Bitcoin moves towards $26,000 on the back of market turmoil, Ethereum price also seems poised for another rise.
Over the past few days, the cryptocurrency market, especially the stablecoin market, has seen a lot of volatility as the US authorities shut down major banks that had policies that favored cryptocurrencies, ostensibly due to a liquidity crunch. A number of stablecoins had to look for new reserves due to this sudden closure. The hardest hit was Circle, the second-largest stablecoin issuer in the USDC market, with $3.3 billion in reserves in the collapsed SVB bank. At the same time, according to CNBC, bitcoin is up 50% this year. Among the significant cryptocurrencies, Ethereum is up 42% this year and Solana is up over 100%. By contrast, the high-tech Nasdaq rating, with which bitcoin has been closely linked in the past, has risen just 12% this year. The S&P500 rose 2.5%. Seen as an asset that investors flock to during market turmoil, gold is up just over 3% this year.
According to the price chart for Bitcoin, $26,500 – $27,000 is a significant weekly resistance. If the weekly candlestick sets above this level, BTC will exit the downtrend in a significant downtrend and possibly return to an uptrend cycle. In addition, the upward momentum may be caused by market excitement in anticipation of a number of significant events. Yesterday, the Ethereum developers announced that the Shanghai update for Ethereum will be officially launched on April 12. This is one of the most important Ethereum updates, marking the possible withdrawal of invested ETH. In addition, Binance Launchpad plans to launch its 30th Space ID (ID) project on March 22, 2023. This project will follow the standard Launchpad subscription format, with users’ BNB balances recorded over a period of 5 days starting March 17, 2023, through March 22, 2023. The crypto community is also looking forward to the release of the ARB token, scheduled for March 23rd. The token is intended to provide DAO governance for Arbitrum’s network. The event became widely popular, making it the sixth trending Twitter thread in the US with over 10,000 tweets.
The price of Ethereum has started a downward correction below the $1,700 support zone. ETH traded below $1,650 before bulls appeared around $1,620 similar to Bitcoin. The cryptocurrency was trading at $1,616 and recently started a new uptrend. There was a clear move above the $1650 and $1665 resistance levels. Price broke the 50% Fibonacci retracement level from the down move from the $1,784 swing high to $1,616 low. Ether is currently trading above $1,650 and the 100 hourly simple moving average. On the hourly chart of ETH/USD, a key bullish trend line is also forming with support near $1675. On the other hand, the price is facing resistance near the $1,720 zone. It sits near the 61.8% Fibonacci retracement level of the down move from the $1,784 swing high to $1,616 low. The next major resistance is near the $1745 zone. A close above the $1,745 resistance zone could lead to another significant upside. In this case, the price could possibly rise to the $1,800 resistance level. Any additional profit could push the price up to $1,880. If Ethereum fails to overcome the $1,720 resistance, this could correct gains. Initial support on the downside is near the $1680 level and the trendline zone. The next major support is near the $1640 zone and the 100 hour SMA. If there is a break below $1640, the price could drop to $1615. Any additional losses may require a test of the $1550 level.
On the flip side, some analysts say financial sector stress could slow the pace of Fed rate hikes, which could help risk assets like stocks and bitcoin. This comes even after Fed Chairman Jerome Powell said days before the banking crash that interest rates were likely to be higher than policymakers expected.
Having said all of the above, investors are advised to take some time to think before making any investment. One of the legitimate forms of investment is, for example, the ASTL investment project, which allows investors to have the opportunity to directly invest fiat and cryptocurrency assets in a stable passive income that obviously exceeds inflationary expectations and is not subject to any sanctions, blocking and confiscation. The ASTL project is a simple and elegant solution for potential investors – an investment in the development of the real sector of a diversified portfolio of cryptocurrencies, with a fairly high ROI (up to 12% annually) with payments in stablecoin (USDT). Details can be found at https://astl.io.
