Bitcoin’s (BTC) momentary jump above $70,000 and Ethereum (ETH) hitting $4,000 on March 8 has ensured that the top two cryptocurrencies continue to outshine the SP 500.
According to crypto analysis tool ‘Santiment,’ posted that BTC climbed by 10% this week. ETH, on the other hand, jumped by 14.7% while the SP 500, which is the weighted index of the top 500 publicly traded U.S. companies, posted a mild 0.5% gain.
A position like this could be a confirmation of the crypto bull market as the correlation with traditional assets has been diverging. Beyond the weekly performance, Coin Editon checked out what has happened with the assets in the last 24 hours.
Despite retracing to $68,389, Bitcoin’s 24-hour performance was a 2.17% hike. ETH had also fallen to $3,928 but maintained a 1.14% increase. But the same could not be said of the SP 500 whose value slid by 0.65% within the same period.
Bitcoin (BTC)
After BTC hit $69,000 on March 5, the price crashed to $61,289 as a result of high volatility in the market. But that plunge did not stop the weekly uptrend. As expected, traders took advantage of the decline and bought the dip.
By March 6, Bitcoin was back above $67,000, indicating that market participants had aggressively purchased the coin. From the 4-hour BTC/USD chart, bulls were trying to push the price higher.
However, the resistance at $69,055 was acting as a stumbling block. If bulls can defend the $65,744 support and break through the aforementioned resistance, BTC can hit a new all-time high.
If this move is successful, the price of Bitcoin might hit $72,000 within a short period. Meanwhile, the Relative Strength Index (RSI) reading stalled at 60.84, suggesting a decline in buying momentum.
BTC/USD 4-Hour Chart (Source:
TradingView )
Should the momentum continue to decline, Bitcoin might undergo a correction which could send it below $63,000. On the other hand, if bulls can guard the $65,744 level, then a bounce toward $80,000 could be possible in the mid-term.
Ethereum (ETH)
ETH finally succumbed to the $4,000 price prediction on March 8 but dropped below it later. But before then, high selling pressure had pulled the price down from $3,781 to $3,377. At press time, an overhead resistance at $3,960 seemed to be stopping the altcoin from retesting $4,000.
Furthermore, the Supertrend indicator flashed a buy signal at $3,659. Thus, if bears successfully tug back ETH’s price, that could be a good entry point. However, there was no sell signal despite the upswing.
BTC/USD 4-Hour Chart (Source: TradingView )
Therefore, failure to arrest the upside could see ETH climb to $4,200 levels. Like BTC, the RSI also indicated a drawback in bullish momentum. If the momentum declines, ETH could be in danger of a pullback.
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