- The crypto market slowed down last week, with Bitcoin testing the $28K short-term resistance level.
- The Shapella upgrade for the Ethereum network goes live on April 12. When most other top cryptocurrencies lost a bit of market dominance, ETH’s dominance went higher. And the $1800 support level proved strong.
- The US non-farm payrolls grew by 236K in March, and the unemployment rate fell to 3.5% in March. These figures should hold strong consideration when the FOMC sits to decide the interest rates.
- Total crypto market capitalization remained at $1.15 Trillion. It remained flat as compared to the previous week.
- Daily trading volumes dropped significantly during the past week, dropping to a daily average of $41 Billion daily, from $72 Billion a week before.
The $1.2 trillion market cap region remains a crucial point of inflection, with the market exhibiting a watchful stance over the past few weeks, as evidenced by the chart. Moreover, the upcoming unlocking of roughly 16 million staked ETH on April 12th represents a pivotal moment for market participants to consider.
Furthermore, the trend in the total market cap closely mimics the trajectory of Bitcoin, which boasts a market dominance of over 47%. It is noteworthy that BTC appears to be following a Bull-Flag pattern, which is a bullish indicator.
The EU and US stock markets reported higher closings on Friday as fears of banking contingencies slowed. Conversely, the crypto market remained relatively flat during the previous week. The state of the employment market in the US, which was published this Friday, gave confidence that the Fed may be approaching a potential slowdown in the face of additional interest rate hikes.
However, it is also evident that the short term correlation between equity and the crypto markets is relatively low. The crypto market is slowing down after an excellent start to the year, as apparent from the charts and asset prices.
Deep dive into the top gainer and loser
We closely analyze the performance of top 50 coins by market capitalization, and take a closer look at the best and the worst performers of the week.
Dogecoin (DOGE) up by 6.08% ⬆️
DOGE experienced a surge of ~30% within a short span, subsequent to Elon Musk’s alteration of the Twitter profile logo from a blue bird to an image of the popular Shiba Inu dog meme that inspired the coin.
However, the rally proved to be short-lived as DOGE registered a daily loss of more than 8% on Thursday. This decline in the coin’s value can be partly attributed to Twitter’s recent reversion to its original logo, which resulted in a loss of momentum for DOGE.
Our verdict: As was expected, DOGE followed a short-lived rapid rally. With the volumes dipping, and demand rapidly dying down, we can expect the price-action to follow suit.
Hedera Hashgraph (HBAR) down by 8.76% ⬇️
Hedera Hashgraph’s native token had a tough time this week following its rally over the previous week. However, this price action was expected as part of the market correction. We had anticipated this move, when we published our previous edition of the market outlook report. You can find that here.
Our verdict: We can expect HBAR to follow a range-bound movement over the course of this week. The Exponential Moving Average (EMA), which is depicted by the light blue line inside the Bollinger Bands, is a strong virtual resistance level, where traders are bound to become active.
The cryptocurrency market is currently exhibiting a range-bound movement as it approaches the $1.2 trillion market cap region. The unlocking of 16 million staked ETH on April 12th is undoubtedly crucial.
The short-term correlation between equity and the crypto markets is relatively low at the moment. As for the top gainers and losers, Dogecoin experienced a brief surge due to Elon Musk’s tweet, but its price is expected to decline. In contrast, Hedera Hashgraph’s native token is expected to follow a range-bound movement in the short term.
With BTC’s price action signalling the formation of a Bull-Flag pattern, which is a bullish pattern, the coming days are indeed going to be exciting.
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