Given that macroeconomic and geopolitical issues persist, there is no strong appetite for risk in the markets. Although data might inspire hope, the current Bitcoin price fluctuates below $64,000. The main issue here will be the rapid losses that altcoins will experience in a swift decline. So what do the charts currently indicate for Bitcoin and Ethereum?
Bitcoin (BTC)
On April 22, the price surpassed the 20-day EMA at $65,855, but sellers halted the rally at $67,500. Rapid profit-taking and a lack of appetite among investors expecting further declines recently led to increased losses. The balance between supply and demand shifted against the bulls, resulting in the loss of the 20-day EMA.
However, it’s too early for pessimism as ETF data has not yet arrived. Moreover, if the upcoming Friday’s PCE data is positive, the bulls might regain strength. The current outlook suggests a decline towards $60,775 and $54,298 if closures remain below the 20-day EMA.
Below $60,775, sales could accelerate, leading to losses nearing 40% for altcoins. In a bullish scenario, the target is a closure above the 50-day SMA ($67,500) aiming for $73,777. We have discussed lengthy upward targets before, so no further details are necessary. As this article was prepared, the U.S. markets had recovered some of their losses.
Ethereum (ETH)
As Bitcoin bulls move away from their $84,000 targets, Ethereum‘s price continues to struggle above $3,000. On April 24, the Ether price climbed above the 20-day EMA ($3,237), and as we can see from the long tail in the candlestick, it did not concede to the bears. At the time of writing, the ETH price is at $3,141, and significant losses could occur if it closes below the critical region, similar to the BTC scenario.
If the price begins to decline, there is a critical support level at $2,852 that could be tested. Below that, support is found at $2,700. However, if the price rebounds from the 20-day EMA, it could reach $3,466 and $3,679. Optimism for the ETF has weakened, leaving bulls currently demotivated.
