[PRICE ANALYSIS] MARCH 16: BTC, ETH
Markets are dynamic, and anybody that has traded the financial markets within the last decade would have seen the current events as something that happens from time to time. Even though we know that the financial markets can correct itself, sometimes we feel the need to intervene and steer the market in the direction that we believe it ought to go.
This kind of action would usually produce short term results, which is not sustainable in the long run. It is this attempt to help the markets, that propelled the US Federal Reserve to implement an emergency rate cut. On March 3, the Fed implemented a 50 basis point cut, followed with a 100 bps cut on March 15. In addition to that, the Fed declared a $700 billion quantitative fund.
The initial response to this move was positive for cryptocurrencies as the total market capitalization surged from about $147.8 billion to $165.8 billion within minutes. However, the momentum could not be sustained, and the crypto market again bowed to selling pressure, and the market cap dropped to a low of $127.2 billion.
However, buyers again emerged at lower levels, a positive indicator that long term investors are accumulating on dips. Today, the market cap has risen to $150.5 billion.
At times like this, we advise that every trader/investor has a proper strategy that they can adopt in building and protecting their crypto investments in any direction that market moves. This is because there will be more news in the coming days that will affect prices and cause volatility in the markets(either positive or negative).
BTC/USD
Although there was a brief rally from the bulls that drove the price a little close to the $6,000 mark on March 13th and 15th, the selling pressure from the bears kept pushing the price down to between $5,000 to $5,400 range.
If sell pressure from the bears continues down to $4,400, another entry point for a bounce-back is possible at $3,803.58. The 20-day EMA and the RSI in the oversold zone indicate that the bears are influencing market direction at this point.
However, if the bulls buy the dips below $5,000, the BTC/USD pair might attempt a recovery to $6,000. We will expect some calculated moves by traders to buy and sell at support and resistance levels, given the volatility of the markets.
We also advise that as more buying opportunities present itself in the weeks to come, caution should be applied in determining the best entry point.
ETH/USD
The Eth market seems to have had opportunities for a bull run that was not utilized in the past week. For three days, the price stayed above $117, yet that was not enough momentum to drive it to the $155 level. This indicates that the buyers are not expecting the price to be sustained at $155 given the current market conditions, hence the low buy orders.
Consequently, the bears will attempt to push the ETH/USD pair below the strong support at $84.25. If this happens, the selloff will continue until a new support level of $50 is reached.
However, if the buyers step in and buy the current dip, it will show demand at lower levels. If the pair bounces off $100 or the support at $84.25, the bulls will once again attempt a relief rally. The levels to watch on the upside are $139.386 and above it $155.612. We will still observe the market direction until we see a trend reversal.
Note: This post is culled from an original article by Cointelegraph.
