The cryptocurrency market continues its unmatched volatility and investors are in the pursuit of critically examining the damage caused by the dip on March 12 due to the CONVID-19 pandemic and the actions taken to revive the economy.
Despite the fall, long-term HODLers are still HODLing. Unchained Capital stated that last year, the percentage of Bitcoin HODLed for over five years has only gone up from 20.37% to 21.65%. Research shows that short-term HODLers are the ones dumping their portfolio while the long-term HODLers keep buying the dip.
However, if the pandemic isn’t contained, traders will keep panicking and dumping their holdings.
We advise investors to see the fall in prices as an opportunity to accumulate more assets for the long-term as this pandemic will eventually pass, and everything will go back to normal.
BTC/USD
At the moment, there's a high demand for BTC at the lower levels below the support. This demand which began on the 16th of March is a good sign.
BTC USD daily chart. Source: Tradingview
Due to the sudden dip on March 12, the BTC/USD trading pair might remain stuck between $4400 and $6000.
If BTC eventually moves past this range, then this shows that more accumulation has been done at lower levels and the bulls have eventually conquered the bears.
When the price of BTC moves above the $6000 and $6400 resistance, we might call long positions.
However, this bullish view becomes invalid if the BTC price goes below $4000/$3803.58. Although the chances of that happening are low, if it does happen, it will be a massive negative.
ETH/USD
The bulls are finding it difficult to break the $117.090 support. Although a lot of purchase was made when ETH dipped to $100.926 on the 16th of March, this wasn't enough to push the price above $117.090. It simply shows that there were minor selling of ETH by the bears.
ETH USD daily chart. Source: Tradingview
If the ETH/USD trading pair doesn't push above $117.090, a dip to $84.25 might happen. This is a serious level to watch because the dip could extend to $50 if the $84.25 support doesn't hold.
On the other hand, if ETH/USD moves above the downtrend line, it might push to $139.386.
Note: This post is culled from an original article by cointelegraph
