Crypto Market Outlook, March 2021
Cryptocurrency prices were wobbly last week, both BTC and ETH closing down multiple percentage points. But continuing the recovery that began at the end of last week, both trading pairs are starting this week with a spark.
This pair has just broken a medium-term trend line that formed from the previous ATH. If the bulls can make sure the trading pair closes above this level, it will be a great start to the week.
From there, the only resistance in front of all-time highs is $60k. Ten handles down from that level is the swing low that needs to be watched if this breakout eventually fails.
There is a similar story here, except the trend line, didn’t start from the ATH. If the bulls can keep the upward momentum going, $20k is next in line. But this will prove to be a tough level to break.
On the downside, $15.5k is the level that needs to hold to keep this chart bullish.
Last week saw a corrective move for BTCUSD and ETHUSD, the pairs closing down -2.75% and -3.50% respectively.
This week should paint a clearer picture as to whether the correction has the chance of developing into a bear market, or if the long-term uptrend will continue.
This trading pair took out a large swing low under $56.3k over the weekend, liquidating a lot of longs. Cryptocurrency prices eventually shot back up and the retest during Asian hours held.
Now prices are printing higher highs and the large offers at $60k could be next. Otherwise, a retest of the swing low and large bids at $55.5k could be on the cards.
In an attempt at correlation decoupling, ETH went the opposite way over the weekend and penetrated a swing high at $18.5k. But buyers exhausted and prices fell back down to the low of the previous range, the large offers again accumulating at the breakout level.
$17.5k is a large level for bids, and $17.2k is a swing low.
Last week saw more all-time highs for BTCUSD up to nearly $62,000 on some crypto exchanges. ETH also made higher highs but is still trading 5% below its ATHs.
The pair kicks off the week by falling heavily, down nearly -6% on the day so far.
$55k is already acting as support and it is vital to see how the level reacts to any retest. $58.5k is likely to be temporary resistance if prices rise from here.
The 1730 level is support for this pair, and large bids are already forming just above. The 1848 support-turned-resistance could keep a lid on the action in the medium-term.
The week prior was a consolidation period, both BTC and ETH unable to decisively break out in either direction against the USD during traditional market trading hours. Hopefully, things will become more clear as the supply and demand levels materialize, potentially paving way for a big move.
A few hundred dollars under the large offers at @ $52k is the last swing high on a higher timeframe. If buyers can break out here, there isn’t much significant resistance until the last printed ATH around $58k.
The swing low is around $49.3k. This level flipped from resistance to support and buyers recently came in before it could even be tested. If it breaks and flips back to resistance, the stops likely to be waiting under $47.2k, and $46.5k will be the next target.
This crypto pair broke a swing high above $1.65k over the weekend and flipped a smaller resistance level into support @ $1,6850. Since ETH has broken a significant swing high while BTC remains suppressed, it could be the start of another period of outperformance for ETHBTC.
It remains to be seen whether BTC can catch up or if it will drag ETH down with it.
Last week was corrective for the price, both ETH and BTC closing down over -20% vs the USD. If the fall follows through this week, it could be the start of a bear market. Otherwise, it probably was just a healthy correction in the bull market.
Let’s take a look at what the charts are saying at the beginning of this week.
The $45k swing low was broken multiple times last week, but sellers never managed to follow through which is a bullish sign. There are always buyers willing to buy the dip on these pullbacks, but even when the large sellers managed to eat through their bids, they still lacked the conviction to take it further.
The battle of supply and demand is on as price approaches the $48.5k level — an area of previous support and then resistance. There are likely to be many stops above the level, and if buyers can push through, it may be the start of another gun for more ATHs.
It was the same story for ETHUSD, except this pair seems to quite decisively break its $1.4k swing low, the area temporarily becoming a resistance level.
But early this morning during Asian hours, the pair managed to break back out through and absorb large sellers that wanted to retest the level.
The area around $1.55k is one to watch. As with BTCUSD, a strong breakthrough this swing high could be the continuation of the crypto bull market.