Market Overview: 23 — 29 April
Last week was the week of correction. In the previous overview we mentioned that correction would be very logical for the current situation. On the last day of April, Bitcoin is trying to consolidate at the $9300 level. Whenever it rises beyond $9400, intensive sales start. But at the same time, sellers aren’t ready to offer their cryptocurrency for less.
Market players are waiting what happens next and the forces of “bulls” and “bears” are more or less equal at the moment. Trading is even marked by anxiety. For instance, on April 28 the price reached $9500 and $8750 mark points in just 5 minutes and then returned to its normal volatility.
The main support levels for the following week are $9000 and $8500. The main resistance levels for the following week are $9800, $10500 and $11700.
The total cap of the cryptocurrency market passed the 400 billion mark point and has been kept above this level for 4 days already. With the increase of EOS and other altcoins’, Bitcoin dominance index lowered to 36,7%. We’d like to remind that the minimum of 33% was reached in January and that Bitcoin price can increase with advancing rate. At such moments, many traders prefer to switch from altcoins to the market ‘engine’ giving Bitcoin additional strength.
There are several factors demonstrating that the downtrend is likely to be over.
First of all, intensive SHORT selling. For Bitfinex exchange, the short volume has dropped twice since mid April.
Secondly, the rising activity of Bitcoin network. The number of transactions has increased again up to 200 000 and even 250 000 in 24 hours. The average block size is also growing.
Finally, another factor is the reaction to the media background. The market reacts much calmer to negative news. Thus, for example, it totally ignored the information that the Mt. Gox trustee resumed cryptocurrency sale. The price also didn’t drop in response to Vitalik Buterin’s boycott of the major Consensus conference or his refusal to release frozen Parity funds due to its vulnerability and even critical vulnerability of multiple smart contracts of ERC-20 tokens .
We are expecting the following increase in price this week. The most important thing is how the main cryptocurrency is going to change. Bitcoin can reach resistance levels pretty soon that seemed unsurpassable in February and March.
