Weekly Crypto Analysis: BTC Dominance Reaches 2-Year High; $27k Price Level Holds

2023/04/25 09:49:45

On April 25, Bitcoin struggled to maintain its foothold above the crucial $27,000 level, following a lackluster end to the Wall Street trading week. Being a strong support, it was important Bitcoin held the support as losing it could have seen Bitcoin drop to the next key support at $22,500.

Data from TradingView revealed that the BTC/USD pair had recorded a 8% loss for the week and a 0.5% decline throughout April. This turnaround in fortune marked a significant departure from the robust performance exhibited by Bitcoin in the first quarter of the year.

Ethereum, on the other hand, has started seeing some institutional buying since the Shanghai update went live. Michiel Milanovic, an analyst at ConsenSys, a prominent Ethereum blockchain developer firm, has reported a significant surge in inflows for top institutional-grade ether (ETH) staking service providers in April.

ETH Depositor Count - Source: Dune Analytics

In fact, the inflows for these providers have already exceeded last month's total by three times. Notably, a staggering 80% of these inflows were recorded between April 12 and April 22. These figures suggest a growing interest in ETH staking among institutional investors, highlighting the maturation of the cryptocurrency after the Shanghai upgrade was completed.

Recent developments reveal that Radix, a distributed ledger technology that centers on decentralized finance, has achieved an impressive milestone. Within the last 30 days, the value of its native token, XRD, has surged by over 100%, thereby securing the top spot as the best-performing cryptocurrency among the top 100.

RDX/USDT - Source: Tradingview

Top Altcoin Gainers and Losers

Top Altcoin Gainers

BitTorrent (BTT) ➠+3.51%

Zilliqa (ZIL) ➠ +1.32%

USDD (USDD) ➠ +0.01%

Top Altcoin Losers

Conflux (CFX) ➠ - 27.39%

Woo Network ➠ - 28.12%

SingularityNET (AGIX) ➠ - 22.93%

Fear and Greed Index at 64, Bitcoin leads Market Into Greed Zone

With Bitcoin losing almost 10% this week, investors are changing gears to panic mode, as seen in the fear and greed index dropping to 56 from last week’s figure of 64. The fear and greed index is still in greed zone, but the current market structure might shift sentiments rapidly.

Crypto Fear & Greed Index | Source: Alternative

This Week’s Crypto News Highlights

Over 30% of TikTok Videos On Crypto Investments Are Misleading: Research

According to a recent study by daapGamble, over one-third of crypto influencers on TikTok, a popular social media platform among younger generations, have shared misleading videos about Bitcoin and other cryptocurrencies. Many viewers now turn to TikTok as their primary source of information, but the study alleges that many influencers provide unverified and false information about crypto investments, often attempting to persuade unsuspecting viewers, including minors, to invest their hard-earned money in cryptocurrencies that will result in financial losses.

TikTok Misleading Crypto Videos | Source: DaapGamble

The study analyzed 1,161 crypto-related videos on TikTok using the hashtag "#cryptok," and found that more than one in three of them were misleading. Furthermore, only one in ten accounts or videos provided any form of warning or disclaimer about the risks involved in investing in cryptocurrency. The study also found that 47% of crypto TikTok creators promoted services to make money.

Content Creators Selling Courses | Source: DaapGamble

The study revealed that one in three misleading videos on TikTok referred to Bitcoin. Additionally, videos tagged with popular crypto-related hashtags like #crypto, #cryptok, #cryptoadvice, #cryptocurrency, #cryptotrading, and #cryptoinvesting collectively received over 6 billion views. Viewers often overlook influencers' malicious intent and blindly trust their content based on the number of views or likes. Both novice and experienced investors are advised to conduct extensive research on crypto projects before investing any money.

Crypto Lender BlockFi Is Granted Extra Time To File Chapter 11 Exit Plan

On April 19, a bankruptcy judge in New Jersey granted BlockFi, a digital asset lender, extra time to submit their bankruptcy exit plan. The lender filed for bankruptcy in November 2022 and has been given a 48-day extension until May 15 to present an exit plan. During a hearing on Wednesday, BlockFi's lawyer, Joshua Sussberg, stated that the company is considering either selling its assets or finding external support for a restructuring deal.

Under the bankruptcy code, debtors are required to propose a Chapter 11 plan within 120 days of filing. BlockFi was expected to submit a plan by March 27, but the company requested a 90-day extension until June 26 due to the scale and complexity of the case. BlockFi is estimated to owe over $10 billion to more than 100,000 creditors. The bankruptcy judge, Michael Kaplan, extended the deadline to ensure a smooth continuation of the case.

Trust Wallet To Reimburse Users After $170,000 Security Incident

Trust Wallet, a cryptocurrency wallet, has revealed that a security flaw caused some users to lose nearly $170,000. However, the company has since addressed the vulnerability.

The problem was discovered via Trust Wallet's bug bounty program when a security researcher reported a WebAssembly weakness in the open-source library Wallet Core in November 2022. Trust Wallet confirmed that only wallet addresses created through the Browser Extension between November 14 and 23, 2022, were affected, and all addresses created before or after those dates are secure.

The breach resulted in two attacks, resulting in the loss of almost $170,000. According to a postmortem report, about 500 vulnerable addresses still contain $88,000. The affected users will be refunded and given gas fee assistance to help with the cost of fund transfers.

Bitcoin (BTC/USDT) Technical Analysis

Bitcoin is consolidating in a critical support zone after losing 10% of its value in a week. The 50-day simple moving average ($27,494) is on the chart, and as seen in previous time, this is often indicative of a big move, but it is unclear in which direction. The RSI on the positive side gives bulls a slight edge, as does the downsloping 200-day moving average and 50-day upsloping moving average.

Analysts state that buyers will have to push and sustain the price above the 50-day EMA to signal a comeback and this could attract buying and push the price toward the $31,000 to $32,500 resistance zone.

BTC/USDT Chart on the 1-Hour Timeframe | Source: TradingView

If the price turns down from the current level and slides below $27,125, they state that it will suggest that the sentiment remains negative and traders are selling on every minor rally. That will increase the likelihood of a fall to $26,440 and eventually to $22,500.

BTC Dominance Chart | Source: TradingView

Bitcoin's dominance has reached its 2-year high. In the past, when this happened (in 2021 and 2022), the market showed mixed reactions. In 2021, when Bitcoin's dominance was falling, capital flowed into altcoins, and the entire crypto market grew. Whereas, in 2022, Bitcoin's dominance fell from the same 49%, but then the crypto market bled, with assets showing -50-80%.

The correction of BTC dominance has now begun. How will the cryptocurrency market react?

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