Key Takeaways
- BTC is set to test USD7000-7200 levels after sideways trading over the weekend.
- The recent hash rate collapse could strengthen the bulls, while other data suggests investors have been overconfident.
- Short/medium-term price volatility is set to pick up in major altcoins.
Market Overview
It has apparently a mixed start for the cryptocurrency market, as the prices of BTC have been trading sideways between the USD6600 area and USD7200 levels over the weekend without significant breakthroughs.
At the time that bitcoin block reward halving is expected to happen in less than 40 days, the short-term sentiment over the leading crypto remained relatively low, despite the recent market recovery. Sentix Bitcoin Strategic Bias, which gauges six-month expectations of BTC investors, rebounded sharply last week. However, Manfred Hubner, Managing Director at Sentix, pointed out that, “the Overconfidence Index (not shown here) has been trading at +5, which is more in a zone that speaks for too much self-confidence on the part of investors. So, there is no clear positive indication for rising bitcoin prices.”
Source: Sentix
Source: Woobull Charts
Even so, fundamentals seem to suggest that BTC prices may have bottomed. Prominent bitcoin analyst Willy Woo tweeted that, the recent collapse of the Hash Ribbons indicated some miner capitulations happened during the March 12 market crash, and he believes that miners won’t be adding more sell pressure from here.
Elsewhere, it has been a mixed bag, with BSV traded about 1% lower, while TRX gained more than 7%. MKR remained in focus, as Maker Foundation is set to be dissolved in order to go fully decentralized, the move is part of the efforts of creating a self-sustaining MakerDAO. MRK traded 7% lowered in Asia Monday.
BCH watchers also don’t want to miss the block reward halving, which is expected to take place on April 8. BCH miners’ reward will go from 12.5 BCH to 6.25 BCH per block. BCH traded half of a percent lower in the Monday session.
Price Analysis: BTCUSD – Neckline resistance in focus
BTCUSD has been recovering from the March 12 selloff, and it seems approaching the 61.8% Fibonacci Retracement, where it’s close to the neckline of the previous neck and shoulders pattern.
Momentum-wise, it has been kind of mixed, but the bias seems slightly toward the positive side, with the RSI has been creating some higher highs, while the UO has been producing some lower highs. However, a small breakout in the OBV seems in the making, if confirmed, it could increase the likelihood of the bullish case.
It's worth noting that a small golden cross is also in the making, with the 100-MA slightly above the 200-MA.
Although the retest of the 61.8% FR is likely in the near-term, however, we believe the neckline resistance near USD7200 to 7300 could still be healthy.
Source: FX Street
ETHUSD – a breakout is expected
ETHUSD has formed an ascending triangle pattern, and a breakout in the short-term seems imminent. The squeeze of the Bollinger Bands also indicates the price volatility is expected to be increased.
The RSI and the OBV both produced positive breakouts, suggesting the buying momentum of the pair has been increasing, which strengthened the case of having a decisive breakout of the price.
The first level to watch could be the 200-MA at around 172, while the lower support near 120 is another key area.
Source: FX Street
ATOMUSDT – a new trend in development?
ATOMUSDT has initially jumped above the Feb-March trendline resistance with strong momentum, as the RSI has produced a clear breakout.
While the price may be standing above the trendline, the Bollinger Bands squeeze suggests that the price volatility could increase from here.
The initial reversal of the OBV suggests that the buying momentum has picked up, a further increase of the upside momentum could allow the price to start a new medium-term trend from this point.
The March 20 high of 2.48 could be the first level to watch.
Source: OKEx; Tradingview
This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involves significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
Recommended Content
Editors’ Picks
![Ethereum has lost its “ultra” sound money status, faces key rectangle resistance hurdle](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Ethereum/Ethereum_Coins_31_03_XtraSmall.jpg)
Ethereum has lost its “ultra” sound money status, faces key rectangle resistance hurdle
Ethereum is up 0.5% on Thursday following a recent analysis showing that the top altcoin lost its "ultra" sound money narrative. Meanwhile, ETH ETFs recorded net inflows for the first time after nine days of consecutive outflows.
![Solana bears dominate market as SunPump has potentially led to less demand for SOL](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Solana/Solana_Crypto_31_XtraSmall.jpg)
Solana bears dominate market as SunPump has potentially led to less demand for SOL
Solana is down 2.5% on Thursday following bearish signals across its funding rate and total fees captured. SOL's weak performance could also be linked to the declining traction seen in its meme coin generation platform Pump.fun.
![AI tokens see narrow gains as Wall Street banks raise price targets on NVDA](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/PEPE/PEPE_coin_2_XtraSmall.jpg)
AI tokens see narrow gains as Wall Street banks raise price targets on NVDA
AI tokens NEAR, ICP, RENDER and TAO briefly traded in the green on Thursday following Wall Street banks' positivity toward Nvidia's earnings report. While a correction followed, these tokens could rally if NVDA meets expectations.
![XRP back above $0.57 even as Ripple traders take $8 million in profits](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/cryptos_XtraSmall.jpg)
XRP back above $0.57 even as Ripple traders take $8 million in profits
Ripple (XRP) traders have consistently taken profits on their holdings in the last two weeks, per Santiment data. Once again, traders have grabbed $8.36 million in profit so far on Thursday. Typically, profit-taking negatively influences the asset as it increases the selling pressure.
![Bitcoin: Will BTC continue its ongoing decline?](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin_5_XtraSmall.jpg)
Bitcoin: Will BTC continue its ongoing decline?
Bitcoin (BTC) trades above $59,000 on Friday, but it has lost 7.5% this week so far after being rejected around the daily resistance of $65,000. The decline is supported by lower demand from the US spot Bitcoin ETFs, which registered a net outflow of $103.8 million, falling Bitcoin's Coinbase Premium Index, and a spike in Network Realized Profit/Loss. However, some investors seem to be taking the chance to buy BTC amid this price dip, as shown by the Exchange Netflow data.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.