Bitcoin (BTC/USD) Backs Down, Ethereum (ETH/USD) Sets Range

Last week brought the fireworks on the Central Bank front and despite the comments from Chair Powell and the Fed about near-term rate policy, risk markets appear to be treading cautiously as Quarter-end nears.

To be sure, the Fed has made a little signal of removing support. Markets, on the other hand, have started to get wound up about the potential that the Fed may have to begin removing that support sooner rather than later. We’re likely going to see at least some of this reconciled in the next week and a half, as the end of Q1 nears. Risk parity funds allocating away from stocks and into bonds to capture those new higher rates may lead to a bit of a shift; but if we do see flows into bonds, stoking higher prices, the rates problem may begin to start solving itself without the Fed having to push on any levers.

In crypto markets, both Bitcoin and Ethereum remain on their back foots after extremely strong starts to the year. This could perhaps be a bit of window dressing ahead of Quarter-end, with the recent bullish trend in Bitcoin showing the possibility of a deeper pullback while the flatter price action of Ethereum may offer some range setups in the week ahead.

BITCOIN THREATENS DEEPER PULLBACK

Bitcoin had a super-charged start to the month – rising by 43% in the first two weeks of March trade. This entailed another fresh all-time-high as Bitcoin mounted above the 60k figure for the first time ever.

But that 60k marker appeared to be too much for bulls to handle at this point, as prices quickly dropped back before buckling up for resistance on the big figure twice more before pulling back a bit deeper. So, at this stage – the bullish trend is not yet done as there’s a very reasonable level for why buyers have pulled back on the throttle, and this is why psychological levels can often take a few attempts before finally being taken-out.

That pullback from 60k has pushed prices into a support zone spanning from Fibonacci levels at 57,032-57,354, and a bit deeper another confluent zone exists from 53,998-54,615. Support holds in either zone could re-open the door for bullish continuation prospects; and on the other side of the matter, topside breaks through the 60k level can re-open the door for breakout approaches in Bitcoin.

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