Yet Another ATH for Bitcoin, Euphoria Intensifies – Analysis, 15 Mar
Last week the market cap of Bitcoin surpassed $1 trillion once again. The price of the cryptocurrency marked another all-time high at a level of approximately $62,000 per digital coin and intensified the euphoria in the crypto market. According to Bloqport, the crypto trading volume on Korean cryptocurrency exchanges has surpassed the trading volume on the Korean Stock Exchange:
Many cryptocurrency enthusiasts started to claim that sooner or later, the crypto market will also become larger than the US stock market. Michael Novogratz, the founder of cryptocurrency investment firm Galaxy Digital and well-known Bitcoin bull, stated in a recent interview on Bloomberg that decentralized exchanges (DEXs) like Uniswap will ‘eat the lunch’ of the centralized exchanges like New York Stock Exchange (NYSE), Nasdaq, etc.
Another proof that investors are switching from the stock market to cryptocurrency is the recent announcement of Goldman Sachs that they are exploring how to meet ‘rising’ customer demand for cryptocurrency, according to Reuters.
Although this past week was highly beneficial for the crypto market, the Monday market starts with a decent price correction. At the time of writing, according to Coin360.com, one Bitcoin costs €48,281.89 (-5.57%), one Ethereum – €1,497.97 (-6.12%), and one LINK – €23.02 (-7.36%):
Source: Coin360.com (Daily crypto market performance)
Now let us analyze the price charts of the leading cryptocurrencies against the euro in the major time frames.
In the weekly chart (1W), BTC/EUR formed another bullish candlestick:
As can be seen from the chart, the last two candlesticks are bullish ones. Moreover, together they were able to cover the body of the bearish candlestick. Therefore, the negative signal from the Bearish Engulfing was completely revoked. As a result, the market sentiment in the weekly time frame remains bullish. Most traders will continue to open long trades. To spot the right entry point, they will use the shorter time frames.
In the daily time frame (1D), at the moment, BTC/EUR is experiencing a slight price correction:
Nevertheless, the price chart of Bitcoin remains within the trajectory of the Ascending channel (uptrend).
We think that BTC/EUR will receive support at the lower line (trend line) of the channel, where the 30-day Moving Average is also located. After that, the chances are very high that BTC/EUR bounces off the support line and resumes the uptrend. In case of such a price rebound, traders will start to enter the market.
It seems that in the 4-hour chart (4H), ETH/EUR is forming a Rising Broadening Wedge – a bullish technical pattern:
According to the chart, ETH/EUR is consolidating at the 30-day Moving Average at the moment. However, we think that ETH/EUR can experience a small correction, taking the price down to the lower line of the wedge (support line). After that, we expect something similar to what we explained in the daily chart of Bitcoin to take place here as well: ETH/EUR will probably receive support at the trend line, rebound, and renew the uptrend.
Today, we will extend our previous analysis of LINK/EUR in the 4-hour chart (4H). Last Monday, we outlined the Bullish Flag in the price chart of Chainlink:
According to the chart, LINK/EUR has already exited the flag and formed a local high outside. Last time we marked this as a potential first step. Now, the price of the cryptocurrency is declining and testing the upper line of the flag. It corresponds to the second step of our strategy outlined in our previous analysis. If the price bounces off the upper line of the flag, it will mark the beginning of the third step. In case LINK surpasses the previous local high (at the level of approximately €26.85), traders will start opening long positions (step 4).
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The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex's content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.