Bitcoin Chart Analysis Shows $43k As Critical Level | Market Update
Report Date: April 8th, 2022
Bill Noble, Senior Market Analyst, Token Metrics
The Market Update is centered around using technical analysis to successfully and responsibly navigate the crypto market. It is not intended to be a trading calls newsletter. While technical analysis is an extremely powerful tool, please be aware that it can be temporarily disrupted by large news events.
Total Crypto Market Cap Weekly
Data as of 04/07/2022 – Past performance not indicative of future returns
Looking at total cryptocurrency market cap (TOTAL), support is at $1.94 trillion.
Bitcoin 4-hour Chart
Data as of 04/07/2022 – Past performance not indicative of future returns
Looking at the 4-hour chart of BTC, we see support at $43,200. A move above $45,000 is needed to restart the uptrend.
Ethereum 4-Hour Chart
Source: Symbolk
Data as of 04/07/2022 – Past performance not indicative of future returns
There is support in Ethereum between $3,100 and $3,190. If ETH can hold this area, an A-B-C correction may be complete allowing the up move to continue. If $3,100 does not act as support, there could be stop-loss selling.
Bitcoin – Weekly Chart
Source: Symbolik
Data as of 04/07/2022 – Past performance not indicative of future returns
BTC has major support in the $42,600 – $43,500 on the Bitcoin weekly chart. BTC has to remain above that level to stay in a bull trend.
Altcoin Charts of the Week
ETH: Daily Chart
Source: Token Metrics Data as of 04/02/2022 – Past performance not indicative of future returns
Token Metrics AI-based indicators show $3,180 is a critical support in Ethereum. If ETH holds above that level, the next objective would be a move to resistance at $3,412. A move above $3,412 would be very constructive for ETH. If ETH fell below $3,180, that would likely trigger stop-loss selling.
SOL: Daily Chart
Source: Token Metrics Data as of 04/02/2022 – Past performance not indicative of future returns
Token Metrics AI-based indicators show $119.47 is a pivot level in Solana. If SOL holds above that level, the upward trend may be intact. If SOL remains below $119, then a deeper correction is possible.
AVAX: Daily Chart
Source: Token Metrics Data as of 04/02/2022 – Past performance not indicative of future returns
Token Metrics AI-based indicators show $99 is an important resistance in Avalanche. If AVAX could get above that level, which could be constructive for the whole altcoins space. If AVAX can not climb above $99, support points are $82 or $64.
Key takeaways:
- The recent decline has tested the patience of bulls. We remain bullish as long as critical levels in BTC (42.6k) and ETH (3180) hold as support.
- The Federal Reserve has clarified that they reserved the right to stop printing money at an accelerated rate. This may create a decline in equities. This could also hurt crypto.
- If there is a positive development for risk assets, crypto will lead the way higher. We are reminded of that classic adage, “Don’t Fight the Fed.” Maintain stop losses on long positions and consider using equity market products to hedge against any possible drop.
