Times of crisis usually reveal the kind of investors we have backing a project, as individuals begin to reassess if they believe in the long term performance of that project in the face of such crisis or not. This phenomenon is one of the scenarios that played out during the period of massive markets selloff, as those investors who got on board without looking at the fundamentals quickly got panic-stricken while others used this period as an opportunity to shore up their stock of the asset at a bargain price.
Markets participants could easily see the March 12 selloff as a response of panic-stricken investors to the current economic events, which has caused several businesses to downsize and cut down operations. However, the correction that followed shortly also indicates that several investors had been watching closely for an opportunity to buy at lower price levels, as the major cryptocurrencies have rebounded since then, and even pressing higher.
At the end of the selling phase following a period of uncertainty, market participants are better poised to respond to positive news, as they believe that the worst is over, and would quickly want to position themselves to take advantage of positive developments. The different sectors of the financial markets are already responding positively, with assets such as gold, equity markets and cryptocurrencies advancing together.
The positive response in the equity markets can also be attributed to the economic stimulus package introduced by the US government. This injection of more money into the system is the same reason the price of gold is also going up because the purchasing power of FIAT money decreases as the government produces more units.
Eventually, as things begin to settle down, the direction of the market will again be ascertained based on economic fundamentals. Events and announcement such as bitcoin halving, central bank digital currencies, blockchain developments and other industry actions effects will be easy to decipher from the charts.
BTC/USD
Once again, Bitcoin (BTC) has broken out of the overhead resistance at $7,000. On the off chance that the bulls can continue to drive the price above this level, a move to $8,000 or $9,000 is conceivable.
Be that as it may, the bears probably won't quit without a battle. They are probably going to protect the 50-day SMA at $7,517. On the off chance that the BTC/USD pair diverts down from this level yet discovers support above $7,000, it will flag off a higher floor.
Our bullish view will be refuted if the pair diverts down from the present levels or the 50-day SMA and breaks underneath $6,553.21. The traders can follow the stops higher to $6,500 after the pair scales over the 50-day SMA. Up to that point, the stops on the long positions can be sustained at $5,600.
ETH/USD
Ether (ETH) has broken out of the overhead resistance at $155.612. On the off chance that the price can close (UTC) over this level, it will trigger our purchase recommendation in an earlier analysis. The main objective at the moment is a transition to the 50-day SMA at $182.
On the off chance that the bulls can push the ETH/USD pair over the 50-day SMA, a momentum to $208.50 or more it to $250 is likely.
Our bullish view will be refuted if the pair diverts down from the present levels or the 50-day SMA and plunges underneath the basic support at $117.090.
Note: This post is culled from an original article by cointelegraph
