Written by Metal Team

On March 8, 2021

Market Report March 8 2021

Bitcoin (BTCUSD) (Daily)

The past week has proved strong for Bitcoin as support has held steady over the $45k zone.  We’ve seen bulls slowly grind upwards, flipping lower timeframe resistances into support along the way.  While Bitcoin bears have been quick to call it a top, there’s ample data showing otherwise.  Only approximately 15% from its recent all-time-high, the case for bears is weak.  With BTC supply on exchanges still at lows for this cycle, it is clear that sellers of the digital asset aren’t showing up as of yet.  If Bitcoin holds the current range, the stalling we’ve seen the past two weeks could be nothing more than another accumulation phase before it resumes its path to six figures.  If selling increases, buyers would likely step in heavily at support zones of $44,850, $40,650, and $29,900.

Ethereum (ETHUSD) (Daily)

Similarly, Ethereum has proved resilient since the heavier selling that flowed in on the 22nd and 23rd of February.  Support held strong at $1,394 while multiple taps into buy-side liquidity were seen over multiple days.  Currently, in the $1,700’s, Ethereum bulls want to see the asset break resistance at $1,780 for its next trip to an all-time high. Otherwise, buyers remain ready to fill at $1,394, $1,250, and $980.

Fundamentals & Correlations

The past week has shown Bitcoin dominance within the crypto markets dropping slightly to 61.01.  While the chart shows potential for a drop, there remains to be any clear confirmation.  If dominance does drop, the likelihood of heavier capital flowing into altcoins increases and will present many opportunities to those looking to trade the assets.  The U.S. Dollar Currency Index has shown some upward movement recently.  While not substantial, it currently sits at 92.388, up from last week’s 90.950.  This reveals a slight increase in strength in the Dollar against other world currencies, and if continued, could slow Bitcoin’s rise in price.  However, with the macro environment and fundamentals unchanged, there’s potential for very little impact if DXY continues upwards.

 

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