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'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 (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.
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.
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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.