• The cryptocurrency market is back to lofty levels reached at the peak of the last run, with sights set on new all-time highs.
• Bitcoin (BTC, Tech/Adoption Grade “A-”), after falling 25% to a Feb. 28 low, is now just 2.5% from its all-time high.
• Ethereum (ETH, Tech/Adoption Grade “A-”) is lagging Bitcoin slightly, but it too is close to a new all-time high.
Bitcoin is back in a big way so far this week, up more than 16% in a 96-hour span. It’s gained about 3.5% so far today and is trading just under $57,000.
The King of Crypto has posted six straight green candles in a row, heating up for a run to new all-time highs. Bitcoin has now recorded three closes above its 21-day moving average, confirming a stop to last week’s slide. Sights are set on the previous high of $57,500 and resistance at $60,000.
Here’s BTC in U.S. dollar terms via Coinbase:
Ethereum has had one heck of a week so far after showing signs of weakness for an extended period.
Last week, ETH hovered between $1,500 and $1,600, unable to break through to the upside after multiple attempts. On March 6, though, ETH popped and is now up 20% since then. Just like Bitcoin, Ethereum is now trading above its 21-day moving average and only slightly below its all-time high. ETH is still slightly lagging BTC, but it’ll be interesting to see what happens to the former when the latter breaks its all-time high.
Here’s ETH in U.S. dollar terms via Coinbase:
LiteCoin (LTC, Tech/Adoption Grade “B-”) had a rough go during the correction, dropping from highs near $245 all the way to about $158 on Feb. 23. That’s a loss of more than 35%. Since then, LTC had failed to break above its 21-day moving average — until yesterday, when it gained 6% to cross above the key metric.
LTC is up about 15% in a five-day period but still has a long way to go to get back to recent highs. The level to watch in days ahead is the recent high of $245; a break above that level should bring out the bulls.
Here’s LTC in U.S. dollar terms via Coinbase:
Notable News, Notes and Tweets
• Michael Saylor’s MicroStrategy Inc. (Nasdaq: MSTR) holds more Bitcoin than hundred-billion-dollar-market-capped Coinbase.
• BlockTower Capital’s Ari Paul offers a healthy reminder to keep your eyes on the long-term prize.
• Ritholtz Wealth Management’s Michael Batnick provides today’s inflation check-in.
What’s Next
Well, most assets have now held above their 21-day moving averages for three-plus closes, signifying an end to the recent pullback. March has proven to be a great month for the crypto recovery so far.
We’re also close to new all-time highs on the top two cryptocurrencies. When Bitcoin and Ethereum get there, we’ll officially be in a new short-term bull cycle.
This rest of this week should prove to be fascinating for the market, as we could break previous highs sooner than expected. Some analysts are already calling for $75,000 BTC before month’s end, though that’s a bit of a strong take.
Indeed, now seems like a good time to take a deep breath and appreciate how far the market has already come in the last six months. And, at some point, the crypto market will endure an extended break — something much more significant than the recent retracement. We always have to be prepared for that type of scenario.
The most important thing is we remain bullish on Bitcoin long term and cryptocurrency in general. For now, like everyone else, we’ll wait to see what direction BTC takes us in the short term.
Best,
Alex
