Bitcoin (BTC) is up over 1000% since March 2020, which indicates that the digital asset has surpassed traditional asset classes such as stocks, commodities and bonds by a huge margin.
Bitcoin’s resilience continues to attract buyers even after the strong growth. Ben Lili, an analyst at Jarvis Labs, said 100 to 1,000 bitcoin whales have added 63,000 bitcoins to their total assets since Feb. 28.
The actions of this group of whales deserve to be monitored because Lilly said: “This category of wallets was the best in the 2017 rally.”
In addition to whales, companies continue to use bitcoin. RushOrderTees, a t-shirt printing and embroidery company, recently revealed that it bought nearly $ 300,000 in Bitcoin and other cryptocurrencies last month and intends to increase the amount to $ 1 million by the end of April.
This shows that even small companies convert some of their own assets from fiat currencies to cryptocurrencies. If the trend continues, this may soon add a new class of investors in the crypto sector.
Let’s take a look at the charts of the 5 best cryptocurrencies that may surpass other currencies in the next few days.
Bitcoin / US dollars
Bitcoin resumed its upward trend on March 13 when it accumulated over its full-time high of $ 58,341. The bears will now try to push the price below the breakout level and capture aggressive traders, while the bulls will try to push $ 58,341 in support.
If the bulls succeed in the bet, the BTC / USD pair can start on their way to the next goal of $ 72,112. Bullish moving average indicates that the bulls are dominant.
If the price falls below $ 58,341, but bounces off the 20-day exponential moving average ($ 53,028), it will mean that sentiment remains positive as buyers build downturns.
However, not everything on the charts looks optimistic, because negative divergence in the Relative Strength Index (RSI) indicates weakening momentum. Sometimes negative divergence is interrupted during a strong bullish wave, but the appearance requires caution, because in some cases it successfully predicts a reversal.
If the 20-day moving average breaks through, it will indicate that supply exceeds demand, and that traders have a rush to make a profit. This could bring the price back to the 50-day SMA ($ 46,047) and then to $ 41,959. Such a deep decline could delay the start of the next bullish phase.
The 4-hour chart shows that bulls are often bought on falls in the 20-EMA. Consequently, the Bulls can try to defend the 20-EMA again. If the price bounces off this support, it is likely that a new test of $ 61,825 will be performed. A breakdown of this resistance can signal the start of the next upstream phase.
Alternatively, if the price falls below the 20-EMA support, it will indicate a possible change in the short-term trend. The next grant is at $ 56,000 and then at 50-SMA. A break below this support would indicate that a break above $ 58 341 could be a bullish trap.
ETH / USD
On March 13, ETH broke above the 78.6% Fibonacci retracement level of $ 1879, but the bulls failed to maintain momentum and challenge the all-time high of $ 2040. This indicates that bears are aggressively defending between $ 1879 and $ 2040. … Resistance zone.
The ETH / USD pair may fall back to the 20-day moving average ($ 1,727). A strong rebound from this support will indicate that the bulls continue to accelerate the downturns. This could increase the chances of reconsideration and a breakout over $ 2040.
If the bulls manage to keep the price above $ 2040, the next step in the trend can start at $ 2614.
Conversely, if the price falls below both moving averages, it will mean that supply exceeds demand. This can keep this pair in a wide range between $ 1289 and $ 2040 for a few more days.
The 4-hour chart shows that the bears have pushed the price below $ 1,879. Now the pair can fall to the guideline of the rising channel. If the price bounces off this support, the short-term trend will continue in favor of the bulls. Buyers will try to resume the bullish move again.