After a month of bullish activity, the overall crypto market is beginning to calm down as the week draws to a close. Major currencies such as Bitcoin and Ethereum are trading relatively flat, reflecting a lull in recent upward momentum.
However, artificial intelligence-linked tokens continue to perform well, driven by current momentum within the AI industry, with increased investor interest and activity in related digital assets.
In fact, following Nvidia's blockbuster earnings report this week, AI technology Tradfi stocks are all up, and Nasdaq's NVDA, AMD, and MSFT are all up this week. Nvidia called this a “tipping point” for AI.
Bitcoin current market position
Bitcoin opened the day at $51,252 and fell slightly to around $51,134, with a decline of just under 1% over the past 24 hours. The move underscores a consistent period of sideways trading since February 15. Decryption Previously reported.
The current position of the cryptocurrency is below the EMA10 mark (average price over the past 10 days), raising concerns that a strong correction could occur. Ending the day below this important benchmark could signal that bears are gaining a foothold in the market.
Some market indicators suggest a correction may already be underway.
The RSI (an indicator that measures the strength of the bulls relative to the bears in the market) was previously at an unusually high 80 points (meaning 8 out of 10 traders were buying), but has now reached 66 points. decreased. Although still high, this decline signals a shift to more balanced market dynamics and indicates that traders are not as obsessed with BTC as they were a few days ago.
The convergence of Bitcoin's EMA10 and EMA55 indicates that the gap between short-term and long-term buying performance is narrowing. This trend suggests a cooling where recent buyers (who bought his BTC in the past 10 days) are not seeing the same returns as buyers who entered the market earlier (in the past 55 days). It also explains why the RSI is also decreasing.
If this correction continues and EMA55 rises above EMA10, it could mean that the correction turns into a bearish trend and new buyers could face losses.
The market is currently considering the potential impact of the recent spot ETF approval and the upcoming Bitcoin halving. Halvings have historically affected Bitcoin's value, causing massive bull markets every four years, and could play a key role in shaping future market trends.
Ethereum market trends
Ethereum opened the day at $2,970, but has fallen 1.4% and the price has corrected to $2,947 at the time of this report. This move reflects the larger intraday decline compared to Bitcoin.
Despite being more bullish earlier, Ethereum has not maintained its momentum this week. The appearance of the Doji candlestick in yesterday's trading session indicates a potential change in market dynamics.
The Doji descriptor is used when the candlestick is flat and insubstantial, i.e. when the price does not change during the session. Yesterday, ETH started the day at $2,967 and ended the day at $2,968, suggesting some indecision among traders.
This pattern indicates that buyers and sellers are balanced, with neither side gaining a significant advantage, suggesting that Ethereum's dominant bullish trend may be weakening. doing.
However, Ethereum’s weekly performance remains positive, rising 6% over the past seven days. However, this increase is modest compared to the large increases seen in previous weeks. It soared 14.89% last week.
The observed slowdown in Ethereum’s value growth suggests the possibility of a minor correction. Since altcoins often follow the lead of mainstream cryptocurrencies, these adjustments can be influenced by Bitcoin market trends.
For long-term Ethereum holders, current market conditions still present a bullish outlook. Despite the possibility of a short-term correction, the overall trend favors holding the coin for now.
Views and opinions expressed by the author For informational purposes only, not as a component Financial, investment and other advice.
