply. Its ratio has also taken a hit as well. Unless there’s a strong development on the fundamental side, this is likely going to continue as long as BTC leads crypto markets downwards.
ETH/BTC 4-hour candle chart, 4/11/22
With the strong dips that have occurred over the past couple of days, BTC is not outpacing ETH. ETH tested down to former resistance turned support, and quickly rocketed up to find higher support that it’s currently attempting to hold.
