Insights > Technical analysis > Is the cryptocurrency market poised to accelerate this spring?

Is the cryptocurrency market poised to accelerate this spring?

31 March 2021

temps de lecture 3 minutes

avatar-auteurJulien Moretto


The first quarter of 2021 is expected to end on a positive note for the cryptocurrency market, with Bitcoin on the verge of passing the symbolic €50,000 ($60,000) price again. The king of cryptoassets is trading around €49,400 ($58,000) this March 31. From a technical perspective, the bullish trend was never in question during the month of March. Statistics from the Bitcoin blockchain continue to show that the movement of bitcoins between wallets remains low, suggesting that many investors are still holding on to their bitcoins and are not interested in selling at this time.

Altcoins are also benefiting from this trend. Ethereum (ETH) is approaching $2,000 again and projects like Filecoin (FIL) or Solana (SOL) are performing above 20% in the top 20 capitalization.

This week was also marked by announcements from major payment players on future solutions to settle payments in cryptoactives or stablecoins. News that goes towards a more massive adoption of the sector and therefore positive for the price of most stocks. On the macroeconomic front, a new $3 trillion plan is desired by US President Joe Biden to support public infrastructure. This decision comes at a time when the vaccination campaign is already massive in the United States, with a gradual return of consumption and investment. A situation that strengthens the dollar for the moment, but that could eventually lead to uncontrolled inflation and therefore an appreciation in the value of the main cryptocurrencies.

  • According to CoinGecko, the market capitalization is growing and approaching $1900 billion.
  • Bitcoin’s dominance drops slightly to 58.2% market share.
  • The best performance of the top 50 is attributed to Holo (HOT) with +117% over one week.

We invite you to discover our video analysis (in french and dated from March 30):

Bitcoin (BTC)

The Coinhouse recommendation :
Buy

  • The price of Bitcoin is trading at around 49,400€ ($58,000) on March 31, up 5% on the week. The 42,200 and 44,100€ ($50,200 and $52,300) pivot zone has acted as a buying zone as expected. The price is heading back towards $60,000. The break of the €50,700 ($61,800) will be a strong confirmation of trend continuation. A new partial profit zone is now located between 58,800 and 62,700€ (69,000 and 73,500$). We will also be watching the RSI indicator on the chart, if it breaks back above the descending oblique drawn in gray, this indicator would reinforce the signal of a new bullish phase on Bitcoin.

Ethereum (ETH)

The Coinhouse recommendation :
Buy on breakout

  • Ethereum (ETH) is gaining 7% to trade at €1,530 ($1,790) and is closing in on major resistance at €1,600 ($1,900). The area identified last week between $1,540 and $1,620 was also a good place to buy. For those who have not yet taken a position in Ethereum, the strong buy signal will be to end the day above €1,600 ($1,900). We will then have a strong chance of making a new all-time high on Ethereum. The next area of partial profit taking remains between 1,930€ and 2,100€ (2,300 and 2,500$).

Polkadot (DOT)

The Coinhouse recommendation :
Wait

  • Polkadot (DOT) is slightly down by 2% on the week to trade at around 29€ (34.25$). After a strong uptrend at the beginning of the year, Polkadot’s price is consolidating. This is still a positive phase and does not question the underlying trend on the asset, which remains bullish. This consolidation is taking place between 24.30 and 34€ (28.50 and 40$). Each time the price returns to the area around $28 to $30, these are opportunities to take a buy position. On the contrary, the approach of $38 to $40 is an opportunity to sell partially. On the other hand, a clear bullish break of $40 will be a strong buy signal to play a new historical high on Polkadot.

Tops & flops of the week (top 50 marketcap)


Tops

1- Holo (HOT) : +117%
2- Filecoin (FIL) : +83%
3- BitTorrent (BTT) : +63%


Flops

1- Uniswap (UNI) : -12%
2- IOTA : -12%
3- Bitcoin SV (BSV) : -4%

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 constitutes simple information that is under the user’s 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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