Bitcoin falls below $28,000 as cryptos consolidate
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(Kitco News) – Consolidation remains the name of the game in the crypto market on the first Monday of April, as prices traded mostly sideways while Dogecoin (DOGE) got an unexpected boost when Twitter’s blue bird logo was replaced by DOGE. called an April Fools prank that still helped push the altcoin 27% higher.
US stocks traded mixed on the day, with the S&P and Dow ending the day up 0.37% and 0.98% respectively, while the Nasdaq finished in the red down 0.27%.
Data provided by TradingView shows that an early morning bid by Bitcoin (BTC) bulls to push the price higher met stiff resistance at $28,500, leading to a pullback to support at $27,900, which has provided a solid level of support since March 20.
BTC/USD 4-hour chart. Source: TradingView
The weakening momentum of the crypto market was seen in the futures market, with April bitcoin futures “slightly weaker in US trading on Monday after hitting a contract high last week,” according to Kitco senior technical analyst Jim Wyckoff.
“BC bulls continue to have the solid overall technical advantage in the near term,” Wyckoff said. “The price rally has stalled but remains in place on the daily bar chart. The path of least resistance for prices remains sideways to higher.”
Analysts from Eight Global also highlighted the ongoing sideways price action for the crypto market in their Monday market update, saying, “Not much has changed on the Bitcoin chart since last week.”
“It would be bullish if the weekly 8EMA [exponential moving average] catching up with the price here in a week or two, rather than the price going down to test it, giving it a platform to jump from through resistance,” Eight Global wrote.
BTC/USD 1-week chart. Source: Eight Global
But caution is warranted, as “a tower top-like candlestick pattern” has appeared on the chart. “As long as a pullback from here finds support around the 34W EMA, things look set for a bullish continuation,” the analysts said. “Weekly RSI looks clean and has some ceiling to run.”
Looking at the 1-day chart, the previous day’s candle managed to close above the 8EMA, but started to drop below that level shortly after, taking out the green rising trendline support.
BTC/USD 1-Day Chart. Source: Eight Global
“Channel wise price has just tapped EQ,” the analysts wrote. “When the 34EMA comes hot from below, [we] wouldn’t be surprised to see price visit the bottom of the channel when it’s in sync with the 34EMA, testing both for support in one move.”
Taking a cautious approach, Eight Global recommended a “focus on the resistance $28,500-$29,000, $27,000 (channel EQ) and $26,700 (channel bottom) support levels pending reading the next move.”
Altcoins are traded sideways
Aside from Dogecoin, there were a handful of tokens in the top 200 that managed double-digit gains on Monday while the broader altcoin market was in the red.
Daily performance in the cryptocurrency market. Source: Coin360
Icon (ICX) saw the second best performance of the day with a gain of 15.18%, followed by a 14.88% increase for Solar (SXP) and an 11.94% gain for MobileCoin (MOB).
The total cryptocurrency market cap is now $1.05 trillion, and Bitcoin’s dominance rate is 38%.
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept responsibility for any loss and/or damage arising from the use of this publication.
