elcome to another crypto market outlook for the 10th of March!
In this edition, we'll delve into major assets such as US500, DXY, Gold, Bitcoin, and Ethereum, highlighting critical levels and potential trade setups.
From Bitcoin recording a new all-time high to Ethereum testing the $4000 resistance level, and the Fear & Greed Index indicating "Extreme Greed" throughout the week, this article covers it all.
Are you ready?
Today, we will cover the following topics:
- Market Heatmap and Fear and Greed Index
- US500, DXY and Gold Analysis
- USDT.D, Bitcoin and Ethereum Analysis
- Quotes / Advices
- Closing Remarks
Market Heatmap and Fear and Greed Index
To initiate my research, I delved into the analysis by examining the market heatmap, which provided a comprehensive overview of the entire cryptocurrency market.
After breaking above the $63,350 range, BTC soared by 12.67%, reaching a new all-time high!
This parabolic rise influenced the entire market positively, with ETH also experiencing a notable 14.93% surge.
The Fear & Greed Index has consistently indicated "Extreme Greed" throughout the entire week, recording the highest meter signal for the past 2 years at 84.
This indicates that traders are optimistic, likely influenced by the approval of Bitcoin ETFs and anticipation of the upcoming halving.
US500, DXY and Gold analysis
We consistently monitor the US500 index to assess the current market sentiment. This practice is crucial because the cryptocurrency market often exhibits a significant correlation with the stock market, and this interconnection can impact its fluctuations.
US500 is still hovering around the upper bound of the blue wedge pattern, which is acting as an overbought zone. Therefore, there remains potential for bears to step in and drive the price downward.
In the 4-hour timeframe, US500 has been overall bullish, trading within the rising broadening wedge in red.
The bulls are expected to maintain control in the short term, unless the last major low marked in red at $5100 is broken downward. In such an event, a bearish correction towards the $5000 round number would be anticipated.
We consistently monitor the DXY - USD Index as part of our routine analysis. This is crucial because the value of nearly all assets, including BTC/USD, is closely tied to the USD, which serves as the benchmark currency in the financial market.
After rejecting our resistance at $105, DXY traded lower aggressively and is currently hovering around the orange support zone.
If the $102 support level is breached downward, we would anticipate a bearish continuation towards the $101 demand zone.
In parallel, for the bulls to take control again and initiate the next correction movement towards $103.7, a breakout above the last minor high in red at $102.9 is needed.
After breaking above the $2100 resistance zone, Gold surged by 4.35% and is currently approaching the upper boundary of the blue channel and the $2200 resistance level.
To maintain bullish momentum over the long term, a break above $2225 is required.
In the 4-hour timeframe, Gold maintains an overall bullish outlook from a medium-term perspective, trading within the rising channel marked in orange.
To shift momentum in favor of the bears, a break below $2160 is necessary. In such an event, a movement towards the $2100 support level would be anticipated.
USDT.D, Bitcoin and Ethereum analysis
As a standard practice, I begin my analysis with USDT.D as it serves as a critical indicator of traders' sentiment. USDT.D provides valuable insights into whether traders are optimistic, signaling increased investment in cryptocurrencies, or pessimistic, indicating a shift towards stablecoins.
As anticipated in our previous analysis, USDT.D continued to trade lower, and it is currently approaching a massive rejection zone, marked by the intersection of the 4% support level and the lower brown and orange trendlines.
As long as the 3.75% support holds, there remains potential for the bulls to initiate a bullish correction, which would not be good for the crypto market.
In the 1-hour timeframe, for the bulls to take control, a breakout above the last major high in orange at 4.07% is necessary.
Meanwhile, USDT.D remains bearish, with the potential to continue trading downward towards the lower bound of the support at 3.75%.
BTC recorded a new all-time high this week, reaching $70,000. Congrats HODLers!
For the bulls to maintain control from a long-term perspective, a breakout above the $70,000 mark is necessary. In such an event, a continuation towards $80,000 and the upper orange trendline would be anticipated.
In parallel, for the bears to take control and initiate a short-term correction, a break below the last major low at $68,000 is required.
In such an event, a movement towards the $65,000 support level would be anticipated.
After breaking above $3600, ETH surged by 11%. However, it is currently hovering around a strong resistance and round number $4000.
For the bulls to maintain control in the long term, a break above $4000 is needed.
In the 4-hour timeframe, ETH would maintain an overall bullish outlook unless the last major low in green at $3820 is breached downward.
In such an event, a bearish correction towards the $3600 support and lower red trendline would be anticipated.
Quotes / Advices
Crypto trading resembles a sniper's precision. Both demand patience, waiting for the perfect moment to strike.
Like a sniper analyzing wind direction and target movement, traders study market trends and indicators.
Snipers plan their shots carefully, just as traders strategize entries and exits. Both require discipline to stay focused in the midst of volatility.
In crypto, as in sniper operations, timing is everything for success.
Closing Remarks
In summary, BTC surged by 12.67% after breaking above $63,350, influencing ETH to rise by 14.93%.
The Fear and Greed Index maintained "Extreme Greed" at 84, reflecting optimism among traders.
The US500 is hovering around overbought levels, with DXY encountering resistance at $105, and Gold surging by 4.35% above $2100.
USDT.D signaled bearish sentiment, while BTC reached $70,000, requiring a breakout for sustained bullish momentum.
Meanwhile, ETH surged by 11% to surpass $3600 but faced resistance at $4000.
