Bitcoin, Ether, Major Altcoins – Weekly Market Update May 3, 2021
The total crypto market cap added $303 billion to its value for the last seven days and now stands at $2,280 billion. The top 10 coins were all in green for the same time period with XRP (XRP) and Dogecoin (DOGE) leading the pack with 53 and 52 percent of gains respectively. Bitcoin (BTC) is currently trading at $58,500, ether (ETH) is at $3,150.
Bitcoin closed the previous trading week with a 12.8 percent loss after hitting its lowest point for the last 50 days on Sunday, April 25. It dropped as low as $46,937 during intraday but managed to recover to $49,186 before the candle close.
A combination of factors impacted the market and caused the most recent correction. Among these, we can distinguish the exhaustion of the uptrend combined with the lack of momentum strength and the renewed regulatory uncertainty.
The BTC/USD pair started trading on Monday by forming a solid bullish engulfing candle on the daily chart and completely erasing the losses from the period between Thursday and Sunday. The coin added 9.7 percent to its value and climbed back above the $51,500-$52,000 support zone.
The move was followed by another strong green session on Tuesday. Bulls continued to push forward and the leading cryptocurrency hit the 21-day EMA at $55,500 before closing at $55,000.
The mid-week session on Wednesday was no different and bitcoin reached the above-mentioned indicator, eventually ending the day at $54,892 after trading in the wide range between $56,500 and $53,700.
Naturally, the next target for buyers was to surpass the solid S/R level at $56,000, then climb up to the upper boundary of the old range at $59,500.
On Thursday, April 29, the BTC/USDT pair was once again rejected at the short-term EMA, which caused a pullback down to the $53,500 zone. The shorts, however, were quickly absorbed and the price reacted by forming a huge green candle on the last day of the workweek. This resulted in a 7.8 percent of increase and BTC regained positions above $56,000 closing the day at $57,800.
The first day of the weekend came with a low volatility session on Saturday as bitcoin closed flat.
Then on Sunday, it fell to $56,600, but not before testing the 21-day EMA during intraday.
What we are seeing on Thursday morning is bitcoin trading 3.5 percent higher, at $58,500.
The Ethereum project token ETH hit its lowest point during last week’s correction on April 23 when it touched $2,106. On Sunday, it rebounded from the 21-day EMA on the daily chart and initiated an upside reversal using it as a dynamic support. The ether was 3.3 percent up for the previous seven-day period – its fourth consecutive week in green.
On Monday, the ETH/USDT pair continued to march North and added yet another 9.4 percent to its value. This led to the highest ever daily candle close at $2,534. The strong fundamentals combined with the stable bullish structure was attracting more and more buyers and the leading altcoin seemed in an unstoppable rally. On Tuesday, it increased by another $142 and peaked at $2,694.
The third day of the workweek was also the fourth on the green territory since the weekend low as the ETH token climbed further to $2,750, breaking out of the newly formed mini-uptrend corridor.
On Thursday, April 29, and Friday, April 30, the ether remained flat in the $2,750-$2,770 zone as profit-taking activities started to kick in after the 25 percent rally during the previous four days.
The coin ended April with a 45 percent increase – its seventh consecutive month in green.
The weekend of May 1-2 started with a continuation of the uptrend on Saturday. The ETH/USDT pair climbed further to $2,946 almost reaching the next major psychological level of $3,000.
On Sunday, it was a relatively calm trading day for the leading altcoin even though it was in danger of drawing a hanging man reversal pattern on the daily chart. It closed the week at $2,955.
The coin printed a new ATH on Thursday morning, currently trading in the $3,150 zone.
Top 10 Movers
The leading DeFi exchange is 61 percent up since hitting $26.9 during the last correction. The coin successfully moved back above the 21-day EMA on the daily chart last week and registered a new all-time high by touching its weekly high of $43.9 on April 29.
The UNI/USDT pair is now back to trading in an uptrend corridor with the next target for bulls being somewhere between the 160 percent Fibonacci extension at $47 and the psychological level of $50. Users are accumulating in anticipation of the upcoming Uniswap v3 launch scheduled for May 5. The fundamentals behind the UNI token are more than solid.
Altcoin of the Week
Our Altcoin of the week is Polygon (MATIC). The currently most advanced Ethereum Layer 2 solution added 109 percent to its value for the last seven days and climbed up to #35 on the CoinGecko’s Top 100 list with a total market cap of approximately $5 billion. The coin is 3,923 percent up since the beginning of 2021.
The price of MATIC kept rising as more and more Ethereum-based projects are deciding to launch products on layer 2 and choose Polygon for that. In late April, Aave and Curve launched on Polygon while the company itself announced a $150 million DeFi fund to support the industry and make it more accessible.
The MATIC/USDT pair peaked at $0.95 on April 30 and as of the time of writing is trading at $0.83 on Binance:
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