In March, the cryptocurrency market struggled with severe pressure from U.S. regulators, blockchain companies faced challenges interacting with the banking sector, and negative macroeconomic factors didn’t vanish, either. What predictions can be made regarding the state of the cryptocurrency market in April 2023? CP Media spoke to industry experts, who provided their opinions within this material, to give a more or less unbiased answer to this question.
Note: The information appearing here is for informational purposes only and does not contain investment advice or recommendations. All financial management decisions should be made based on your own analysis and consultations with professionals.
Global Prospects for Bitcoin in April
The dramatic events surrounding the collapse of several U.S. banks heightened interest in cryptocurrencies and services related to them. Moreover, interest increased among both investors and people who hadn’t previously delved deep into the topic.
“In mid-March, the number of transactions and new participants in Bitcoin increased. The current situation can be compared to the peak in popularity the first cryptocurrency had during the coronavirus pandemic. I’m sure this trend will intensify in April 2023,” says Alexander Visotsky, Founder of the business management platform Tonnus.
“In 2020, crypto investments raised skepticism. Now Bitcoin seems interesting, despite its high volatility, especially against the background of what’s happening in the banking industry. But to make financial decisions, you need to constantly improve your competence in the crypto field, even in a positive market environment,” Alexander shares his opinion.
Dmitry Noskov, Expert at StormGain, believes that in April, we may see the crypto market grow due to the additional issuance of fiat money by central banks of major countries to save the banking system. This process will inevitably lead to higher inflation. According to Dmitry, the first bells have already rung, and the factors leading to the current crisis are only getting stronger.
“We can’t rule out that there will be new bankruptcies in April. Yet, the decentralized nature of coins like Bitcoin makes them resilient to these kinds of shocks. And deflationary mechanisms stand in stark contrast to money being printed by central banks. However, it’s worth exercising caution when investing in Ethereum and other PoS coins. U.S. regulators intend to seek “security” status for these instruments. Besides, Ethereum is waiting to start unlocking staked coins in April. Their total volume is 17.8 million ETH, equivalent to ~$32 billion,” warns Dmitry Noskov.
Outlook for Bitcoin Based on Technical Analysis
“Since the beginning of 2023, the cryptocurrency market has been showing an aggressive upward movement. This uptrend was triggered by the accumulation phase, which could be observed in the date range from early November to late December 2022. Following this accumulation, a trend phase occurred, lasting more than 80 days. Bitcoin is moving up through successive consolidations, where each impulse is followed by a manipulation of the highs. In such areas, the institutional participant partially allocates its previously accumulated position,” says Denis Trapezenko, Trader and Analyst at Vekus Mining Development.
“After each local distribution, we can observe a growth correction and an aggressive continuation of the upward price formation. BTC is currently in the local distribution phase. After the downward correction movement on March 10, 2023, another low ($19,549) was formed. Next, we can see active growth where the bullish daily imbalance FVG 1D ($20,686-$21,813) on Binance and the price gap on CME ($20,3030-$21,110) were formed. They act as magnets.
In most cases, the price returns to the formed price gap to overlap it, due to the fact that inefficient pricing is present in this range. By analyzing the BTC dominance chart (orange line) and the altcoin dominance chart, except for the top 10 (blue line), it’s clear that the BTC dominance reaches the upper border of flat, while the altcoin dominance continues to fall. Normally, in such ranges, BTC is a flat stage, where the distribution phase is formed (exit from the asset), while altcoins have already reached the accumulation phase (accumulation of the asset), and active growth begins. Based on this data, we can assume the completion of the trend regarding BTC and the redistribution of funds into altcoins, which will lead them to an aggressive markup.
Judging by the current pricing, we can expect the completion of the BTC uptrend in the range from $24,500 to $30,000 in April 2023 and the beginning of a short-term bullish rally for altcoins,” sums up Denis Trapezenko.
Overall Situation on the Cryptocurrency Market in April
March was another strong month for the “King of Crypto,” though not without its difficulties. Vince Pellizzari, Trader at CoinsPaid, believes that BTC, like the TradFi markets generally, was spared from serious turmoil by intervention by various governments to “save the day” again…
Last month, the banking sector suffered its biggest meltdown since the 2008 crisis after the SVB’s bankruptcy infection spread and even hit Credit Suisse, the second-largest bank in Switzerland. To this day, the banking crisis seems to be “contained,” but at what cost?
“Nothing comes for free. These events have literally left the Fed with no choice but to take a step back in its quantitative tightening policy and increase its balance sheet by over $350 billion in an attempt to act as a lender of last resort to appease market participants and avoid further turmoil. Such measures are inflationary and certainly don’t help current efforts to rein in rampant global inflation. Despite the shift in the narrative of central banks on slowing inflation, what we saw last month was the return of disguised quantitative easing,” says Vince.
“Chancellor on Brink of Second Bailout for Banks” is a message on the Genesis Block of the Bitcoin network that helps piece together all the events that happened this month. It seems that this “Bitcoin prophecy” is coming true before our eyes. Governments can’t save the financial system from another collapse, all they can do is buy time through the rising inflation. Amid this backdrop, there’s more and more talk of gold, BTC, and other safe haven assets that serve as protection against inflation and printing money.
“The performance of gold and BTC last month proves that smart money is already trying to protect itself from the return of inflation with respective growth rates of 7.8% and 22.7%, respectively,” notes Vince Pellizzari, Trader at CoinsPaid.
In his opinion, the events of the coming months are predetermined: the inflation rate will rise, economic forecasts won’t bode well, all markets will slow down for objective reasons, and a global breakdown may occur at some point. But such an atmosphere is favorable for gold and BTC.
Globally, the crypto market in April 2023 is causing uncertainty and unrest among investors. Tatyana Bunegina, Founder and Owner of an investment real estate agency, also notes this. She points out that the market continues to battle for spheres of influence, however, it’s no longer healthy competition but an open game of global players. The U.S. Commodity Futures Trading Commission sued the world’s largest crypto exchange Binance and its CEO Changpeng Zhao, and the SEC is auditing Coinbase. All of this causes investors to distrust players who are part of the crypto industry themselves.
Nevertheless, despite the negative factors, cryptocurrencies remain of interest to many market participants. Governments also want to secure a piece of the digital economy, which is driving new projects and innovation in the market.
As to whether Bitcoin and altcoins will grow in April 2023, it’s too early to predict sustained and significant growth. There’s a strong correlation between the stock market and BTC prices, and as long as the recession remains in place, investigations and lawsuits against crypto companies will continue; while the need for a key rate hike in the U.S. persists, we can’t expect cryptocurrencies to grow globally. But that doesn’t mean there won’t be any increase at all. There’s always an opportunity to profit in the cryptocurrency market if you follow the news closely and analyze data about cryptocurrencies and the market in general. For example, short-term fluctuations in BTC and other cryptocurrencies can be caused by changes in legislation or decisions of major corporations to introduce crypto payments.
“It’s essential to remember that digital assets are tools to diversify an investment portfolio, which can be useful to reduce the risks associated with fluctuations in traditional financial markets. However, before investing in crypto, investors need to conduct their own research and assess risks and opportunities so that they can make well-informed decisions,” concludes Tatyana Bunegina.
