Bitcoin and Ethereum Market Analysis – 23.03.2023

Over the past week, Bitcoin has seen fairly impressive growth. The total market cap of the crypto space has also added 8% – now sitting at $1.125tn. Bitcoin in particular seems to be in a bullish phase. Having struggled to break through resistance $25k since it dropped below it in June last year, BTC has smashed through it over the weekend to $28.19k at the time of writing. Good momentum on both daily and weekly charts.

Interest in Bitcoin futures has also risen. Uncertainty in the banking sector is making BTC an increasingly attractive asset for investors. Market sentiment on Bitcoin seems now to be markedly more positive than it was at the beginning of last year.

BTC daily chart shows the price action, holding up well after the tremendous move higher off the higher lows in the last seven days. BTC is back into the higher band of BB, well above the 10-day MA, and consolidating well for another move higher.

BTC looks fine with a shake-out of the lows of the last 4-year cycle. Still in the early portion of the 60-day cycle, I think the momentum seen so far will cover the back filling and make the move sustainable. BTC price action still needs to break the resistance in the $28-$29k area and I won’t be surprise to see a slight decline up to $25.5k level, but be rest assured that the long term projection is on the positive side.

A sustained breach of the psychologically important threshold could catalyze wide-scale capital inflows into BTC and consequently initiate a rapid surge in prices, putting Bitcoin en-route toward new historic highs.

Also, nothing will surprise me to see BTC hitting $34-$35k level in this 60-day cycle considering the volatility of the market and the uncertainty in the banking sector.

Meanwhile, a pullback can be bought for short-term trading.

Chart 1. Significant price action, holding up well after the tremendous move higher off the lows, and consolidating well.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live , BTCUSD Chart by TradingView

Looking at the BTC weekly chart we see 4 months of increases that have converted to a right translated cycle in this early 60-day cycle. I expect more upside possibilities in the rising portion of the new 60-day cycle.

A minor retreat wouldn’t be surprising given the significance of the hurdle at the $28-$29k level. Beyond the short term, BTC/USD needs to clear this key level to sustain the momentum and push to $34-$35k area before the end of this 60-day cycle.

Chart 2. 4 months of increases that have converted to a right translated cycle in this early 60-day cycle.
Source: bitcoin.live , BTCUSD Chart by TradingView

Ethereum/USD
ETH is showing positive signs and might rally towards $2,000. More gains could set the pace for a test of the $2,120 resistance zone in the near term.

Trending again in the right direction, well above the 10-day MA. Having held those lows and now gone up on a counter trend move, expect a retest of the $2k resistance. If this level is scaled on a closing basis, ETH/USD pair could soar higher.
There is a key bullish trend line forming with support at $1,780 on the hourly chart of ETH/USD.

Chart 3. Ethereum trending in the right direction, above the 10-day MA and showing positive signs which could lead to a rally towards $2k.
Source: bitcoin.live , ETHUSD Chart by TradingView