BTC Continues Its Downtrend
Neither this post nor any other on cryptofal.com should be taken as financial advice. It is not.
BTC 4-hour candle chart, 4/14/22
After testing below $40k and below this descending line of support, BTC found itself shooting up yesterday morning.
Even though it had some strong movement yesterday, it still has yet to definitively break this downtrend. It should be noted that volume has dipped significantly compared to when it broke through this line of support on Monday. With that being said, BTC is looking like it could go in either direction.
What will likely determine the direction will be any fundamental developments (such as LUNA purchasing more BTC), or a large influx of buy-side or sell-side pressure. For now, BTC looks as if it could continue down this path until it definitively breaks this downtrend.
The MACD’s momentum waves look to be swinging downward, while its EMAs are continuing their trek upward. The MFI is currently turning downward as it sits solidly in the middle between oversold and overbought territory.
The overall cryptocurrency market is currently at approximately $1.9 trillion with a volume of approximately $83 billion. BTC dominance is currently at 41% with ETH dominance at 19.5%. This means that most of the market seems to be moving relatively close together. This could be a good sign, especially if we end up seeing some sideways market movement dictated by BTC.
ETH 4-hour candle chart, 4/14/22
Ethereum was unable to break the support-turned-resistance after news came out detailing a delay in the ETH 2.0 merge to Q3 instead of June. This long-awaited update getting delayed may have taken a bit of the short-term momentum out of ETH’s price action.
Similar to BTC, overall volume has dipped significantly for ETH and BTC will likely determine whether we see an influx of buy-side or sell-side pressure for ETH. The MACD looks like it could be attempting to swing downwards, which wouldn’t be too surprising as ETH’s MFI is bordering overbought territory and swinging downwards.
