Bitcoin has given a highest single day return of 2023, Is it the start of the bull run or another trap?
Last week was full of uncertainties, causing more than 13% volatility in the market. Due to fear, Bitcoin (BTC) loses 13.38% on weekdays. However, the crypto market has started a quick recovery and gained over 20% in the last three days.
Today, bitcoin (BTC) pumped more than 12% in the daily time frame. This is the highest 1 day gain since September 2022.
The market is highly volatile as the bitcoin’s (BTC) price has stuck between the major moving averages. In this article, I will share a detailed analysis of Bitcoin (BTC), Ethereum (ETH), Crypto total market capitalization, and S&P500.
Weekly Price Analysis of Bitcoin (BTC)
Last week, Bitcoin (BTC) lost more than 13.38% of its value on weekdays. BTC was rejected from the resistance of $22600 and fell below $20000 for the first time in 2 months.
As discussed earlier last week, Bitcoin (BTC) tested the major support of 20 weekly moving at $19700. Bitcoin bounces from the 20 weekly moving average confirming that there was a lot of buyer waiting for BTC to buy at this price.
There was also the support of point of control (POC),
The Point Of Control is the most important area that the Volume Profile shows. It shows the price point where the heaviest institutional volumes got traded.
Currently, Bitcoin is hovering around $24000, Surged more than 20% in the last two days.
The major weekly support for bitcoin will remain at $19700, the area of 20 weekly moving averages.
However, there are two major resistances to bitcoin and both are very important to keep eye on. First, the 50 weekly moving average, which is at $23000 today, Closing a week above the 50 weekly moving average means bitcoin has tested the bottom and the market is in the bull run now, and second 200 weekly moving average.
Historically, the 200 weekly MA worked as the bottom for a bear market. However, this time BTC falls below the 200 weekly MA and trying to reclaim it. At the time of writing the 200 weekly MA is at $25600.
Crypto Total Market Cap
The crypto total market tested the 20 weekly moving at $900 billion. The crypto total market cap has surged by $103 billion in the last 3 days.
The crypto total market cap crossed 1 trillion dollars on Monday. Currently hovering around 1.04 trillion.
Although the bitcoin is below the 50-month moving average, the Crypto total market cap has successfully tested the 50 monthly MA and bounced from here.
Ethereum (ETH) Price Analysis
Ethereum, the second largest crypto by market cap tested the 20 weekly MA support at $1360 last week. ETH bounced from the support and now testing the resistance at $1670.
ETH value surged 20% in the last two days. ETH is forming an ascending triangle pattern which mostly breaks upside.
If it breaks upside then ETH will test the next resistance of $2000 within the next two weeks.
The Major support for ETH will remain at $1060.
SPX (S&P500)
Last week, the S&P500 index closes -at 4.55%, and the S&P500 index opened at 4074 and closed at 3861. S&P500 is up 0.78% today. The S&P500 is trying to hold at the weekly support of 3840.
The S&P500 will be positive in the coming weeks as long as it is holding above the weekly support.
Unfortunately, The S&P500 has closed last week below the important weekly moving averages. The index is below the 20-50 weekly MA.
The positive side is that the index is going through the bullish crossover of the 20-50 weekly MA that will happen in the running week. After this, the S&P500 closing above the 20 weekly MA will turn the Market bullish.
Image From: Tradingview and iStock. https://cryptonewsbytes.com/wp-content/uploads/2023/03/download.jpg
*Disclaimer: All views expressed in this article is for educational purposes only and should not be constituted as financial advice.
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