Crypto Frontline

Weekly Crypto Analysis April 18-24, 2022

Weekly Crypto Analysis April 18-24, 2022
April 18
08:44 2022

BTCUSD (Coinbase)

BTCUSD technical analysis

Source: TradingView

Despite the thin liquidity around the Easter holiday, Bitcoin sellers are relentless and still drive the price lower. As things stand right now, there is little hope for a fast pullback on the upside, given the buyers look overwhelmed when looking at the daily chart.

With that being the case, we think the following days will see the token weakening towards the $38k – $37k support area, and what happens there could signal whether buyers will shift the order flow in their favor, or if sellers will keep pushing the price lower, potentially towards $33k, where the current 2022 low is located.

A rising US Dollar and Treasury yields are the main headwinds right now, so watch out for whether those two variables will start to change. At the same time, technology companies are the most hit, and Bitcoin has a positive correlation with them. Selling on pullbacks seems to be the name of the game, so expect any push higher to be treated as an opportunity to get short.

ETHUSD (Kraken)

ETHUSD technical analysis

Source: TradingView

The sell signal off the daily 20 SMA generated at the beginning of April continues to lead Ether lower, and now the price cleared the psychological support area around $3k. As a result, the bearish sentiment should dominate this week, and we believe buyers would have a difficult task when defending the area around $2.8k -$2.7k.

That is also where an ascending trendline can be noticed, so a breakout lower would be a major bearish development. $2.5k and $2.2k could follow next as downside targets. The market is treating ETH the same as other tokens, despite some optimism related to Ethereum 2.0 developments.

This isn’t the right time to start buying, considering the price can go even lower. Investors across the financial industry have a low-risk appetite, an environment not favoring cryptos like Ether. In case the price breaks above the daily 20 EMA, buyers could have some hopes, but now sellers are the ones in control.

ADAUSD (Binance)

ADAUSD technical analysis

Source: TradingView

Cardano is down 12% over the past 7 days and ranks high among the top-losing major altcoins. However, when looking at the broader picture, we can see that although the price is in a well-established downtrend, there’s also a range that has been shaping up since the beginning of February.

The top of the structure is located around $1.2 while the bottom is at 80 cents. In case the price will start to react positively after a retest of the lows, that could be an early signal for a bounce higher. We’re talking about a 50% upside potential if the range will continue to be in play.

On the other hand, if the price breaks lower and sellers treat the 80 cents area as resistance instead of support, that might push ADA towards 60 cents or even 50 cents over the upcoming weeks.  Cardano is still the 8th largest crypto by market cap, so investors could be tempted to buy and gain long-term exposure as the price reaches attractive levels.

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