Cointree Crypto Market Update - March 17th 2021

Market update for traders

Jump to the beginner's version Bitcoin rockets to $78,000 AUD per bitcoin! Welcome to this week’s market update and another week in the extremely eventful cryptocurrency market. Bitcoin (BTC) began last week sounding out $70,000 for support before the largest crypto by market cap sprung to a new all time high of $78,177 AUD The overall picture sees bitcoin moving higher into a shrinking area of volatility, appearing as an ascending wedge pattern seen on the chart. We know that in bull market patterns such as these often break in continuation of the overall trend but it is just as likely to break to the downside. At the back end of the week, a historic $80,000 bitcoin was denied by sellers, with the price dropping by 10% to the bottom of the trendline.

Recapping Monday to Sunday last week in detail: a re-test of $70,000 was the signal bulls needed to go higher and push the market to $74,000. The short sharp volatility did not stop with bears forcing a full retracement of the previous upward move, back down to 70k, until bulls rallied and forced BTC back above the 0.786 Fibonacci retracement channel. Bitcoin ground sideways under $75,000 for a few days here until it finally had a 9% break out to $78,177. Unfortunately for bulls there wasn't the power behind the move as there has been on previous new ATH’s, with retail traders largely driving this move and not institutions through well-understood onramps. At the back end of the week, bears launched a last ditch assault to keep bitcoin away from $80,000 and they succeeded - crashing the price 10% to the base of the wedge where we now see bulls regrouping. In the week ahead, bulls will be fighting hard to keep bitcoin above $70,000. It is clear they are not as strong as one would have hoped to move higher but if they can remain in the wedge, a break to $80,000 is possible. It is likely that 70k will be retested for support where key moving averages will provide additional pressure. While BTC’s break to $78,000 AUD stole the show, major altcoins made some moves in its shadow. For the major altcoins: Litecoin (LTC) was up 14.5% and Ethereum (ETH) was up 12.7% in a great move for the blue-chip. Theta (THETA) also continues to outperform the market, up 46% at the time of writing.

Market update for beginners

Bitcoin rockets to $78,000 AUD per bitcoin! Welcome to this week’s market update and another week in the extremely eventful cryptocurrency market. Bitcoin (BTC) began last week sounding out $70,000 for support before the largest crypto by market cap sprung to a new all time high of $78,177 AUD The overall picture sees bitcoin moving higher into an ascending wedge pattern seen on the chart. We know that in bull markets these often go with the overall trend but it is just as likely to break to the downside at these high price levels. At the back end of the week, a historic $80,000 bitcoin was denied by sellers, with price dropping by 10%.

Recapping Monday to Sunday last week in detail: a re-test of $70,000 was the signal buyers needed to go higher and push the market to $74,000. The short sharp action did not stop with sellers forcing a full retracement of the previous upward move, back down to 70k. For days bitcoin ground sideways under $75,000 until it finally had a 9% break out to $78,177, a new all-time-high (ATH)! Unfortunately for buyers, there wasn't the power behind the move as there has been on previous new ATHs. We saw this at the back end of the week when sellers launched a last ditch assault to keep bitcoin away from $80,000 and they succeeded - crashing the price 10% to the base of the wedge which we see on the chart. In the week ahead, buyers will be fighting to keep bitcoin above $70,000. It is clear they are not as strong as first thought to move higher but if they can remain in the wedge, a break to $80,000 is possible. It is likely that 70k will be retested for support where key moving averages will provide additional pressure. While BTC’s break to $78,000 AUD stole the show, major altcoins made some moves in its shadow. For the major altcoins: Litecoin (LTC) was up 14.5% and Ethereum (ETH) was up 12.7% in a great move for the blue-chip. Theta (THETA) also continues to outperform the market, up 46% at the time of writing.