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| By Alex Benfield |
Bitcoin (BTC, Tech/Adoption Grade “A-”) has finally broken out of its 2022 slumber and has now climbed back to where it was at the start of the year.
After BTC crossed above $45,000, it posted a higher cycle high to go along with the higher low it set in February. Even better, Bitcoin appears to be on track to continue its climb in April.
It’s important to note that BTC is climbing despite a very shaky macroeconomic backdrop and targeted attacks on cryptocurrencies. If Bitcoin can continue to gain against the stock market now, it could shed the narrative that it’s correlated to stocks and begin to build on the store-of-value narrative.
Bitcoin is now sitting just above $47,000. As long as it continues to hold above $45,000 for the next few days, it should remain in a short-term uptrend. The next big resistance levels seem to be between $51,000–$52,000, and then $56,000 after that.
These next few days should prove to be interesting. Here’s BTC in U.S. dollar terms via Coinbase Global (COIN):
Ethereum (ETH, Tech/Adoption Grade “A”) is also on the move. It solidified itself above the critical $3,000 level over the past few days and is currently sitting within the resistance zone between $3,200–$3,400.
Ethereum tried to break through that zone yesterday but was unable to close above resistance. The next few days will be a critical test to see if ETH can close and hold above $3,400. After that, look for $3,600–$3,800 as the next zone to be tested.
Here’s ETH in U.S. dollar terms via Coinbase:
Solana (SOL, Tech/Adoption Grade “D”) has been one of the hottest altcoins so far this month. It’s up more than 50% over the past 17 days after posting its cycle low near $78 on March 13.
It’s up more than 5% so far today, trading near $118.
Solana was one of the best performing coins of late 2021 and there’s a chance it can get back to its pre-correction levels. There’s some resistance near $135, but if it can flip that level into support, Solana could make a run toward $170.
Here’s SOL in U.S. dollar terms via Coinbase:
Notable News, Notes and Tweets:
- The U.S. 2- and 10-year yield curves have now officially inverted.
- The CEO of Uber believes crypto has proven itself as a store of value now … could Uber (UBER) become the next company to add BTC to its balance sheet?
- A Grayscale survey now suggests that one out of every four U.S investors (investors, not citizens) owns Bitcoin.
What’s Next
This market is starting to heat up once again. In fact, we could be in the beginning stages of a medium-term bullish move to the upside. Bitcoin and Ethereum have made significant progress, though there’s still resistance ahead on both charts.
If the leading cryptocurrencies can smash through those, altcoins will likely get the green light to shoot off to the races.
And some aren’t even waiting for that. We’re already seeing some big moves from select altcoins, so there are still plenty of trades to take. But things will get truly exciting if BTC and ETH continue to climb, giving us the signal for a true, market-wide altseason.
Stay tuned for more updates on the altcoin market.
Best,
Alex
