Weekly crypto market analysis (20 - 26 Mar)
Crypto Market Evolution
The digital asset market had a mixed performance last week, amid macroeconomic tensions and a technical slowdown in the significant growth momentum of late, which had driven the crypto market capitalization to its highest levels in the last 8 months. The announcement at the end of Sunday - March 19th, regarding the acquisition of Swiss bank Credit Suisse by rivals UBS, led to a temporary calming of fears caused by the banking crisis on international stock markets, and Bitcoin rose spectacularly above $28,000.
During the week, volatility returned to financial markets due to continued uncertainties about the stability of regional banks in the US and, moreover, we had a monetary policy meeting of the US Central Bank - FED, which again raised its benchmark interest rate, although some analysts indicated a pause in the monetary tightening cycle to give some breathing room to the banking system.
Following the FED’s decision, risk-sensitive assets entered another period of decline and cryptocurrencies evolved sideways with a slight correction trend.
Thus, despite volatility in the stock markets, Bitcoin and Ethereum ended the week neutral, in the areas of $27,500 and $1,800 respectively, while the rest of the market had a largely mixed performance.
The total capitalization of digital assets remained above the level of $1.1 trillion.
In the last seven days, Bitcoin's price fluctuated around $27,000 without a clear direction.
We can see on the chart that the weekly candle was the narrowest of this year, a sign that the market took a break after the consistent rise that brought BTC close to $30,000. It is noteworthy that Bitcoin was resilient in a week when we had tensions on international stock markets due to the banking crisis in the US and Europe, where the shares of the most important banks recorded significant declines.
The fact that BTC has remained at constant levels in recent days reinforces the idea that Bitcoin, due to its decentralised nature and limited supply (protected from inflation specific to the classic monetary system), can represent a safe haven asset in case of deteriorating confidence in the banking system.
From a technical analysis point of view, after breaking above $25,000 where we had convergence of 200 and 50-week moving averages and the recent high, it was expected to have a period of slowing growth momentum and even with a potential re-test down towards $25,000. This is a classic pattern of evolution after breaking through an important area. If the situation related to tensions in the banking sector continues, we may see sideways trading on BTC or even price corrections. In the scenario of returning positive sentiment to markets, Bitcoin could resume its recent growth targeting the $30,000 area.
ETH also had a week of “rest” after recent growth, with the Ethereum network’s crypto asset oscillating around $1,800.
The fact that Ether also resisted declines felt on stock markets, especially in the case of banks, may show investor confidence in the crypto segment as an alternative investment to traditional assets.
The price chart indicates that we are at the highest point since September 2022. To resume growth, we need a convincing break above $1,850 before ETH can pass the $2,000 threshold. If investor sentiment in the crypto market deteriorates, ETH could drop to the $1,500 - $1,600 area.
With the Shanghai upgrade scheduled for April, ETH’s evolution in the coming period may largely be determined by BTC’s movements without major deviations from its direction.
At the recent Paris Blockchain Week event, the MultiversX team announced a series of upgrades and new features to the network, increasing interest in the EGLD token and pushing its price up to $50.
The market decline after Wednesday’s FED meeting and continued tensions in the banking system led to corrections in the crypto market, felt more intensely on altcoins and less on BTC and ETH.
As a result, eGold gave back some of its early-week appreciation and stabilized in recent days around $42. EGLD is still below this year’s high of $55, so a resumption of overall market growth could put the Romanian network’s token back on track towards $50. If tensions on international stock markets continue to affect the crypto market, we may see EGLD drop towards $40 or even below.
Although eGold is currently influenced by general market movements, MultiversX’s constant development of the network positions the Sibiu-based project well for a potential long-term bull run in the crypto market.
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This report issued by Tradesilvania is purely informative and is not intended to be used as a tool for making investment decisions in crypto-assets. Any person who chooses to use this report in the process of making investment decisions assumes all related risks. Tradesilvania SRL has no legal or other obligation towards the person in question that would derive from the publication of this report publicly.
The information in this report was obtained from public sources and is considered relevant and reliable within the limits of publicly available data. However, the value of the digital assets referred to in this report fluctuates over time, and past performance does not indicate future growth.
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