Elon Musk’s Twitter investment drives volume on Dogecoin.

Cryptocurrency
Bitcoin and Crypto Market Watch Tuesday, April 05, 2022 - 19:41

The global crypto market has stabilized above $2 trillion market cap as Bitcoin (BTC) successfully rebounds from its test of key support level at $44,500 last week. This has given a much-needed fillip to key altcoins who are regaining some of their losses from Q1 this year. The story of the week belongs to Terra (LUNA) which is now a top 7 crypto by market cap after overtaking Ripple (XRP) in the top 10 lists this week. LUNA has surged more than 35% in the last one month and is setting new all-time highs weekly. In this article, we will take a brief look at the price actions of crypto assets and the short-term outlook for BTC.

Bitcoin continues to consolidate below its 200-day average

Bitcoin's bullish momentum seemed to have weakened mid-week as the top cryptocurrency dropped to a key support level at $44,500. Having bounced from the same, it is now consolidating in a narrow range of $46,000-$48,000. The 200-day moving average around $48,000 is a key resistance level that BTC has to flip to continue its journey towards $50,000. Bitcoin is currently trading just below $47,000 with a 2% decline on a weekly basis.

Investors, though, remain confident that the ongoing sideways move will pave the way for more substantial gains later this month. With liquidity and on-chain signals presenting a case of limited downside risk, the market is moving towards a big positive move driven by institutional investor demand. Microstrategy, the biggest institutional investor of Bitcoin, has announced another purchase of 4,167 BTC worth nearly $190 million today.

Ethereum and altcoins gain

Ethereum (ETH), meanwhile, has breached $3,500 price level and remains in a consolidation range that extends up to $4,000.

Within the top 20, Solana (SOL), Terra (LUNA) and NEAR Protocol (NEAR) have had double digit growth this week followed by Dogecoin (DOGE) with a 6% weekly gain.

LUNA has gained 6% daily and 13% weekly on the back its ecosystem purchasing BTC reserves as well as yesterday’s news that UK’s treasury will regulate some stablecoins as part of a wider plan to make the UK a hub for digital payment companies. Terra ecosystem’s TerraUSD (UST) is an algorithmic stablecoin that enables growth in LUNA’s price as adoption for UST picks up.

Elon Musk’s purchase of 9% stake in Twitter gave Dogecoin fans much to cheer as they believe that Twitter will soon integrate DOGE for payments and other tipping purposes. DOGE rallied 10% within hours of this news but has stabilized since. We would like to remind all investors that DOGE remains a volatile investment with no fundamental utility.

Short term outlook

According to Glassnode, institutional investors have been allocating funds to Bitcoin, Ethereum, and altcoins despite the fragile macro environment.

April is traditionally a positive month for the crypto markets. It seems the trend is set to continue as BTC retests its 200-day moving average resistance in the coming week. If BTC zooms past $50,000, many retail investors are likely to head back into the market and drive volumes for key cryptocurrencies.

Use promocode TNM51 at www.giottus.com/profile#promo after registration to get Rs.51 worth free Bitcoin

Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.

Become a TNM Member for just Rs 999!
You can also support us with a one-time payment.