The crypto market has been performing well in the past week in an upward direction, posting gains of around 8% in the investor's portfolio. Crypto enthusiasts have seen an eventful week as inflation data and improvement from Shanghai favor investors.
According to the Bureau of Labor Statistics report On April 12, the US Consumer Price Index (CPI) rose just 0.1% in March. This was less than expected as it had risen 0.5% in February. Following this news, the king of the market, Bitcoin, gained 1.6% on April 13 with sustainable momentum above $30,000.
Crypto Market Cap Weekly Chart
The overall crypto market capitalization drew three bullish candles on the weekly chart. However, the bears found a significant dominance zone near 1.27 trillion (mentioned above on the chart), as this zone was a crucial demand zone from February 2021 to May 2022.
Over the last three weeks, the trading volume bar showed dominance from buyers. But the week started with a red trading volume bar, suggesting that the bears may take control of the market for a short period of time before rallying. In terms of pullbacks, the weekly RSI has also turned negative and could revisit the 56 level, the uptrend line support area, before rallying.
The current price action
However, the crypto market is calling for an uptrend for longer-term aspects, as BTC surged to its 10-month high and 2023 high of $31,170 on April 14, and Shapella's update on Ethereum last week. past, extended the bullish rally in ETH. at 13.97%.
Conversely, for a short-term perspective, the Bitcoin price failed to hold the top and declined today. Meanwhile, BTC is correcting lower after breaking the neckline of a head and shoulders pattern (green) on the 4-hour price chart. The bears successfully dragged the cost of BTC below $29,800 as it is currently trading at $29,538 against the US Dollar.
A pullback in BTC could further fuel weak market sentiment. This pullback could turn bullish near the $28,700 area due to an ascending support area. As of now, the RSI has crossed into the oversold high zone and the MACD is about to enter the negative zone, showing short-term negative signals.
Can Minor Sell-Off Drag Overall Crypto Market Cap to $1.17 Trillion?
Due to Bitcoin's dominance, a $1,000 point retracement in BTC could lead to a short-term drop in crypto market capitalization โ around 3.5%. Currently, the crypto cap is $1.22 trillion with an intraday loss of 1.72%.
According to the SAR indicator and the 21 SMA, the sellers may continue to dominate the market down to the $1.7T level, while the bulls have a fundamental support area at this level. Specifically, the daily RSI is heading lower from the oversold region and may be receiving support on an uptrend line.
The ongoing pullback phase in the crypto market may fuel another healthy uptrend and kick off the long-awaited alt season, if the crypto market picks up support from the uptrend.
