Bitcoin and Ether Market Update April 22, 2021
Total crypto market cap erased $55 billion from its value for the period since Monday and now stands at $2,020 billion. The top ten coins showed mixed results for the last 24 hours with Uniswap (UNI) adding 17.6 percent to its value while Dogecoin (DOGE) lost 14.2 percent. At the time of writing bitcoin (BTC) is trading at $54,240, ether (ETH) climbed to $2,2508.
Bitcoin formed its third consecutive red candle on the daily chart on Sunday, April 18, and continued to decrease in value. It was on its way down ever since it hit its highest ever value of $64,840 last Wednesday, prior to the Coinbase COIN stock market debut on NASDAQ.
The Sunday drop was the biggest for the BTC/USDT pair since February 23 when it erased $5,343 or almost 10 percent of its value for a day. The price of BTC moved below the short-term EMAs on the daily timeframe and touched the lower boundary of the old $59,500-$56,000 range.
On Monday, the market volatility continued to be felt by traders as the leading cryptocurrency was moving in the $57,700 – $54,230 area before closing yet another session in red at $55,600.
On Tuesday, April 20, it fell as low as $53,500 during intraday but managed to recover in the late hours of trading, eventually closing in green at the $56,480 mark.
The mid-week session on Wednesday did not bring any change in the market direction and BTC continued to hover around $56,000– a significant support/resistance line from the last few corrections and a lower part of the old trading range on the daily timeframe. Bears were once again in control and the BTC/USDT pair ended even lower – at $53,770.
What we are seeing on Thursday morning is a potential reversal in the downtrend, supported by a bullish divergence on the 4-hour timeframe.
The Ethereum Project token ETH hit a new all-time high at $2,544 on Friday, April 16, but it hasn’t been able to maintain the bullish momentum since then. The coin registered three consecutive red days and erased more than 11 percent of its value by Sunday evening. Still, the sudden decline did not impact the general uptrend that much and the ether closed the week with a 4.4 increase.
It is worth noting that the Sunday flash crash pushed the price of ETH all the way down to the next major support zone near $1,980, but buyers were quick to react on the same day thus preserving the bullish market structure.
On Monday, the coin fell further to $2,162 but found stability near the previous weekly open and the 21-day EMA.
On Tuesday, April 20, and Wednesday, April 21, the bulls successfully initiated a recovery and reclaimed their presence above $2,400, which represented an $8.85 percent of growth for the two-day period and a daily close at $2,358 on the third day of the workweek.
The ETH/USDT pair is making its way up to a new record price on Thursday morning, currently trading at $2,508.