Bitcoin, BTC to USD, rose by 2.89% on Saturday. Following on from a 0.04% gain on Friday, Bitcoin ended the day at $59,812.0.
A mixed start to the day saw Bitcoin fall to an early morning intraday low $57,900.0 before making a move.
Steering clear of the first major support level at $57,602, Bitcoin rallied to an early morning intraday high $61,243.0.
Bitcoin broke through the day’s major resistance levels to come within range of the March swing hi $61,699.0 before hitting reverse.
The reversal saw Bitcoin slide back to sub-$58,500 levels before finding support.
Bitcoin broke back through the first major resistance level at $58,777 and the second major resistance level at $59,420 to end the day at $59,800 levels.
The near-term bullish trend remained intact supported by the latest move back through to $61,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $26,041 to form a near-term bearish trend.
The Rest of the Pack
Across the rest of the majors, it was a mixed day on Saturday.
Polkadot fell by 0.88% to buck the trend on the day.
It was a bullish day for the rest of the majors, however.
While Bitcoin remains within 5% of its all-time highs, showing some remarkable price stability, BTC futures did close slightly lower by almost 2%, bringing the price of April futures to $58,695.
One of these sources is the financial media giant Bloomberg. On Tuesday, the outlet published a report on the most likely outcomes for the second quarter, this summary of which reads, “A more likely 2Q scenario is to breach $60,000 resistance and head toward $80,000. A backup toward $40,000 support is less likely, in our view.”
The innermost circle of the Bitcoin community, the beating heart of the blockchain, its miners, have recently been hoarding their earnings of new BTC rather than selling them as fast as they produce them minors have been accumulating their stashes of it. This suggests that many miners are expecting higher prices within the near future and therefore not immediately liquidating in expectations of higher returns down the line rather than diminished prices.
Thermo cap is a ratio that measures the collective block rewards miners have earned since the genesis of a blockchain. An article published in Yahoo Finance by Valdrin Tahiri utilized data from Glassnode and the market cap/Thermo cap ratio to conclude that BTC’s rally is nowhere near its conclusion point.
An exciting ratio that has so far correctly predicted the two previous market tops is the MC/TC ratio. It simply divides these two values to find a ratio that can be used to assess whether the BTC price is trading at a premium regarding the rewards paid to miners.
“In 2011, 2013, and 2017 price peaks, the MC/TC ratio also reached a peak in overbought territory, which is designated as the area above 0.000004 (highlighted in red). During the 2011 peak, MC/TC was at 0.00000595, in 2013 it was at 0.00000491, while in 2017 it was at 0. 00000439.These were the only three times in bitcoin’s recorded price history that MC/TC was above 0. 000004.Currently, MC/TC is at 0.00000246. This indicates that there is ample time until the bull market is over.”
Like we had predicted last week when Ethereum cracked the $2,000 barrier, ETH is trading above $2,100, posting a sweet gain of nearly 15% on the day. We had also forecasted that ETH would reach $2,400 – $2,500 by the end of April. We still hold to this belief but believe we may see that price point hit even sooner. We recommend anyone with a membership to one of the many spot exchanges buy ETH with the above-mentioned price targets.
Bitcoin, BTC to USD, fell by 1.95% on Tuesday. Reversing a 1.55% gain from Monday, Bitcoin ended the day at $57,991.0.
A mixed start to the day saw Bitcoin rise to an early morning intraday high $59,499.0 before hitting reverse.
Falling short of the first major resistance level at $59,980, Bitcoin fell to an early afternoon intraday low $57,401.0.
Bitcoin fell through the first major support level at $57,580 before briefly revisiting $58,200 levels.
Failing to move back through to $59,000 levels, Bitcoin eased back to end the day at sub-$58,000 levels.
The near-term bullish trend remained intact supported by the recovery from sub-$55,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $26,041 to form a near-term bearish trend.
The Rest of the Pack
Across the rest of the majors, it was a mixed day on Tuesday.
Crypto.com Coin and Polkadot slid by 7.12% and by 3.57% to buck the trend and join Bitcoin in the red.
It was a bullish day for the rest of the majors, however.
Bitcoin Continues its Parabolic Advance Throughout March
Such an impressive uptrend was fueled by news of further adoption by some of the largest financial institutions worldwide.
Citi declared that Bitcoin could become the “currency of choice” for international trade in a few years. The U.S. banking giant has released a 108-page document at the beginning of the month titled “Bitcoin: At The Tipping Point,” arguing that BTC is the “North Star” that acts as a guiding light for decentralized finance and other areas of the blockchain space.
