Crypto’s Attempt to Stabilise

Market picture

The cryptocurrency market struggled to find its footing on Monday, showing signs of a bullish effort to avoid slipping into a deeper downturn. A late-day rebound in the stock market provided some support, helping push the total market cap up by 1.1% over 24 hours, though it remains down 5% over the past week. From a technical perspective, this is a bounce within a broader downtrend, as trading remains below the 200-day moving average.

Unsurprisingly, Bitcoin is outperforming altcoins in the current climate. Its dominance has now surpassed 61%—the highest level in four years. Meanwhile, the price is hovering around $83,000, marking a 3% decline for the month. Last week’s attempts at consolidation and recovery were short-lived, leaving Bitcoin in a tightly compressed range. When it eventually breaks out, the move is likely to be significant. The key question is: which direction will it take?

Historically, April has been one of Bitcoin’s strongest months. Over the past 14 years, the month has ended higher nine times and lower five times, with an average rise of 21.6% and an average decline of 8.8%.

Ethereum, often seen as the market’s early warning system, is struggling. It closed March at nearly $1,800, taking it back to levels last seen in late 2023. Over the past month, ETH has dropped below its 200-week moving average and hit its most oversold level in three years. Its market share is now at a five-year low—more a sign of fading momentum than an accumulation phase.

News background

According to CoinShares, global crypto investment funds saw $226 million in inflows last week, following $644 million the week before. Bitcoin attracted the bulk of the investment, with $195 million in inflows, while Ethereum saw $15 million, Solana $8 million, and XRP $5 million.

The Strategy company continues its aggressive Bitcoin accumulation, adding 22,048 BTC for $1.9 billion. The company now holds over 528,000 BTC, worth approximately $43.8 billion at current prices.

Meanwhile, BlackRock CEO Larry Fink warned in his annual letter to investors that the unchecked growth of US government debt and budget deficits could threaten the dollar’s status as the world’s reserve currency. He suggested this could accelerate the shift towards alternative assets like Bitcoin.

The FxPro Analyst Team