The evolution of the market during the past week was quite positive and BTC is now trading above the important level of USD 46,000. What can we expect next? We’ll break this down later in the article but first, let’s go over the main industry news.
News is one of the factors that impact cryptocurrency prices. It is important for every trader to stay up-to-date with the latest developments in the sphere. We’ve hand-picked some of the most interesting ones for you:
Coinbase Ventures, an investment arm of American crypto exchange Coinbase, shared a plan to invest $1 million in various Indian cryptocurrency and Web3 initiatives via an in-person pitching event.
In a blog post drafted while he was in India, Coinbase CEO Brian Armstrong revealed that the venture firm intends to tap into India’s software talent with the crypto and Web3 technologies and help accelerate India’s economic and financial inclusion goals.
Canadian Bitcoin exchange-traded fund (ETF) holdings have increased to all-time highs according to recent research, and spot-based products are leading the way.
Canadian Bitcoin ETFs have increased their holdings by 6,594 Bitcoin (BTC) since January to reach an all-time high of 69,052 total BTC held.
The Purpose Bitcoin ETF saw the biggest increase in holdings over that time period with a net growth of 18.7% to 35,000 BTC, according to Glassnode.
More than 80% of central banks are interested in launching a Central Bank Digital Currency (CBDC) or have already done so according to research conducted by accounting firm PwC.
The second annual Global CBDC Index report released on Monday, April 4, measures a central bank’s level of maturity in deploying its own digital currency. The report also included an overview of stablecoins for the first time.
BTC is trading this week once again in its USD 46000 resistance zone. The past week ended in a Doji pattern, a sign of market indecision.
It is not uncommon to see a pause period, in this case, a week, before a direct resumption of the trend. In the case of BTC, this could lead us towards USD 52,000 if confirmed.
The technical indicators on the daily horizon are well oriented to the upside. However, before we can decide on a full return to the upside, we still need to break out of the USD 52000.
Not surprisingly once again, when BTC hesitates, so does Ethereum! Prices have indeed changed very little since last week, settling for now at USD 3500.
There are two possibilities here, the first is a consolidation above USD 3500 which would then allow us to climb to the USD 4000 level.
The second is a failure just above USD 3500 and a potential return to USD 2800 – 3000. This would then allow us to open a long position, as ETH has registered a medium-term higher high.
Altcoin of the week: DASH
The DASH/USDT pair is now just below its resistance zone between USD 133 and USD 142.
If DASH manages to tag the USD 153 area, then we can open a buy position on a retracement.
The daily technical picture remains neutral for now with WaveTrend already giving a buy signal while MACD has crossed down.
Market sentiment can reverse very easily on cryptos as we just saw last week. Careful though, as long as we don’t have confirmation, we must base our decision on fact.
There is nothing more important for success in trading. Plan the trade and trade the plan! As simple as that. In fact, don’t be tempted to take dangerous positions and wait for confirmation.
I’ll see you next week, stay safe and take care of yourself!
Have a great week everyone!