Along the same lines, the Director of Fidelity’s Global Macro Jurrien Timmer said that Bitcoin has evolved as a form of digital gold. According to the analyst, BTC will become scarcer than the precious metal, becoming a “more convex form of gold.” Weighing the pros and cons of investing in the digital asset, Timmer stated that it might make “one component of the bond side of a 60/40 stock/bond portfolio.”
The acknowledgment that Bitcoin is now part of the global financial system from such major corporations seems to have been the catalyst that pushed prices to a new all-time high of $61,800 in mid-March.
Nonetheless, the rising price action was quickly spoiled by a senior government official in India who stated that the nation would almost certainly ban cryptocurrency. The news reignited fear among crypto investors in the South Asian country since holding cryptocurrencies was also going to be a criminal offense punishable by up to 10 years imprisonment.
As investors in India began to panic sell their holding, Bitcoin took an 18.50% nosedive to hit a low of $50,500 on March 25th. But some market participants took advantage of the downswing to add more tokens to their portfolios at a discount, with American citizens spending a significant portion of their U.S. stimulus checks into BTC.
The bellwether cryptocurrency closed the month on news that Morgan Stanley was planning to offer its richest customers the option to invest in Bitcoin in high-risk funds, allowing prices to recover from the Indian sell-off.
Ethereum Miners Threaten to Disrupt the Network, But Tensions Eased
Like a rising tide that lifts all boats, the global recognition that Bitcoin achieved throughout March also helped Ethereum surge. The second-largest cryptocurrency by market capitalization rose from a monthly open of $1,420 to close the first quarter of the year at a high of $1,909, according to CEX.IO’s exchange rate. ETH investors generated a monthly profit of nearly 35%.
Ether kicked off the month on news that Amazon Managed Blockchain added support for the smart contracts blockchain, allowing users to set up Ethereum nodes and join the network via Amazon’s blockchain service.
Although the news was well-received by software developers, a proposal to improve Ethereum transaction costs took center stage.
Ether’s core developers agreed to add the blockchain’s crucial EIP-1559 to the London fork in July. The idea behind the improvement proposals was to burn a portion of the gas fees on every transaction to reduce ETH supply. EIP-1559 could be thought of as an “ETH buyback,” making Ethereum a deflationary asset
Certain miners publicly opposed the update since it would hurt their source of revenue. For instance, SparkPool and Bitfly, two of Ethereum’s key mining pools, shared their concerns on Twitter, stating that they were “sad to see many people only care about price now.” As a result, the hashtag “#stopeip1559” gained a significant amount of support.
While several community members threatened to move their hashrate to Ethermine for 51 hours, Ethereum creator Vitalik Buterin vowed for a more immediate merge of Ethereum 1.0 and Ethereum 2.0. The merge would mark a more thorough transition to proof-of-stake and prevent miners from attacking the network.
As tensions heated up between miners and Ethereum developers, market participants became concerned over the network’s stability. The potential Indian ban on crypto also served as fuel for a sell-off that saw ETH drop by nearly 22% to hit a low of $1,550 on March 24th.
Thankfully, Ethereum layer 2 solution Hermez Network launched on mainnet promising to alleviate some of the well-documented congestion issues. Through ZK-Rollup technology, it was suggested that ETH would process vast amounts of transactions, moving billions of dollars worth of digital assets.
The announcement was well received by the crypto community alongside Visa’s decision to allow digital currency payments settling directly on the Ethereum blockchain. Such positive developments allow Ether to recover the losses incurred and close the month in the greed.
The Bull Run Isn’t Over Yet
April has historically been the most bullish month for Bitcoin and Ethereum. Price data reveals a 51% average gain for both cryptocurrencies during the fourth month of the year. More importantly, Coinbase’s upcoming listing on the NASDAQ could significantly affect prices since it will bring digital assets to a new realm of investors.
Market participants have already been placing their bets for the coming weeks. With $2 billion in open interest and a 0.79 put/call ratio, speculators forecast BTC will reach a price of $80,000 before the end of the month. Meanwhile, Ethereum’s technical indicators predict a nearly 40% advance towards a new all-time high of $2,500 or higher.
Konstantin Anissimov, Executive Director at CEX.IO
One year later, and March 2021 already seems somewhat better from all standpoints. But, when it comes to the crypto industry, this last month has been one of the most prosperous in the sector’s entire history, especially when it comes to adoption and the prices of Bitcoin and Ethereum.
