Weekly Analysis of BTC, ETH, and Altcoin Markets, April 1, 2024
This analysis offers insights into the price movements for BTC, ETH, SOL, OP, BCH, LINK, and the overarching trends in the cryptocurrency market.
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Bitcoin (BTC)
Bitcoin has successfully maintained its stance above the $68,000 threshold, hinting at potential growth continuation. The next milestone for buyers is surpassing its ATH of $73,780 reached on March 14.
The vital support zone is identified between $66,800 and $68,700. This area is prime for seeking long position openings on lower timeframes. A descent below $66,800 could lead the asset towards a corrective path, with the next support levels anticipated at $61,276 and between $54,400 and $56,900.
BTC H4 Chart
Ethereum (ETH)
Ethereum is echoing Bitcoin's trend albeit with distinct differences on the ETH chart. Buyers have struggled to break through the resistance zone of $3560–$3675, preventing the asset from achieving a new high. This barrier remains significant for further upward progression.
A successful break above $3675 could intensify Ethereum's upward trajectory, with initial targets for buyers at the $3840 level and the local high of $4093.
The correction scenario for Ethereum could be activated by a Bitcoin downturn. Should the selling pressure increase, ETH might decline to support levels at $3340–$3440 and $3040–$3200, possibly marking new local lows below these points.
ETH H4 Chart
Solana (SOL)
Solana continues on its upward trajectory. Interestingly, local corrections in the BTC chart have not significantly impacted this coin. Currently, the asset has neared the $201–$210 sell zone, and a firm break above this range could signal the potential for further growth.
It would be speculative to identify any resistance zones beyond the $210 level, as the SOL price hasn't reached such heights in over two years. However, Solana might not resume its growth immediately but could do so after technically testing the $175–$185 support zone.
A deeper SOL correction is on the cards if it dips below $175. Investors should keep an eye on the $162 and $164 support levels, as these will be crucial in determining the asset's subsequent direction.
SOL H4 Chart
Optimism (OP)
Optimism has been in an upward trend for nearly two years (since its listing), though it's currently caught in a sideways pattern between the $3.18–$3.41 support and the $3.94–$4.23 resistance zones.
Bitcoin's next moves are likely to influence OP's direction. Should BTC's decline persist, Optimism might test the psychological level of $3 and could refresh its low within the $2.64–$2.83 support zone.
An upward trajectory for OP would be confirmed upon securing above the $4.23 mark, potentially setting the stage for a new all-time high near $4.86.
OP H4 Chart
Bitcoin Cash (BCH)
Bitcoin Cash has surged 151% over two months in anticipation of its network halving. The forthcoming target for buyers is the $730 level, a high established on November 10, 2021, which the coin has yet to revisit since.
Discussing resistance levels amid an active upward trend seems unnecessary. Regarding potential supports, fresh long positions in BCH could be considered within the $602–$642, $553, and $490–$522 buyer zones.
BCH H2 Chart
Chainlink (LINK)
Overall, LINK is trending upwards, but it's presently navigating a broad sideways range between the $16.5 support and the $22.8 resistance levels. Exiting this range could dictate the asset's future direction.
Chainlink's continued rise seems plausible given the crypto market's overall positive momentum. To solidify an upward trend, LINK needs to establish above the $19.67–$20.60 resistance zone.
Should a correction intensify, LINK might retreat to the $14.3–$15.4 support zone.
LINK H4 Chart
BTC Dominance, Altcoin Season Index, and Fear and Greed Index
Over the past week, the Bitcoin Dominance Index has increased by 0.4%, now at 53.69%. This rise signals a continued preference among investors for Bitcoin over altcoins, indicating that the bulk of investment is still directed toward the primary cryptocurrency.
BTC Dominance Index. Source: tradingview.com
The Altcoin Season Index currently stands at 47, mirroring last week's figure. This level suggests a lack of enthusiasm for alternative cryptocurrencies, hinting that an altcoin season has yet to commence.
Altcoin Season Index. Source: blockchaincenter.net
The Fear and Greed Index reads at 79, categorizing the market sentiment as “Extreme Greed.” This shows that investors remain keen on adding cryptocurrencies to their portfolios, with a notable bias towards Bitcoin.
Fear and Greed Index. Source: coinstats.app
Economic News for the Week Ahead
This week is set to bring updates on several key macroeconomic indicators, including:
- Nonfarm Payrolls (NFP), the Services Business Activity Index, Crude Oil Inventories, and a speech by Fed Chair Jerome Powell (Wednesday, April 3);
- U.S. Initial Jobless Claims (Thursday, April 4);
- U.S. Unemployment Rate (Friday, April 5).
While these events might momentarily heighten market volatility, they are not expected to significantly alter the trajectory of the cryptocurrency market.
Check out The Coinomist for the latest cryptocurrency rates and chart analysis.
Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the price movement between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K – $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from The Coinomist:
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