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What’s Next for Bitcoin and Ethereum Price Amid Market Uncertainty? THETA, Terra Attain New All-Time Highs

Ethereum

Bitcoin price extended its decline to lows of $46,219 on March 5 as the U.S. dollar index (DXY) reached the highest levels since November 2020. The 10-year U.S. Treasury Yield also jumped from about 1% at the start of the year to 1.626% resulting in profit-booking across the board.

The second-largest cryptocurrency, Ethereum also experienced a significant pullback earlier today, dropping to $1,442. The drop in investor sentiment has also affected the stock prices of MicroStrategy and Tesla. MicroStrategy’s stock price has plunged by over 50% from its all-time high at $1,315 while Tesla, which had announced a $1.5 billion Bitcoin buy-in in early February has also seen its stock price drop by nearly 34%.

While Bitcoin and most major Altcoins declined today, Theta (THETA), a blockchain-powered network purpose-built for video streaming rallied to new all-time highs of $4.72. Terra (LUNA), a blockchain protocol that uses fiat-pegged Stablecoins to power price-stable global payment systems also rose to new all-time highs of $8.76. This follows almost after a year when it plunged to all-time lows of $0.1199 during the March market carnage. LUNA’s price moves bring it up more than 7000% from its March bottoms.

SwissBorg’s (CHSB) price also rallied to establish a new high at $1.16 on Feb. 22 when Bitcoin started its massive sell-off. THORChain (RUNE) also rose to a new all-time high of $6.09 on March 3rd.

What’s Next for Bitcoin and Ethereum Price?

Bitcoin plunged from highs of $58,367 on Feb. 21. After strong parabolic rallies, a cooling-off period of range-bound trading and lower support retests is usual and from a technical point of view, Bitcoin and Ethereum are in a consolidation phase.

BTC/USD Daily Chart

Scott Melker, a cryptocurrency trader, said Bitcoin likely falls into a range. There are significant selling pressure and lots of buyer demand, placing it in a tight range. He said:

“Likely we fall into a range here. Lots of selling at the top (up wicks), lots of buying at the bottom (down wicks). Nice to see a clear shift from supply to demand here.”

Cheds, a Twitter trader anticipates “more consolidation from BTC above that key 42k level”

Various fundamental metrics and on-chain indicators however suggest that Bitcoin is on a bullish trajectory despite the stagnant market structure, as the crypto asset is up nearly 100% year-to-date. While many are calling for a local top, a recent Kraken report indicates that history would suggest Bitcoin remains “far and away” from a market top. The report stated:

“Based on previous cycles, Bitcoin could likely continue appreciating gradually at price before ultimately going parabolic and hitting resistance, which will signal the end of its fourth bull market cycle,”

Courtesy: Tradingview

Kraken also indicated that March has historically been a month of consolidation and correction for Bitcoin, except for two instances.

The report also notes that Bitcoin’s recent price movement is similar to that seen in Q1 2013 when it blossomed most. This may be a positive sign for Bitcoin price and could subvert the historic trend which sees Bitcoin underperform in March.

In the near term, Bitcoin needs to hold on to the support at $42,000 to avoid further declines. A sustained break above $52,000 will open the doors for a rally to the all-time high. Ethereum must hold on to the critical support near $1,300, otherwise, the selling could intensify to the $1,000 psychological level.

Image Credit: Tradingview, Shutterstock

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