Cryptocurrencies: April Fools´rally?
April Fools´ prank (the most popular spoof yesterday was that the SEC has approved Bitcoin ETFs) or beginning of a recovery rally? That is a question many cryptocurrency investors and speculators are asking themselves now. Let us have a look at the charts.
BTC/USD
* Bitcoin has reached an intraday high of almost $5100 today - a gain of more than 20 % on the day
* The cryptocurrency has retraced somewhat, but traders are asking themselves if this is the start of a proper recovery or merely a short-term rally driven by speculators covering their short positions
* BTC bulls have been struggling in recent months as interest in cryptocurrencies has been declining steadily, along with trading volumes
* The charts suggest the broad downtrend is still intact
* Heavy resistance is seen ahead of the $5200-5300 area - where the 38.2 % Fibo of the July-December decline and the 200 DMA are resting
* To the downside, support is seen at $4400-4450 - a former area of major resistance
* Bitcoin bulls would need a daily close above $5000 to regain some confidence
ETH/USD
* In Ethereum, traders will be keeping a close eye on the $161 level, which acted as key level of resistance several times in the past
* A daily close above that level may potentially help ETH/USD to regain some momentum following a prolonged period of consolidation
* The next major area to watch would then be $213-223 (November 2018 high + 200 DMA)
