TECHNICAL ANALYSIS

BTC - USD 

Support and Resistance Levels

The chart shows Bitcoin in a sideways movement with clear short-term resistance roughly around the 66,400 area, which can be seen by the price touches that fail to break through. The support level appears to be forming around the 65,400 level, where the price has bounced back up a couple of times.

Key Levels to Monitor

• Resistance: A break above 66,400 could indicate potential bullish momentum.
• Support: If the price drops below 65,400, it could signal a bearish move.

The price currently at 66,522 could be a pivotal point for short-term direction.

Bear Scenario

A sustained move below the support level of 65,400 could lead to further bearish sentiment, potentially testing lower support levels around 65,000 or below based on past price action.

Bull Scenario

If BTC manages to break and stay above the 66,400 resistance level with significant volume and a closing candle above this level, it could signal a bullish trend with the potential for further upside.

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ETH - USD 

Support and Resistance Levels

• The chart exhibits a clear upward trendline (green dashed line) serving as support, which the price has respected multiple times, indicating strong bullish sentiment.
• A downward trendline (red solid line) acts as resistance, and the price appears to be compressing below this line, suggesting a potential for either a breakout or a breakdown.
• The Simple Moving Average (SMA) shown as a blue line could act as dynamic support or resistance, depending on the price action.

Key Levels to Monitor

• The most recent low before the latest price action can be considered a key support level. If the price dips but remains above this level, the bullish trend could continue.
• The highest point of the resistance line serves as a key level. A decisive breakout above this line could indicate a potential for a bullish continuation.

Bear Scenario

• If the price breaks below the upward trendline and the SMA, it could signify a shift to a bearish sentiment. This could lead to a test of lower support levels, possibly the previous significant lows.

Bull Scenario

• A breakout above the resistance trendline could validate a bullish scenario, where the price may target previous highs or explore new resistance levels.

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HEADLINES OF THE WEEK

Bitcoin 2024 Halving

The much-awaited fourth halving event in Bitcoin's history occurred last Friday, marking a significant milestone that reduces the rewards for bitcoin mining but also promises to enhance Bitcoin's scarcity and value over time. Following this event, Bitcoin saw a modest increase to $65,891.28, up by 1.8%, while Ether also gained, rising 1.5% to $3,198.06.

Shares of major public cryptocurrency miners experienced a positive shift in the premarket trading on Monday, with notable companies like Marathon Digital and Riot Platforms seeing increases of around 3% and 5%, respectively. This uptrend also touched other players like CleanSpark and Iris Energy, which rose by similar margins.

The halving is designed to cut the rewards given to miners by half approximately every four years, ensuring Bitcoin remains a deflationary asset. Although the immediate market reaction tends to be subdued, the historical pattern suggests significant long-term price increases post-halving as the reduced supply heightens scarcity.

Large mining companies have strategically prepared for this event by investing in efficient mining equipment, expanding their electricity capacity, and increasing their computational power, measured by hash rates. This proactive approach positions them well to leverage the reduced competition following the halving. Conversely, smaller and less efficient miners might struggle, potentially leading to market consolidation and acquisition opportunities.

Overall, the completion of this halving event is a bullish indicator for the long-term prospects of Bitcoin, reinforcing its status as 'digital gold' and setting the stage for its continued adoption and price appreciation in the future.

Shift to Put Premiums in Cryptocurrency Options Market

• Defensive Market Shift: There is a noticeable trend towards increased demand for put premiums in the cryptocurrency options market, indicating a defensive strategy by investors, particularly with major cryptocurrencies like Bitcoin and Ethereum.
• Risk Hedging: The rise in put premium demand reflects investor caution, aimed at hedging against potential price drops amid high market volatility.
• Market Indicators: Increased trading volumes and cautious pricing on major cryptocurrencies suggest that many investors are using puts to protect against potential declines, influenced by factors like macroeconomic changes and anticipated regulatory shifts.
• Strategic Protection: The shift to put premiums is a strategic response to market uncertainty and bearish trading indicators, showing a broader trend of safeguarding investments.

$200k March 2025 Calls Indicate Strong Long-Term Market Sentiment

• Bullish Sentiment: Significant trade in $200,000 call options for March 2025 reflects strong investor confidence in Bitcoin's future price increase.
• Market Optimism: Driven by factors like the introduction of Bitcoin ETFs and positive regulatory developments, enhancing market confidence.
• Price Targets: Analysts and traders anticipate Bitcoin could reach or exceed $200,000, backed by technical indicators and historical market cycles.
• Strategic Investment: The trade indicates preparation for substantial price movements, seen as a strategic bet on Bitcoin's long-term growth potential.

Tether and Telegram Collaboration

• Partnership Announced: Tether teams up with TON Foundation to enable USDT payments on Telegram, aiming to transform the app into both a communication and financial platform.
• Strategic Goals: Integration targets Telegram's vast user base, especially in emerging markets, offering an efficient way to manage financial transactions through the app.
• Challenges and Scrutiny: Despite the potential, Telegram faces regulatory challenges and scrutiny over Tether's involvement in illicit activities and questions about its financial reserves.
• Financial Practices: Tether, known for conservative financial practices, contributes profits to reserves and investments in technology like AI and crypto mining.
• Regulatory Compliance: Tether collaborates with global law enforcement to comply with sanctions and regulatory requirements, including the ability to freeze assets when necessary.

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TOP ALT COINS OF THE WEEK

After the recent Bitcoin halving event on April 19, 2024, there's a notable quiet in the expected bullish activity for Bitcoin, yet some altcoins are showing signs of potential upward movement. 

Breakdown of the Top 5 Altcoins

$WIF (dogwifhat):

• WIF is a meme coin, which inherently carries a high risk.
• It has recently seen a significant price hike and increased social volume.
• The token surged by more than 25% after Binance announced it will list the token.
• The current price of WIF is $2.84 USD.

$PEPE:

• PEPE is another popular meme coin.
• Large market participants are buying up the meme coin even as prices dunk, suggesting another leg up might be on the cards soon.
• The current price of PEPE is $0.000005205 USD.
• There was a theft of 16 trillion PEPE tokens in the past.

$CORE:

• CORE has seen a significant increase in investor interest, surging nearly 300% in the last 30 days.
• The current price of CORE is $2.59 USD.
• It has a circulating supply of 882.44M coins.

$FET (Fetch.ai):

• FET, the native token of AI-focused Web3 platform Fetch.ai, will become ASI.
• The token has seen a significant price increase, with a 54% growth in the last week.
• The current price of FET is $1.93 USD.

$AR (Arweave):

• AR is associated with Arweave, a decentralized storage network.
• The token has seen a surge in price, with a 12.9% increase in the last 24 hours.
• The current price of AR is $33.45 USD.

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About Alvatix

Alvatix leverages Artificial Intelligence (AI) and Machine Learning (ML) to analyze market data, sentiment and more to offer AI-powered crypto trading tools and strategies.

Alvatix is actively engaged in educating the community through market analysis and providing insights such as on mastering market liquidity, the ETH ETF trajectory, and on Fundamental and Technical Analysis. This underscores Alvatix's dedication to innovation, education, and its mission of democratizing wealth through AI trading technology.

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*Disclaimer: This article is for informational purposes only and is not intended as financial or investment advice. Alvatix and its services are tools for crypto trading, and users should conduct their own due diligence and consult with a financial advisor before making investment decisions. Past performance of Alvatix's trading strategies is not indicative of future results.