Bitcoin Update:
The week for bitcoin began with growth. The price rose to $42,325 from $37,777. On Monday, the growth of quotations kept the level of $39,947. Buyers did not show aggressive purchases due to the negative news from China and the fall of Asian stock indices.
China has recorded a sharp jump in the incidence of COVID-19. Authorities have quarantined 17.5 million residents of the southern city of Shenzhen.
Increased volatility in the crypto market was observed on Wednesday (March 16). Market participants were nervous in anticipation of the announcement of the results of the US Federal Reserve meeting. The Fed raised the federal funds rate by 0.25%, as expected. FOMC members voted in favor of the raise with an 8–1 score. At the end of the year, six more increases of 25 basis points are expected at each meeting. The Fed is set to start cutting its $8.9 trillion balance sheet at one of its upcoming meetings.
On Friday, the price rose to $42,325. Buyers updated the weekly maximum against the backdrop of rising US indices.
For the week, major currencies showed growth of more than 1%. One Japanese yen fell in price. The dollar/yen rally indicates increased risk appetite as markets factored in three US Fed rate hikes. American indices began to actively recover after an 11-week fall. Cryptocurrency has been depreciating the same amount against the dollar over time.
At the time of writing, Bitcoin is worth $40,925. The price remains in the range of February 24 - March 2 or between $34,322 - $45,400. Buyers can safely move north to the $45,500 level. A confident breakdown of $46,000 is needed to continue the rally. If it fails, we are waiting for the price to quickly move to $52,000. And the $51,000 level (strong resistance) is 50% of the fall from $69,000 to $32,917.
As the price range narrows, the $44,500 level needs to be watched. Near it, buyers can start taking profits, and sellers can open short positions.
On Monday, 21 March Bitcoin has finally made an impulsive move that the upside that the whole market was waiting for over the weekend. The bulls took control over price actions and took the price past the diagonal trouble area around $42,200-42,400, all the way to $43,375 on Binance.
All Technical Indicators Indicate this is only the beginning of this rally as RSI has only crossed 50 level on 4 hour chart, therefore indicating there's still left momentum behind this move.
Therefore, $42,200-42,400 Test from above would be ideal to add to existing buy position or start a new one. Or once $43,500 has been secured by the bulls from there onwards there will be a quick and easy ride towards the key liquidity area at $46,000. If that fails to hold a quick rally towards $48,500 is still in cards.
Overall the Crypto market is looking very bullish and fading those rallies hold huge opportunity costs. Below is the Crypto total Market Cap chart - as you can see the consolidation that was going on from the start of February has been broken to the upside - signal that the crypto market is ready for expansion.
Such Break outs should not be ignored as opportunity costs are high, as Technically market should move up at least +12% to the upside. This means that smaller Alt Coins may do much stronger moves to the upside ranging from +20 to +30% in the upcoming weeks. Do not miss out on these.
