CRYPTOCURRENCY MARKET OUTLOOK: BITCOIN (BTC/USD), ETHEREUM (ETH/USD) MIRED BY STIMULUS CHECKS & STRONG US DOLLAR
Bitcoin and Ethereum, the 2 largest cryptocurrencies by market cap, have been struggling to beat a latest wave of promoting stress. BTC/USD worth motion trades roughly -12% beneath its document excessive notched final month whereas ETH/USD hovers about -15% off its respective peak. That mentioned, that is notably above their newest swing lows that briefly left Bitcoin and Ethereum in bear market territory.
Piggybacking on the surge in actual yields, broad-based US Greenback power stands out as a major catalyst weighing negatively on crypto. This has been considerably negated by mounting non-public sector acceptance of Bitcoin, nonetheless. Additionally, with one other spherical of stimulus checks coming down the pipeline due to the passage of President Biden’s $1.9-trillion covid support bundle, there might be potential for one more inflow of demand for Bitcoin and Ethereum.
BTC/USD – BITCOIN PRICE CHART: DAILY TIME FRAME (28 NOV 2020 TO 08 MAR 2021)
BTC/USD is at present flirting with a topside break of the $52,000-price stage and its 20-day easy shifting common. Eclipsing this space of technical resistance might see Bitcoin lengthen increased towards its higher Bollinger Band and 21 February document shut. Alternatively, if Bitcoin bears try and wrestle again management, the 50-day easy shifting common would possibly come into focus as a possible draw back goal. Breaching the $42,000-handle might open up the door to a deeper pullback towards year-to-date lows.
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ETH/USD – ETHEREUM PRICE CHART: DAILY TIME FRAME (27 NOV 2020 TO 08 MAR 2021)
Ethereum has traded a bit extra favorably over the past couple of classes in comparison with its crypto cousin Bitcoin. ETH/USD worth motion seems perched comfortably above its 20-day easy shifting common as bulls look to retain management of route. To not point out, a bullish MACD crossover factors to potential for continuation increased. However, failure to surmount the $1,800-price stage, which roughly aligns with the 61.8% Fibonacci retracement of its newest bearish leg, might see Ethereum pivot again decrease towards its key moving averages.
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