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Bitcoin and Ethereum Market Analysis – 25.03.2021

Bitcoin bounced off the $52,000 support, we view Bitcoin’s dip below $54,000 as another bullish buy-the-dip opportunity.

We may be expecting another leg down in the near term as Bitcoin price is still meeting strong sell pressure near a key trendline.

In other words, a bullish strength would be demonstrated with an increase in volume, which didn’t happen. Therefore, a correction back to $50,000 is a very normal, healthy occurrence for this market. These periods are consolidative and are needed for the market to find a new floor. In bull markets, bullish continuation is likely after these periods of ranging before another leg up can happen.

Bitcoin’s price has seen massive gains in recent months, accelerating from $11,000 to nearly $62,000. However, such impressive rallies also include relatively calm periods of price action.

If Bitcoin enters a deeper correction in the near term, several Altcoins like Ethereum are likely to follow, even though a handful of Altcoins were able to rally to new highs.

The BTC daily chart shows an apparent bullish cycle that’s constantly making higher highs and higher lows. Simply put, the price action of Bitcoin is still bullish despite the clear short-term downtrend. Yes, we have had an all-time high in mid-March but a correction to the $50,000 area would still be healthy, if not expected, as the $50,000 area is a massive support zone.

Even if Bitcoin’s price corrects further to the $44,000 area, the bullish construction is still valid, as these sideways ranges have been happening quite often since breaking the 2017 all-time high.

As long as Bitcoin stays above $44,000, and preferably $50,000, the bearish divergence will become invalid, as history has shown multiple examples of this. A bottom has to be made between $44,000 and $50,000 to avoid new lower lows.
 

Fig.1.Bitcoin:$50,000 area is a massive support zone that will determine the next line of action.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live

BTC weekly chart, shows some weakness, following through the RSI swing failure and OBV bull divergence, but still quite bullish as we have not even tested the weekly EMA 8 yet, and are starting to form hidden bullish divergence (continuation). I think anything near the MA 50 is a strong buy.

Fig2. Bitcoin: Despite RSI swing failure and OBV bull divergence, still bullish. Source: bitcoin.live

Ethereum
Ethereum’s chart looks good to me even with recent weakness. Though we did break that $1760 cluster, the RSI also is displaying divergence, and there is an absence of volume on this recent move, a rather violent one.

I still favor bulls.

Fig.3 Ethereum: Key areas to watch are the $1480 area support and $1750 area resistance. Source: bitcoin.live

Top Takeaways
$BTC MA 50 area support/ 57k resistance
$ETH $1480 area support/ $1750 area resistance

🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service


🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service