Cryptocurrencies: April Fools´rally?

April Fools´ prank (the most popular spoof yesterday was that the SEC has approved Bitcoin ETFs) or beginning of a recovery rally? That is a question many cryptocurrency investors and speculators are asking themselves now. Let us have a look at the charts.

BTC/USD

* Bitcoin has reached an intraday high of almost $5100 today - a gain of more than 20 % on the day

* The cryptocurrency has retraced somewhat, but traders are asking themselves if this is the start of a proper recovery or merely a short-term rally driven by speculators covering their short positions

* BTC bulls have been struggling in recent months as interest in cryptocurrencies has been declining steadily, along with trading volumes

* The charts suggest the broad downtrend is still intact

* Heavy resistance is seen ahead of the $5200-5300 area - where the 38.2 % Fibo of the July-December decline and the 200 DMA are resting

* To the downside, support is seen at $4400-4450 - a former area of major resistance

* Bitcoin bulls would need a daily close above $5000 to regain some confidence

BTCUSD
BTCUSD

ETH/USD

* In Ethereum, traders will be keeping a close eye on the $161 level, which acted as key level of resistance several times in the past

* A daily close above that level may potentially help ETH/USD to regain some momentum following a prolonged period of consolidation

* The next major area to watch would then be $213-223 (November 2018 high + 200 DMA)

ETHUSD
ETHUSD

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