Crypto Markets Cautiously Recover, Bitcoin Leads with Measured Rally

Crypto prices are showing signs of recovery after a major slump, with Bitcoin initiating a slow recovery. Ethereum remains in the red despite Bitcoin's halving, while Ethena and Dogwifhat continue to showcase losses. However, CORE has surged 9%, potentially indicating a shift in market sentiment.

Cryptocurrency Markets Exhibit Tentative Recovery, Led by Bitcoin

After a steep downturn, cryptocurrency markets are cautiously regaining their footing, with Bitcoin (BTC) spearheading a measured rally. While major altcoins like Ethereum (ETH) continue to endure losses, selective altcoins have shown signs of stability or modest growth.

Ethereum Remains Subdued, Market Cap Inches Higher

Ethereum, the dominant altcoin, currently trades around $3,210, gradually recovering from a dip below $3,000 last week. ETH's price action exerts a significant influence on other altcoins. On April 22, the Total3 market capitalization experienced a slight increase of 2.18%.

Bitcoin Halving Impact Remains Uncertain

The long-anticipated Bitcoin halving event, which reduces the issuance of new BTC, materialized on April 20. This significant on-chain event is expected to induce a supply shock, potentially exerting upward pressure on Bitcoin's price. However, analysts caution that the halving's impact may have been largely factored into market expectations.

Economic Indicators Dampen Risk Appetite

Recent economic data, including retail sales figures and the Consumer Price Index (CPI) for March, have tempered expectations of aggressive interest rate hikes. The resulting negative sentiment has triggered a sell-off in risk assets, including Bitcoin and stocks.

Ethena (ENA) Regains Above $1

Ethena, the native token of the eponymous DeFi protocol, has been trending downward. However, ENA recovered from a dip below $0.90 last week and currently hovers around $1.07. A daily candle closure below $0.865, however, could indicate a bearish shift.

Dogwifhat (WIF) Targets $3.50

The bearish sentiment has also affected memecoins, with the popular WIF token plunging over 38% from its peak. At present, Dogwifhat trades at $2.97, having declined 5.82% over the past 24 hours. A critical support level lies at $2.75, which must hold to avert further losses.

CORE DAO Retests $2.50 Resistance

CORE DAO's native cryptocurrency, CORE, has rebounded after a sharp drop last week. After reaching a low of $1.09, CORE has rallied almost 140%. Currently, the digital asset is retesting its $2.50 resistance level. A failure to reclaim this resistance area on the daily timeframe could signal potential bearish continuation.

Conclusion

While cryptocurrency markets are exhibiting tentative signs of recovery, caution remains warranted. The impact of the Bitcoin halving remains uncertain, and economic indicators continue to influence risk appetite. Selective altcoins may offer opportunities for traders, but meticulous risk management is essential. As always, investors are advised to conduct their own research and consult financial professionals before making any investment decisions.