March 2021 boosts crypto adoption
The past 31 days have brought a lot of progress to the cryptocurrency industry, but it could be said that the adoption has seen the most progress. Institutional investors have been overcoming their fear of cryptocurrency for over a year now, and with each passing month, they have been more and more encouraged to join the crypto sector and help it grow. Companies like Grayscale and MicroStrategy have invested millions into crypto on behalf of their clients, and despite recent dips, institutions continue to invest. Grayscale even launched new crypto products only a few weeks ago.
Major financial institutions like JPMorgan and Morgan Stanley have started offering crypto products, and even the Deutsche Bank openly stated that cryptocurrencies can no longer be ignored.
This last month revealed that Tesla has bought over $1.5 billion worth of Bitcoin. This month, however, its CEO, Elon Musk, announced that the electric car company will now start accepting Bitcoin as a means of payment.
Another report revealed that Bitcoin miners managed to earn over $1.5 billion in March of this year alone, making mining one of the most profitable ways of earning Bitcoin at the moment.
And, of course, no one will soon forget that this was a month of Bitcoin ETFs, with as many as three of them emerging in Canada, one of which was launched by Galaxy Digital’s Mike Novogratz. These are the first BTC ETFs in North America, and their very existence has given US companies a new encouragement to continue to bombard the SEC with new ETF applications.
This has also been a major month for Ethereum, as its DeFi sector reached an all-time high at $46.1 billion in total value locked (TVL) in mid-March. Meanwhile, NFTs (non-fungible tokens) became one of the main topics of news and discussions, as tokenization started taking off. There were countless examples of celebrities, groups, and organizations launching NFTs, selling tokenized versions of songs, tweets, watches, and anything else that has any kind of value.
Not to mention that Visa embraced crypto settlement, and chose Ethereum blockchain to conduct them on. Lastly, Ethereum continues to slowly implement changes that will eventually result in its transformation into Ethereum 2.0 — a better, faster, more scalable blockchain, with much cheaper transactions and greater functionalities.
Bitcoin and Ethereum hit all-time highs in March 2021
The situation regarding crypto prices was equally as good, at least for a time. Bitcoin managed to hit a new ATH earlier this month, which was followed by a major price correction. The coin reached an ATH of $61,683 on March 13th, only to correct to $54k three days later. It then attempted to reach $60k once again after that, and it succeeded, but the approaching expiration date of $6 million worth of Bitcoin options caused fears of major sell-off, resulting in an even deeper price drop that brought the coin to $51k by March 25th.
Now, only one week later, the coin is nearly back at $60k, surging rapidly over the past week, and currently sitting at $59,781.
Ethereum saw a similar price performance, however it was held back by extremely strong resistance at $1,850 for the majority of the month, and this barrier caused it to trade sideways for weeks. The coin managed to breach it only once in the past month, around the time of Bitcoin’s ATH. However, ETH did not manage to beat its February record. Instead, it only climbed to $1920 before dropping back down.
When Bitcoin options expiration date approached, ETH price was affected too due to BTC dominance, dropping to $1560 as a result. However, just like BTC, Ethereum also recovered over the past six days, and it currently pushes strongly against the resistance at $1850, which is also the coin’s price at the time of writing.
At the moment, both coins are trading in the green, with their prices surging as the new rally took over, and it would not be surprising for new ATHs to be reached in the next day. Historically speaking, crypto industry often performs very well in April and May, so the next two months have an excellent chance of bringing great price performance.
Greg Waisman, the co-founder and COO of the global payment network Mercuryo
This week Ethereum has risen by 25%, gaining 5% today alone bringing Ethereum to a new all-time high and cracking $2,000 for the first time. Bitcoin has returned to $60,000 and all though its not a new record considering the fact that it had been trading at around $6,000 one year ago a 10x annual price appreciation is nothing to sneer at.
Ethereum now looks poised to take on $2,100 and I am expecting as high as $2,400 by the end of April. This should be accompanied by a new record high in BTC as the two tend to move in synchromism.
The top two cryptos have also seen a decrease in volatility an aspect that makes investors more confident and has the possibility to bring in new ones. The Fact that Bitcoin futures never once broke below $50,000 after moving above this price point seven weeks ago. The two juggernauts of the digital currency revolution have certainly proven that they are not only here to stay but here to grow along the way.