Markets have been relatively indecisive in April.
Not all coins have suffered the same, though.
VET is up 48% so far this month, including 10% today.
But overall, the crypto market has been sideways as next week’s Coinbase IPO looms in the background.
In today’s newsletter, we’ll discuss what another rotation lower might look like, as well as what needs to happen to turn cryptos higher again.
Let’s get it!
Crypto Market Cap
The total crypto market cap chart continues to churn higher.
It’s experienced a few corrections so far this year, including the one in mid-January and two in late February and March.
The crypto market has bounced back every time.
However, the rallies are getting shallower, and buyers appear to be running out of gas.
That doesn’t mean a correction is imminent, but it does hint at some overextension that shouldn’t be ignored.
For now, $2T is resistance, with support coming in near $1.7T.
Bitcoin is coming off the top of a descending channel from April 1st.
Whether we see BTCUSDT breakdown for one more leg lower or clear channel resistance is anyone’s guess.
One thing that has left me hesitant is the lack of volume.
Volume has been relatively light for BTC and even ETH since the start of April.
In fact, it’s trended lower since the start of 2021.
That can change, but for now, the lack of volume is concerning.
If we see BTC clear ascending channel support near $57,700, we could see another test of $57,000, and perhaps even $55,600.
Below that is the CME gap at $54,000.
Alternatively, a close above the $58,800 area should send Bitcoin back to $60,000.
Ethereum is in a similar situation to that of Bitcoin.
Since the start of April, ETHUSDT has trended lower within a descending channel.
The market retested the top of the structure at $2,100 on Friday.
ETHUSDT needs to clear channel resistance just below that $2,100 mark to revisit the all-time high at $2,150.
On the other hand, a rotation lower would likely find support near $2,000, followed by $1,930.
The latter is the support area I talked about at length on Twitter recently.
VET has been on an absolute tear recently.
It’s up 50% against the USD in April alone.
It’s also gained considerably against both BTC and ETH.
Friday’s VETUSDT rally has the market testing the top of a channel that extends from the March high.
The upper level comes in just below $0.13.
If VETUSDT can close today above that mark, we could see a continuation of this rally on Saturday.
Alternatively, a daily close at 8 pm EST back below $0.1285 would suggest the level remains intact as resistance.
Key support for VETUSDT includes $0.118, $0.112, and $0.105.
As I’ve mentioned a few times on Twitter recently, I think VETUSDT has the potential to reach $0.15+ in April.