After a month of bullish activity, the broader cryptocurrency market is recovering as the week draws to a close. Major currencies like Bitcoin and Ethereum are trading relatively flat, indicating a pause in recent upward momentum.
Artificial intelligence tokens are still gaining traction, but are being fueled by the current momentum in the AI industry, which is fueling investor interest and activity in related digital assets.
Indeed, after Nvidia's blockbuster earnings report this week, AI tech-related tradfi stocks are on the rise: NVDA, AMD and MSFT on the Nasdaq are all green for the week. Navia called it an “important point” for AIA.
Bitcoin opened the day at $51,252 but fell slightly to $51,134, down 1% in the last 24 hours. This activity marks a consistent trading period since February 15, as previously reported by Decrypt.
The cryptocurrency's current position below the EMA10 mark (the average price of the last 10 days) worries about a strong correction. Closing the day below this critical threshold may indicate that bearish forces are gaining ground in the market.
Some market indicators indicate that a correction is already underway.
The RSI, which measures the strength of the bulls in the market – was previously at a record high of 80 points (meaning 8 out of 10 traders were buying) but has fallen to 66 points. Although it is still high, this reduction indicates a shift to balanced market dynamics and shows that traders are not as crazy about BTC as they were a few days ago.
The convergence of Bitcoin EMA10 and EMA55 suggests a narrowing of the gap between short-term and long-term buying performance. This trend suggests a cooling where recent buyers (who bought BTC within the last 10 days) are not seeing the same returns as those who entered the market earlier (within the last 55 days). It also explains why the RSI is declining.
If this correction continues and the EMA55 crosses above the EMA10, it means that the correction may turn into a bearish trend that will lead to new buyers taking losses.
The current market is weighing the effects of recent spot ETF approvals and the upcoming Bitcoin halving. Halvings have historically had an impact on Bitcoin's value, leading to major bull runs every four years, and could play a significant role in shaping future market trends.
Ethereum market volatility
Ethereum opened the day at $2,970 but experienced a 1.4% decline, with the price correcting to $2,947 at the time of this report. This move represents a strong intraday decline compared to Bitcoin.
Despite the previous strong bullish trend, Ethereum did not maintain its momentum this week. The emergence of a doji candle during yesterday's trading session indicates a possible change in market dynamics.
The doji indicator is used when the candlestick is flat and has no body – in other words, the price does not move during the session. Yesterday, ETH started the day at $2,967 and ended at $2,968, indicating a lack of decision among traders.
This pattern indicates a balance between buyers and sellers, which both sides have not gained significant ground, and suggests that Ethereum's main bullish trend may be weakening.
Ethereum's weekly performance remains positive, however, with a 6% gain over the past seven days. However, this growth is modest compared to the sharp increases seen in previous weeks. Last week it showed an increase of 14.89%.
The slowdown in Ethereum's price growth suggests that it has the potential for minor corrections. These adjustments can affect Bitcoin market movements, as altcoins often lead the mainstream cryptocurrency.
For long-time Ethereum owners, the current market situation still offers an optimistic outlook. Despite the short-term corrections, the overall trend favors holding the coin – for now.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and are not financial, investment or other advice.
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