After a month of bullish activity, the broader cryptocurrency market is stabilizing as the week draws to a close. Major currencies such as Bitcoin and Ethereum are showing relatively flat prices, reflecting the recent halt in their upward momentum.
However, AI-linked tokens are still going strong, driven by the current momentum within the AI industry, which is leading to increasing investor interest and activity in related digital assets.
In fact, tradfi stocks related to AI technology are all on the rise after Nvidia’s blockbuster earnings report this week. Nasdaq’s NVDA, AMD, and MSFT are all in the green for the week. Nvidia called this a “tipping point” for AI.
Bitcoin’s current market position
Bitcoin opened the day at $51,252 but fell slightly to around $51,134, down just under 1% over the past 24 hours. These moves highlight a consistent trading period since February 15th. decryption It has been reported previously.
The cryptocurrency’s current position is below the EMA10 mark (average price over the past 10 days), raising concerns about a strong correction. Ending the day below this important threshold could suggest that bears are gaining a foothold in the market.
Some market indicators suggest that a correction may already be underway.
RSI, a gauge of the strength of bulls against bears in the market, was previously at a very high 80 points (meaning 8 out of 10 traders were buying) but has now fallen to 66 points. Although still high, this decline suggests a shift towards more balanced market dynamics and shows that traders are not as enthusiastic about BTC as they were just a few days ago.
The convergence of Bitcoin’s EMA10 and EMA55 indicates that the gap between short-term and long-term buying performance is narrowing. This trend suggests a cooling off period where recent buyers (those who bought BTC in the last 10 days) are not seeing the same returns as those who entered the market earlier (in the last 55 days). It also explains why RSI is falling.
If this correction continues and EMA55 moves above EMA10, it could mean that the correction turns into a bearish trend and new buyers may incur losses.
The market is currently weighing the potential impact of the recent spot ETF approval and the upcoming Bitcoin halving. Halvings have historically impacted the value of Bitcoin, sparking major bullish gains every four years and could play a significant role in shaping future market trends.
Market dynamics of Ethereum
Ethereum opened at $2,970 but is down 1.4%, with the price adjusted to $2,947 at the time of this report. This movement reflects a stronger intraday decline compared to Bitcoin.
Despite a stronger bullish trend earlier, Ethereum failed to maintain its momentum this week. The emergence of a doji candlestick during yesterday’s trading session indicates a potential change in market dynamics.
The Doji descriptor is used when the candlestick is flat and has no body. This means that the price does not move during the session. Yesterday, ETH started the day at $2,967 and ended the day at $2,968, indicating indecision among traders.
This pattern indicates a balance between buyers and sellers, with neither side gaining significant ground, and suggests that Ethereum’s dominant bullish trend may be weakening.
However, Ethereum’s weekly performance remains positive, with a 6% increase over the past seven days. However, this growth is modest compared to the significant increases seen in previous weeks. It soared 14.89% last week.
The observed slowdown in Ethereum’s value growth suggests the possibility of a minor correction. Since altcoins often follow the lead of flagship cryptocurrencies, these adjustments may be influenced by Bitcoin market movements.
For long-term Ethereum holders, current market conditions remain optimistic. Despite the possibility of a short-term correction, the overall trend supports holding the coin for now.
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