On April 25, the price of Bitcoin came close to the 38,000 mark but soon managed to recover and rose above 40,000. We even saw attempts to approach the 41,000 mark. But increasing bearish pressure prevented the price from doing so. As a result, the BTC price began a new round of decline and again dropped to the 38,000 area. At the time of publication, the price of Bitcoin still managed to return above 39,000.
Analysts explain the decline in the BTC price to the fall in US and Asian business indicators. The US indices Nasdaq and S&P 500 showed a drop yesterday. The Asia-Pacific indices as Japanese Nikkei and Korean KOSPI lost more than 1%.
At the same time, we are seeing the strengthening of the US dollar. The dollar index hit 102.43 points, the highest since January 2017.
Analysts also note the exit of institutional capital from Bitcoin and Ethereum. As cryptocurrencies with the biggest capitalization, they served as a haven for capital against the cheap US dollar, an increase in geopolitical risks, etc. However, the competition among the cryptocurrencies intensifies and other cryptocurrencies begin to attract the attention of investors. And now analysts are seeing capital outflows from the big two cryptocurrencies and inflows into other altcoins. Over the past week, altcoins such as Solana, Terra, Avalanches, and Algorant have recorded significant capital inflows. Last week, the inflow increased significantly. Avalanche got $1.8 million, Solana – $0.8 million, Terra – 0.7 million and Algorad – $0.2 million.
Totaly investment inflows into these altcoins amounted to $3.5 million when outflows for BTC and ETH have become commonplace. Even though the outflow of capital from Bitcoin slowed down last week, it amounted to $7.2 million. And the monthly outflow remains high at $178 million. Ethereum recorded the exit of 16.9 million.
On the daily chart, we see the formaing of a candle below the lower border of the rising channel. If the candle closes below the ascending channel, we do not exclude the beginning of a bearish correction stage.
On the 4 hours chart, BTC/USD continues to form a downtrend line that provides support of around 37,600. Further, BTC/USD will receive the support of around 37,500. A move below this level will send BTC/USD to the 36,200 area.
If BTC/USD manages to hold above 38,800 today, it will try to rise above 39,200. The strong resistance awaits around the 39,800 level. A move above this level will allow the BTC/USD pair to approach 40,000 again. However, BTC/USD must overcome the resistance of around 40,600 to continue rising.