Is today’s crypto market weak?
Bitcoin (BTC) and the Total Crypto Market Cap (TOTALCAP) both bounced off significant horizontal support levels. The $3 resistance area rejected the Lido DAO (LDO).
According to a BitMEX official quoted in the story, despite multiple “Black Swan” incidents, like the demise of FTX, there is still a lot of interest in cryptocurrencies. Some members of the Shiba Inu Discord group have asserted that Shibarium and a blockchain called Rinia share the same ID.
Crypto market cap surges to a new yearly high
On March 10, the Crypto Market Cap started to rise, and four days later, it hit a new yearly high of $1.12 trillion. Even though the price has since dropped, it is still trading within the $1.04 horizontal band. Since August, this level has occasionally served as both resistance and support, making it crucial.
The price’s future trajectory will depend on whether it bounces or breaks down. If the price closes below that level, a decline to $960 billion might result, while a comeback could lead to highs near $1.20 trillion. An upward advance is more likely now that the daily RSI has crossed over from its bearish divergence trend line.
Price of Bitcoin Regains Ground
The price fluctuation of Bitcoin and TOTALCAP are comparable. The RSI also exited its bearish divergence trend line as the price did from a descending resistance line.
On March 14, BTC established a new yearly high, producing a lengthy upper wick. Then it went back and verified the $24,000 area as evidence. BTC might reach $28,711 if the rise keeps up. On the other hand, if the price falls, it might fall to $21,500.
Late on Friday, after Silicon Valley Bank’s collapse, one of the top 20 lenders in the U.S. ceased operations, bitcoin saw a surge in demand near $19,600. According to data from CoinDesk, prices have increased by over 25% since then, hitting a nine-month high of $26,501 on Tuesday.
Also, a drop in money held in funds does not necessarily indicate that the price increase is weak and unsustainable. The amount of money kept in funds represents a minor fraction of the market as a whole, according to Markus Thielen, head of research and strategy at Matrixport, and other sources of demand are pushing prices higher.
Rejected Lido DAO Price
The Lido DAO price decreased from March 14, when the $3 resistance zone was rejected. The nearest support level of $1.75 may be reached if the decline persists. Yet, if LDO regains its footing, it can try again to move toward the $3 resistance. The trend is seen as bearish as long as LDO doesn’t break out above this level.
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