elcome to another crypto market outlook for the 28th of April!
In this edition, we'll delve into major assets such as US500, DXY, Gold, Bitcoin, and Ethereum, highlighting critical levels and potential trade setups.
From Bitcoin hovering around the $60,000 support, to Ethereum approaching an overbought zone, and the Fear & Greed Index signaling 'Greed’ for the entire week, this article covers it all.
Are you ready?
Today, we will cover the following topics:
- Market Heatmap and Fear and Greed Index
- US500, DXY and Gold Analysis
- USDT.D, Bitcoin and Ethereum Analysis
- Quotes / Advices
- Closing Remarks
Market Heatmap and Fear and Greed Index
To initiate my research, I delved into the analysis by examining the market heatmap, which provided a comprehensive overview of the entire cryptocurrency market.
After experiencing rejection at the $62,000 support, BTC became stuck within a narrow range, closing the week slightly bullish at +0.59%.
This flat movement in BTC was reflected in the entire crypto market, with a mixture of bullish and bearish sentiment observed among altcoins.
The Fear & Greed Index remained stable, signaling "Greed" throughout the entire week. This implies that traders maintain optimism, though not to the extent seen last month when it reached the level of Extreme Greed.
US500, DXY and Gold analysis
We consistently monitor the US500 index to assess the current market sentiment. This practice is crucial because the cryptocurrency market often exhibits a significant correlation with the stock market, and this interconnection can impact its fluctuations.
This week, the US500 rejected the upper bound of the blue wedge pattern and is currently undergoing a correction phase.
As it nears the previous all-time high at $4,800, we anticipate the bulls to step in and initiate the next upward impulse movement.
In the 4-hour timeframe, in line with our previous outlook, the bulls took over following the breakout above the last major high noted in green at $5040.
US500 is currently bullish, trading within the ascending channel outlined in red. The bullish momentum is expected to persist unless there is a downward break of the lower red trendline.
We consistently monitor the DXY - USD Index as part of our routine analysis. This is crucial because the value of nearly all assets, including BTC/USD, is closely tied to the USD, which serves as the benchmark currency in the financial market.
DXY has been overall bullish trading within the rising channel marked in blue.
As anticipated, DXY has recently faced rejection from the upper boundary of the channel and is currently trading lower.
In the 4-hour timeframe, DXY has been overall bearish from a medium-term perspective, trading within the falling channel in orange.
As it nears the $105.25 support zone and the lower red trendline, we anticipate the bulls to kick in and initiate the next upward impulse movement.
Gold has maintained an overall bullish trend, trading within the rising channels outlined in blue and brown.
Thus, we anticipate a continuation towards the $2,500 round number and the upper boundaries of the channels.
In parallel, the bulls will remain in control in the medium-term unless the last low in orange at $2,300 is breached downward.
In such a scenario, a deep bearish correction towards the $2160 mark would be anticipated.
USDT.D, Bitcoin and Ethereum analysis
As a standard practice, I begin my analysis with USDT.D as it serves as a critical indicator of traders' sentiment. USDT.D provides valuable insights into whether traders are optimistic, signaling increased investment in cryptocurrencies, or pessimistic, indicating a shift towards stablecoins.
As anticipated in last week's outlook, USDT.D rejected the 5% resistance and traded lower.
Currently, USDT.D is retesting the 5% resistance, leading us to anticipate another round of bearish activity, which would be positive / bullish for the crypto market.
In the 4-hour timeframe, for the bears to take short-term control, a break below the last minor low highlighted in red at 4.72% is required.
For the bears to maintain medium-term control, a break below the structure marked in blue at 4.54% is necessary.
BTC has had an uneventful week, maintaining its position around the $60,000 - $62,000 support zone.
As long as the $60,000 support holds, we anticipate further bullish movement towards the $72,000 mark and the upper boundary of the red channel.
For the bulls to gain short-term control, a break above the last minor high highlighted in red at $64,750 is needed.
For the bulls to maintain medium-term control, a break above the structure marked in orange at $67,000 is required.
As anticipated in our previous analysis, ETH rejected the $2,900 - $3,000 support zone and traded higher.
Currently, ETH is nearing the upper boundary of the red channel and the $3,500 resistance mark, so we will be expecting the bears to kick in soon.
In the 4-hour timeframe, ETH has been bullish from a medium-term perspective, trading within the rising channel in orange.
As long as the bulls maintain control, we anticipate a continuation towards the upper red and orange trendlines.
Quotes / Advices
When selecting low market cap altcoins for trading, research thoroughly.
Look for projects with strong fundamentals, innovative technology, and a dedicated team.
Analyze the whitepaper, roadmap, and community engagement.
Monitor trading volume and liquidity.
And most importantly, consider factors like utility, adoption potential, and competition.
Closing Remarks
In summary, the cryptocurrency market reflects a mixed sentiment with Bitcoin's stagnant movement, impacting altcoins similarly.
The Fear & Greed Index stabilizes at "Greed."
US500 undergoes correction while DXY nears resistance at $105.25.
Gold remains bullish but corrects towards $2,300.
USDT.D shows a surge, indicating possible bearish activity.
BTC stabilizes between $60,000-$62,000, eyeing $72,000, while ETH tests resistance at $3,500 after rejecting support at $2,900-$3,000.
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