Weekly crypto market analysis from Geco.one 29.03.2021
Bitcoin’s prices rose by a modest 3 per cent over the past week, and Ethereum by just over 1 per cent. Looking at the charts of these two projects, however, you can see that there are pretty significant resistance levels on the way to their further appreciation, which may be a bit confusing in the coming days.
Looking at the oldest virtual currencies’ quotations, we will notice that the BTC quotes from the first half of March this year. They move inside a parallel downward channel, which is a kind of correction after earlier increases. Currently, this market is near the downward trend line, which is the upper limit of the channel. If this zone is rejected, soon we could expect a slight decline to around 53,600USD and measuring 50 per cent — Fibonacci corrections from an earlier upward move.
However, taking into account that in the area of the currently tested downward trend line, there has not been an above-average supply response so far, and it cannot rule out that the city of declines will soon see a strong upward impulse as a result of which will overcome the resistance. If that happened, we could expect to re-test around 62,000USD or break this resistance, which would mean reaching the highest level in the history of BTC.
The Ethereum quotations are also in the area of significant resistance. If this zone were to be rejected, the ETH price could drop to as much as 1,400USD. However, it is worth noting that even if it did, the overall market sentiment would remain the same, and the prevailing trend would still be an upward trend.
Analyzing the current situation on the ETH listings, we will see that even if the price of Ethereum fell to 1,400USD, the market would still be on the consolidation line between 1,400USD and 1,960USD. It is also worth noting that this particular consolidation is a form of correction after an earlier upward move. Therefore, it is more likely that the market will break out of it sooner or later, which could naturally open the way for further appreciation.
If, however, in the vicinity of the resistance currently tested, there was no greater supply response signalling its rejection and would overcome this zone, then we should expect direct increases in the vicinity of 1,960USD or higher.
Chainlink quotes are also quite similar, as the rate is currently testing the local resistance of 27.50USD. A permanent defeat of this zone could open the way to further increases in the vicinity of 32USD, or even further to 36USD.
However, taking into account that the currently tested resistance coincides with the measurement of 50%. Fibonacci correction from the earlier downward impulse would be worth pausing with the opening of long positions until the market permanently breaks this zone.
If the currently tested level is rejected, LINK’s quotations could drop below 25USD or even to 18USD.
Looking at the Cardano (ADA) quotes, we can see that this year resulted from March 26. declines, this market slumped to the area of previously defeated resistance of 1.1650USD and measuring 50 per cent. Fibonacci correction from the earlier upward move, where the first demand reaction appeared a few days ago.
Permanent rejection of this support zone could open the way for further increases; even around 1.45USD seems to be the whole range for the winders.