The complete overview of the day's events on the (crypto) markets. Compactly summarized in the market commentary of the CVJ.CH editorial team.
Market Commentary
Bitcoin (BTC) is still in the consolidation zone between USD 37,000 and USD 45,000. After last week's breakout attempt failed, all eyes turned back to the lower part of the range. If the support zone around USD 37,000 is broken, a rapid move towards the 30,000 mark becomes likely. The macro range between USD 30,000 and USD 64,000 has defined the price action since the end of 2020 and could not be broken so far.
It can thus be expected that a retest of the support zone at USD 30,000 will at least temporarily interrupt the downtrend. From then on, it remains to be seen whether the market will respect the macro range and initiate a countermovement, or a breakout to the downside will push the price towards the 2018 all-time high (around USD 20,000). For now, Bitcoin's correlation to equity markets remains at record highs, making the short-term trading path difficult to assess.
Ethereum shows relative strength
Ether (ETH) is also in a long-term range between USD 1,800 and USD 4,000, although the price held above it for two months and an all-time high around USD 4,800 was recorded. Similar to Bitcoin, Ether formed a consolidation zone after last year's gradual sell-off wave. This zone is located between USD 2,500 and USD 3,200, and a breakout would likely push the price to the border of the macro range.
As mentioned in a previous market commentary, the second largest cryptocurrency is holding up better than Bitcoin. This can be seen in the ratio between Ether and Bitcoin (ETHBTC), which has been in a consolidation phase for a year. Within a long-term uptrend, consolidations are generally to be interpreted positively and a decisive breakout would call for an aggressive move.
The relative strength is usually attributed to the Ethereum merge as well as the growing applications in the DeFi and NFT space. However, one risk remains the potential delay of the merge upgrade, the anticipation of which has certainly contributed to the uptrend. Delays are not a new phenomenon when it comes to major Ethereum upgrades. After all, there are hundreds of billions of user funds in smart contracts that would be at risk from a mistake.
It won't be June, but likely in the few months after. No firm date yet, but we're definitely in the final chapter of PoW on Ethereum
— timbeiko.eth (@TimBeiko) April 12, 2022
Shiba Inu Coin (SHIB) on Robinhood
Not much has changed in the altcoin markets, with most cryptocurrencies following Bitcoin and being in the red. One exception is Dogecoin competitor Shiba Inu Coin (SHIB). The mobile trading app Robinhood, which is mainly used by retail users for stock trading, listed the memecoin along with Solana (SOL), Polygon (MATIC), and Compound (COMP).
SHIB gained over 20% in a few hours in response to the announcement, while the other three cryptocurrencies only partially benefited: SOL +1.15%, MATIC +3.50% and COMP +8.48%. There were hardly any losers, the last 24 hours remained relatively calm.
Disclaimer
All information in this publication is provided for general information purposes only. The information provided in this publication does not constitute investment advice and is not intended as such. This publication does not constitute and is not intended as an offer, recommendation or solicitation to invest in any financial instrument, including cryptocurrencies and the like. The contents contained in the publication represent the personal opinions of the respective authors and are not suitable or intended as a basis for decision-making.
Risk notice
Investing in cryptocurrencies, is fundamentally associated with risk. The total loss of the invested capital cannot be excluded. Cryptocurrencies are very volatile and can therefore be exposed to extreme price fluctuations in a short period of time.
