Crypto Recovery Accelerates to a Fresh Bull Run

• The crypto market has made another significant step in its recovery, as every coin in the top 10 by market capitalization is green today. Both Bitcoin (BTC, Tech/Adoption Grade “A-”) and Ethereum (ETH, Tech/Adoption Grade “A-”) broke above upside targets we set yesterday, moving faster than forecast so far this week.

• Bitcoin is once again a trillion-dollar asset.

• Ethereum managed to clear $1,800 in the last 24 hours and is on the verge of setting new highs. 

Bitcoin is back in a big way so far this week, rising more than 10% in a 72-hour span. It’s gained about 3% so far today to cross back above $54,000, clearing the hurdle at $52,500 we set yesterday.

We’re not completely out of the woods yet, and there’s still a chance we can drop further than the levels set last week. But things are looking pretty good for BTC and the entire crypto market right now.

The next things we want to see from the King of Crypto is another close above its 21-day moving average and then a break above its previous all-time high. If both of these things are accomplished, another big bullish breakout is likely. 

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 a few weeks.

Last week, ETH was hovering around $1,500, unable to break through $1,600 after multiple attempts. But, on March 6, the No. 2 crypto finally broke that level and is now up 20% since then.

Just like Bitcoin, Ethereum is trading above its 21-day moving average and only slightly below its all-time high. Things are looking good right now.

As is also the case for BTC, we’ll be looking for ETH to close above its 21-day moving average and to reach a new high. After that, the sky's the limit.

Here’s ETH in U.S. dollar terms via Coinbase:

Binance Coin (BNB, Tech/Adoption Grade “C-”) was already on a tear before going absolutely parabolic in February. BNB traded around $43 on Feb. 1 before gaining an astronomical 750% in a span of 18 days to reach $360 on Feb. 18.

BNB has cooled some since then, literally reverting back to the mean in the form of its 21-day moving average and trading at that level for the past five days. Since hitting a low of about $200 on Feb. 23, BNB has slowly recovered and is trading at about $273 today after a nice gain of about 13% in the last 24 hours.

Scorching-hot BNB has been one of the best-performing crypto assets in 2021. Interestingly enough, there’s upside from here: It would take a 50% rally from today’s levels for BNB to reach its previous highs of Feb. 18.

Here’s BNB in U.S. dollar terms via Binance:

Notable News, Notes and Tweets

• Will Federal Reserve money-printing have an effect on crypto markets? I think so, and so does Pomp.

• Messari released another good resource for anybody looking to learn more about the non-fungible token (NFT) craze.

• Luke Martin explains why and how Bitcoin and crypto in general are uncorrelated from the stock market.

What’s Next

Things are looking good for the cryptocurrency market, and it seems like we’re on the verge of another streak of new all-time highs.

However, we can’t confirm we’re out of the woods just yet, and our bullish outlook won’t be validated until we break the previous highs. Another close above respective 21-day moving averages for Bitcoin and Ethereum would confirm an end to the slide. But closes above all-time highs will confirm a renewal of the bull run. 

While we wait to see what happens to the industry heavyweights, there are still money-making opportunities in the altcoin market.

Coins like BNB have been heating up again, and signs of another true altcoin season are popping up. When we made the call for altcoin season a few weeks ago, we were only half right; we did see a run of good gains, though it was short-lived. A true altcoin season lasts longer than a couple weeks and is highlighted by a decrease in Bitcoin dominance.

We’re still overdue for a true altcoin season, and those with exposure to the right assets when that happens will reap fantastic rewards. Stay tuned, and stay prepared.

Best,

Alex

About the Crypto Analyst

Alex has been actively researching and investing in cryptocurrencies since 2017. He contributes research and reports to several Weiss crypto publications, with a primary focus on helping to create crypto trading strategies.

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