This past week, Bitcoin added more than 23% and managed to break one of this year’s high at $10,500 per coin.
Dmitriy Gurkovskiy, a senior analyst at foreign exchange broker RoboForex, provides his vision of the possible tendencies in price changes for Bitcoin as well as for other major cryptos.
The cryptocurrency market capitalization reached $320 billion. Altcoins are trying to keep pace with the “captain” of the industry but their dynamics are quite different. The Chicago Mercantile Exchange announced a record rally in trading volumes of BTC futures. The daily trading volume increased by 350% in comparison with the previous average numbers. An increase in activity and open position volume at the CME was caused by a “hurricane” growth of the Bitcoin rate. According to Skew, the daily trading volume in Bitcoin exceeded $40 billion. However, the all-time high of $50 billion, which was recorded on the “black Thursday”, March 12th, remains unbeaten so far. Open interest in BTC futures hit $5 billion.
After some sort of revival on the cryptocurrency market, one should pay attention to long-term and mid-term tendencies. As a result, when one looks at the daily chart, they can see that Bitcoin has broken both the previous mid-term descending correction channel and the long-term resistance line. After updating important fractal highs, the asset may form a new rising channel. The mid-term upside target is the resistance line at $13,000. However, if we take a closer look, it can be seen that longer-term price movements are drawing an upside border and the upside target at $14,700. The support area may be at $9,745. The “Golden Cross” on MACD indicates a potential for a further rising tendency. After reaching the target, the asset may start a pullback towards the support line.
The H4 chart of BTC/USD shows a more detailed structure of the previous ascending wave after a breakout of the resistance line and the “Golden Cross” on Stochastic Oscillator. At the moment, the rising impulse has slowed down to start a new correction in the form of a Triangle pattern. The potential of this correction implies that after reaching 23.6% fibo it may continue towards 38.2% and 50.0% fibo at $10,508 and $10,227 respectively. Signals for a start and a continuation of the correction are Stochastic Oscillator’s entering the “overbought area” and the following “Black Cross”.
As we can see in the daily chart, ETH/USD is forming an ascending tendency within a stable and almost perfect cannel. We should also note after a thorough test of the long-term resistance line, the asset has broken it. As a result, the pair is moving within an upside projected channel with the mid-term targets in the range between $400 and $420. However, the mid-term scenario implies that the price has equal chances for a rebound and a breakout of the resistance line. Still, judging by the MACD…