Insights > Technical analysis > Bitcoin soars towards $60,000, Ethereum driven by NFTs

Bitcoin soars towards $60,000, Ethereum driven by NFTs

10 March 2021

temps de lecture 4 minutes

avatar-auteurJulien Moretto


The cryptocurrency market is rebounding this week, after taking a scare in late February. Bitcoin’s price has gained 13% over the past seven days to trade at €46,200 ($55,000). The underlying trend remains bullish, and the ecosystem continues to benefit from good news: institutional interest continues to grow and the media coverage of Bitcoin is evolving positively. Our detailed technical analysis shows that an important resistance was broken on March 9, greatly increasing the likelihood that Bitcoin’s price will reach new highs by the end of March. Be careful not to completely rule out scenarios of a sudden resumption of the decline.

On Ethereum, the sky is also clearing. The uptrend seems to be resuming after the consensus allowing the ”EIP 1559” update which should lead to a significant decrease in network usage fees, Ethereum’s Achilles heel in recent months. Here again, an intermediate resistance has just been crossed and a return to $2000 is likely. Moreover, in addition to DeFi which was already generating a nice traction to the Ethereum ecosystem, the recent craze around NFTs (non-fungible tokens) is the new engine that is pulling the price of Ethereum and a number of projects up.

Finally, from a macro-economic perspective, the rise in bond yields that has been putting pressure on all markets in recent weeks is taking a break. The rebound of the dollar, which could have countered the uptrend in Bitcoin, also seems to be weakening as US President Joe Biden’s new $1.9 trillion economic stimulus package is about to be passed. Some of the checks distributed to Americans are likely to be invested in assets like Bitcoin.

  • According to CoinGecko, the market capitalization increased to over 1700 billion, compared to 1600 last week.
  • Bitcoin’s dominance is stable at 59.2% market share.
  • The best performance of the top 50 is attributed to Terra (Luna) with 73% over one week.

We invite you to discover our video analysis (in french and dated March 9):

Bitcoin (BTC)

The Coinhouse recommendation :
Buy

  • The Bitcoin price is trading around €46,200 ($55,000) on March 10, up 13% on the week. The intermediate resistance of 44,000€ ($52,500) was breached on March 9, which was one of our buy signals. This price action greatly increases the likelihood of a bullish continuation and a Bitcoin price above $58,000 by the end of March. We therefore remain positive about Bitcoin. In the event of a sudden bearish reversal, the area around $40,000 to $42,000 will remain an interesting place to buy.

Ethereum (ETH)

The Coinhouse recommendation :
Buy

  • Ethereum (ETH) is more bullish than Bitcoin this week, rising 22% to trade at €1530 ($1820). Again, the resistance zone between €1380 and €1450 ($1670 and $1755) was breached back on March 8, giving a buy signal to play the resumption of the uptrend. If Ethereum’s price breaks back above $2000, we have identified a new area to take partial profits: the one between €1930 and €2100 ($2300 and $2500).

Polkadot (DOT)

The Coinhouse recommendation :
Wait

  • Polkadot (DOT) is up 7% for the week and is trading around €32 ($38.20). However, the asset’s price has been in a lateral consolidation since February 20, represented by a compression triangle on the chart. For those wishing to take a position on DOT, it is advisable to wait for a directional exit from this consolidation. If the price ends the day above €33.60 ($40), it will be a buy signal to play the bullish continuation on Polkadot. On the other hand, a break of 28€ ($33.30) will be a sell signal.

Tops & flops of the week (top 50 marketcap)


Tops

1- Terra (LUNA) : +73%
2- Theta Network (THETA): +50%
3- VeChain (VET): +46%


Flops

1- NEM (XEM) : -17%
2- Cardano (ADA): -3%
3- Compound (COMP) : -2,8%

All information in this article is provided for informational purposes only, although it has been compiled from reputable and reliable sources. It does not constitute an offer to buy or sell digital assets, nor does it constitute an offer to provide services in respect of digital assets, nor does it constitute advice, inducement or recommendation to deal in such digital assets. It is simply information that the user holds in absolute control. We inform you that if you choose to invest in digital assets, you must be aware of our general terms and conditions of sale (https://bit.ly/2FGW2ek) and accept the various risks listed and defined on our legal warning page (https://bit.ly/3c4sQKc)

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