Weekly crypto market analysis (27 March - 2 April)
Crypto Market Evolution
Once again, we have seen mixed developments in the cryptocurrency market. The last week of March did not bring any significant directional movements in this sector, with the most important digital assets oscillating around levels established since mid-month.
Amid a reduction, at least temporarily, of tensions in international financial markets related to regional bank issues in the US, investment assets had a calm week and we saw a slight improvement in investor sentiment overall. In the absence of macroeconomic influences, the evolution of the crypto market was determined by the return to the forefront of legal actions by US financial authorities against players in this sector, with the aim of more tightly regulating crypto market activities compared to other areas of the globe.
This information led to a decline in the market in the first part of the week. However, buyers returned and pushed crypto asset prices back to levels seen in the last two weeks. The market’s resilience to such news may be an indicator of investor confidence that the crypto asset sector will function without major problems, even in the context of restrictive regulations.
Thus, Bitcoin and Ethereum continue to trade around values of $ 28,000 and $1,800 respectively, while crypto assets such as XRP, DOGE, HBAR or XLM have seen increases of over 10% in the recently concluded week.
The total capitalization of digital assets has risen slightly towards the $1.2 trillion zone.
The last seven days have brought fluctuations in the price of Bitcoin without establishing a clear trend. As a result, we find BTC around the $28,000 zone, a level where the largest crypto asset has converged in the last 15 days.
This first quarter of 2023 has brought a growth of approximately 72% for Bitcoin.
The beginning of the week was hesitant for BTC due to news that the US Securities and Exchange Commission will begin a process against some important players in the crypto market. As a result, we saw Bitcoin drop below the $27,000 zone. However, the decline was short-lived and digital assets began to recover losses as the improvement in sentiment in international stock markets was also reflected in the crypto market. BTC returned above $28,000 where it oscillated in the last days of the week.
Technical analysis shows a period of calm in the market after the spectacular increases at the beginning of March. On the upside, we see an important zone at $32,000, a zone from which the price has been rejected three times in the last 2 years. If we reach that level, we may see resistance around that level. In the scenario of a market correction, BTC could drop to re-test the $25,000 zone, a former high that was recently breached.
In the coming days, important macroeconomic data will be announced from the US (the index of managers’ confidence in the economy, unemployment), and potential volatility in financial markets could also impact the price of BTC.
ETH started the week with a decline that brought the price down to $1,700.
However, buyers saw this correction as an opportunity to accumulate and the price rose again. As a result, the Ethereum network token ended the first quarter of 2023 around the value of $1,800. Compared to the beginning of the year, ETH has had an ascent of approximately 50%.
The recent high of $1,850 was not convincingly breached upwards. Therefore, in order to hope for reaching the $2,000 zone and continuing the upward trend from the beginning of the year, we need to see a convincing rise above $1,850.
An event to watch in April for the Ethereum network will be the completion of the Shanghai upgrade. Through this upgrade, ETH tokens deposited for staking in the Proof-of-Stake mechanism will be able to be unlocked for the first time. If users decide to sell these tokens on the market, we may see selling pressure on ETH in the short term. This technical update is expected to take place in mid-April.
Until then, it is very likely that we will see the evolution of ETH going in tandem with the general movement of the market, without major deviations from the systemic trend.
EGLD had one of the least volatile weeks of this year due to low trading activity on the MultiversX network token. The first quarter of this year recorded a price increase for eGold of approximately 30%.
The price chart shows a sideways evolution of eGold in the last 4 weeks, with the price oscillating around the $42-43 zone.
Given that EGLD had one of the lowest price increases compared to the beginning of the year (projects in the Top 50 Crypto-Market-Cap), from a relative point of view, the Romanian project would be well positioned for outperformance in the event of a convincing entry into a bull market. However, as seen in previous years, investor interest in EGLD increases after important announcements and updates revealed by the MultiversX team. Such an event could trigger a consistent price increase.
However, we have seen that during significant corrections, the price of eGold reacts negatively. A possible market decline could see the MultiversX token again below $40.
Limitation of Liability
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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