The top two cryptocurrencies have had a rough start to the week, but altcoins continue to shine ...
• Bitcoin (BTC, Tech/Adoption Grade “A-”) has found some support at $55,000 as it tries to regain its 21-day moving average.
• Ethereum (ETH, Tech/Adoption Grade “A-”) fell 5% yesterday before finding support at $1,700.
• Filecoin (FIL) is the latest altcoin to catch fire since February.
Bitcoin lost 6% yesterday, sliding from just above $57,000 all the way down to $53,000 before settling in just above $55,000 today.
BTC is trading right around its 21-day moving average after breaking below that level yesterday. The next real resistance level beneath this is $50,000; if BTC fails to regain its moving average, a fall to that level is possible.
The King of Crypto has shown signs of weakness recently, with trading volumes shrinking in recent weeks. It's possible recent bearish action is simply carryover from traditional financial markets, perhaps an extension of increased concern about rising inflation.
Here’s BTC in U.S. dollar terms via Coinbase:
Ethereum had been trading right around $1,800 for more than a week before falling 5% yesterday. The No. 2 crypto found support at $1,700, but it slipped below its moving average. That’s a potential catalyst for short-term bearish action.
If ETH fails to regain that key metric soon, it may slide further, potentially to the next support at $1,600. We haven’t seen sideways trading action like this in some time. But, if we zoom out on the Ethereum price chart, it’s been range-bound since the start of February.
Here’s ETH in U.S. dollar terms via Coinbase:
Filecoin has absolutely exploded since the start of February, blasting off from $22 on Feb. 1 all the way to $50 on Feb. 9. It bounced off its moving average again all the way to $97 on March 17. It fell below $75 yesterday before kicking today off with a 9% gain back to $83.
The peer-to-peer file-storage blockchain-network has been gaining more and more popularity, perhaps due to being added to more crypto exchanges in the last six months. FIL looks poised for another shot at all-time highs soon.
Here’s FIL in U.S. dollar terms via Coinbase:
Notable News, Notes and Tweets
• Bobby Lee, the co-founder and former CEO of crypto exchange BTCC, predicts Bitcoin will hit $300,000 before the next bear market.
• Theta Token (THETA), which we covered yesterday, entered the top 10 cryptos by market capitalization this week.
• Billionaire Mark Cuban, as reported by The Block, is building a digital art gallery for the display of NFTs (non-fungible tokens).
What’s Next
So far this week, we’ve seen the top cryptocurrencies slide slightly while altcoins have decoupled and gone on their own runs.
If Bitcoin and Ethereum keep dropping, they will take the rest of the market with them. However, more sideways trading for the top two digital currencies would open the door for more action in the altcoin markets.
This altcoin season has been headlined by smaller, lesser-known types so far. Blue-chip cryptos have been in a state of limbo, but, ultimately, those big names will determine the direction of the entire market. Traditionally, Ethereum leads an altcoin season, so it’s a little worrisome that ETH has failed to set new highs in recent weeks.
While the top cryptocurrencies are trading sideways, we’ll continue to highlight the top-performing altcoins.
And we’ll continue to answer your burning crypto questions. In fact, Dr. Martin Weiss is setting up a personal blog to answer any questions subscribers may have.
And as soon as you visit his blog, we will rush you a free ticket to our LIVE Q&A session on Tuesday, March 30 at 2 p.m. Eastern, where Martin and Director of Research Gavin Magor will provide the answers to your questions on the spot, no punches pulled.
To get your free ticket now and submit any questions you may have, all you need is a single click here.
We look forward to hearing from you!
Best,
Alex
