Bitcoin staged a strong rebound and is now hovering near the $78,000 level after a dramatic sell-off over the weekend. The drop below the psychological $80K mark came right after US stock futures opened sharply lower on April 6, dragging BTC to a new year-to-date low of $74,508 on April 7. But that dip was met with aggressive buying as bulls stepped in to defend the zone.

The wider macro environment remains bearish, with the US stock market’s Fear & Greed Index plunging to just 4 out of 100 a level that usually signals capitulation. This kind of panic often sets the stage for a bottom, where weaker hands exit and strong hands start loading up. A fast recovery could follow, but given the high volatility, it’s smart to stay cautious and avoid going heavy on leverage right now.

Bitcoin dipped below the key $76,606 support level on April 7, but buyers stepped in around $73,777, as shown by the long wick on the daily candle. The RSI is flashing a bullish divergence, hinting that bearish pressure might be easing, but that alone isn’t enough to flip sentiment—it needs confirmation with a breakout. If BTC breaks and closes above the descending resistance line, it could mark the end of the correction and open the doors for a run toward $89,000 and even $95,000.

On the flip side, if bulls fail to break resistance and price gets rejected, it means the bears are still in control. A drop below $73,777 could trigger a sharp sell-off, dragging BTC down to the $67,000 zone. Ether continued its downward slide on April 6 after breaching the $1,754 support. The fact that it didn’t bounce off $1,550 shows bulls are not stepping in with conviction. The RSI is now in oversold territory, which suggests a short-term relief rally might be brewing.

If ETH starts to recover from current levels, a move back to $1,754 is possible. However, if the bounce stalls around that level, it would signal that bears are selling into strength. That could increase the risk of a deeper drop toward $1,350 and even $1,150. For bulls to regain control, they need to push ETH above the 20-day EMA, which currently sits at $1,853—only then could we start talking about a trend reversal. 

Lastly please check out the advancement’s happening in the cryptocurrency world

Enjoy the issue!