Welcome to another crypto market outlook for the 5th of April!
With Trump imposing new tariffs on over 25 countries two days ago, the market has been melting in an aggressive downturn. The US500 recorded its second-largest drop since COVID. Will the market recover, or is more pain expected? Let’s go over the possibilities together.
Today, we will cover the following topics:
– Market Heatmap and Fear and Greed Index
– US500 and DXY
– USDT.D, Bitcoin and Ethereum Analysis
– Quotes / Advices
– Closing Remarks
Market Heatmap and Fear and Greed Index
The crypto heatmap continues to show nothing but red over the past couple of weeks, with BTC down by 1.4% and ETH by over 4.5%. The market shows no signs of recovery, as nearly every support level is being broken.
The Fear and Greed Index has been signaling “Fear” for almost two months now. The further the market drops, the more fear traders feel—and the cycle continues.
US500 and DXY analysis
According to our latest US500 analysis, it broke below the $5,800 structure marked in green and has been dropping like a meteor.
Currently, the US500 is approaching the lower bound of its rising channel, which intersects with the $5,000 round number and support level.
In the short term, as long as the US500 continues to trade within the falling channel marked in red, the overall outlook remains bearish.
For the bulls to finally breathe again, a break above the $5,200 major high is needed.
Meanwhile, a further decline into the $4,800–$5,000 support zone is expected.
The DXY also broke below its support and the structure marked in blue, shifting the momentum back to bearish. It is now trading within the falling wedge pattern marked in red.
In the short term, DXY is in a correction phase, trading within the rising wedge pattern marked in orange.
As DXY retests the gap marked in green along with the blue structure, we expect another bearish leg to follow.
USDT.D, Bitcoin, and Ethereum analysis
As per our latest market outlook, USDT.D remains within a broad range between 5% and 5.5%.
Currently, USDT.D is attempting to break above the 5.5% level, which—if it happens—would signal more pain for the crypto market.
This week, USDT.D has been trading within the short-term falling channel marked in red. We expect a further decline toward the blue demand zone and the lower red trendline.
If this plays out, it would be a bullish signal for the crypto market.
Following up on our latest market roundup, BTC is hovering within a tight range between the upper orange trendline and the $81,200 major low, both marked in orange.
If the $81,200 level is broken to the downside, a bearish impulse toward the $75,000 support level becomes highly likely.
In the short term, unlike USDT.D, BTC has been bullish, trading within the rising channel marked in red.
As long as the bulls maintain control, a move toward the $87,000 supply zone is expected, which aligns perfectly with the upper red and orange trendlines.
ETH is currently trading in no-man’s land, between the $1,500 support and $2,000 resistance levels.
As it approaches resistance, we’ll be looking for short opportunities; and as it nears support, we’ll be looking for long setups.
After breaking below the $1,940 structure marked in green, ETH’s momentum has shifted to bearish, trading within the falling channel marked in red.
For the bulls to regain control, a break above the upper red trendline is needed.
In the meantime, ETH remains bearish, and a further decline toward the lower red trendline and the $1,500 support level is very likely.
Quotes / Advices
The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street.
~Jesse Livermore
Closing Remarks
In summary, the crypto market remains under pressure, with fear dominating sentiment and major assets struggling to hold key support levels.
The US500 has seen a steep decline following new tariffs, while the DXY’s bearish momentum adds further weight to the risk-off tone.
USDT.D’s potential breakout signals more caution, although its short-term dip could offer relief to crypto bulls. BTC remains range-bound with a bullish short-term structure, targeting $87,000 if momentum holds.
Meanwhile, ETH is stuck between key levels, leaning bearish unless it breaks out of its falling channel. Traders should stay alert as volatility continues to shape the week ahead.
