Negative sentiment continues

Fundamental data

The general appetite in financial markets remains negative. Recent rallies in the crypto market have mostly been sold, as negative headlines also push markets lower. The general sentiment remains weak with some focus now being diverted to quantum computing. The threat remains real and might disturb the safety of certain networks. It might also be in the far distance to other market observers. If the cryptography no longer holds, this might underpin trillions of Dollars in digital assets.

According to Wall Street analyst Jefferies, investors should remove Bitcoin from any portfolio. The risk that quantum computing becomes available rather soon, might hence offer a huge safety threat to the network. Others see this issue as way less important. Ark Invest owned by Cathie Wood is pointing out that this is a long-term risk but a risk nonetheless.

So, in the end it remains up to the trader what shall be in their focus: during times of bearish price action certainly the focus stays on negative market data, while positive milestones are being ignored at most.

Technical analysis:

– BTC: Bitcoin is trading at USD 66,639. The price of this token has attempted to move higher several times for the past weeks but always failed to rise substantially. Supportive trends have eventually given way causing this market to break lower.

BTCUSD, daily chart

The daily chart above shows that the market failed to push above the 50- moving average zone, when touching this level. This has been the case throughout January this year and also seems to happen now as the chart shows. A break of the USD 65,000 zone might cause the market to weaken again and traders should follow this trend.

– ETH: Ethereum is currently trading at USD 2,002 just slightly above the major psychological round number of USD 2,000. A break below might hence offer significant downside momentum, based also on technical charting levels.

ETHUSD, weekly chart

The weekly chart above shows the important rising trendline, which has offered support for Ethereum since mid of 2023. A break of that level might hence lead to a major fall of this market. Two weeks ago, the recent attempt to rise failed with the market pushing down again. Only a break above the USD 2,400 might indicate that ETH will move to the upside again.

– XRP: XRP is currently trading at USD 1.3291. The price of this token has failed to move higher as well and now the market is trading at the end of this month. If the current candlestick will end bearish, the downside pressure for Ripple might increase as well in April.

XRPUSD, monthly chart

Given the 50- moving average zone being in sight at USD 1.0928 the market might find some support if the pressure to the downside will continue. A rise in prices of bigger magnitude might only follow if the token is able to break above the USD 1,5000 level. Until then traders should focus on the important support zone between 1.2000 and 1.0000 to find potential entries to the upside.

– SOL: Solana is currently trading at USD 82.31. The pressure of Solana below the USD 100.00 level has increased and traders seem to rather sell rallies within the downtrend.

SOLUSD, weekly chart

The current zone at about USD 85.00 seems to give way currently with prices ready to weaken further. Early February the price briefly tested the USD 70.00 level, which might still act as support for SOL. Long- term charts, however, suggest that the price might fall further towards the USD 50.00 range.