Weekly Crypto Market Analysis 11.04.2022
Bitcoin has fallen by almost $ 6,300 in recent days, over 13%. Such a significant depreciation has already contributed to the oldest virtual currencies’ fall below the recently defeated resistance of around $ 44,500.
Currently, the BTC rate is hovering around another support of $ 42,200. So far, however, there has not been any significant demand response in this region that could signal its potential rejection. It makes it more probable that this is not the end of the declines, and the quotations of the oldest virtual currencies will soon slide to the region of $ 40,500, where there is an upward trend line that is the lower limit observed since the first half of January 2022 into upward wedge formation.
However, considering that the establishment of a new, higher peak, which occurred during the last upward move, may indicate a potential change in the market sentiment, the current downward trend may ultimately only turn out to be a correction.
This also means that while the short-term outlook should consider the risk of deepening declines, as long as BTC remains above the upward trend line, the medium-term outlook looks quite promising. Only a possible break from the bullish wedge to the bottom could negatively affect the medium-term outlook, thus negating the scenario assuming that a current decline is a form of correction, after which the BTC rate will return to the upward path.
The current situation on the Ethereum quotes is also very interesting. The exchange rate of this cryptocurrency has recently dropped by over $ 430, which is over 12%.
This depreciation pushed the ETH rate below $ 4,270, one of the most recently breached resistance levels. As a result of the slight (even symbolic) increases observed over the last few days, the cryptocurrency exchange rate returned to the vicinity of this level, testing it from the bottom (as a resistance). However, on April 8 and 10, the supply reaction reappeared.
If only the sale continues, we could expect to re-test another support in the $ 3000 region in the near future. Only the emergence of more significant demand response in these places, signalling a potential rejection of the support mentioned above, could initiate another upward impulse.
The current situation on Chainlink’s trading is also very similar. The exchange rate of this cryptocurrency has recently dropped by over 19%, thus returning below the level of USD 15.50.
If only this sale continues soon, we could expect LINK to return to the area of $ 14 or drop further to $ 12.50. It is there that the following levels of support are located, in the vicinity of which a more significant demand response could appear, which could initiate another upward movement.
We could also expect a continuation of declines in the UNI quotations. The price of this cryptocurrency has dropped in the last few days by almost 23%. This sale brought Uniswap back below technical support of $ 10.55.
If only the downward trend continues, we could expect to re-test another support around $ 9.25 in the near future, or if this barrier was also overcome, further depreciation towards $ 8.10.