elcome to another crypto market outlook for the 17th 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 dipping by 12% to Ethereum hovering around the $3500 support 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.
Following a decline below the $70,000 mark, BTC experienced a 7.7% drop, causing a ripple effect across the crypto market.
This dip influenced the entire market negatively, with ETH also experiencing a notable -7.33% drop.
The Fear & Greed Index has consistently indicated "Extreme Greed" throughout the entire week.
This indicates that traders are optimistic, likely influenced by the approval of Bitcoin ETFs and anticipation of the upcoming halving despite the recent dip.
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 continues to hover around the upper boundary of the blue wedge pattern, serving as an overbought zone. Consequently, there remains potential for bears to intervene and drive the price downward.
In the 4-hour timeframe, US500 has exhibited an overall bullish trend, trading within the rising broadening wedge highlighted in red.
The bulls are anticipated to maintain control in the short term unless the last major low marked in red at $5092 is breached downward. In such a scenario, 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.
DXY rejected the $102 support zone and traded higher.
As long as the $102 support holds, we anticipate a bullish continuation towards $105.
As per our previous market outlook, DXY broke above the last major high at $102.9 and traded higher.
For the bulls to maintain control, a break above the $103.7 resistance is needed. In such an event, a movement towards the $105 resistance is expected.
Meanwhile, DXY would be overall bearish as long as it remains within the falling blue channel.
Following a 4.35% surge last week, Gold has experienced a relatively uneventful week.
To maintain bullish momentum over the long term, a break above $2225 is required.
In the 1-hour timeframe, Gold has been trading within a narrow range forming a symmetrical triangle pattern, as highlighted in orange.
To shift momentum in favor of the bears, a break below $2150 is necessary. In such a scenario, 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 4-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 is closing the week below the $70,000 round number.
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.
As per our previous analysis, the bears took over from a short-term perspective after breaching below $68,750.
As long as the $70,000 resistance holds, we anticipate a continuation towards the $62,000 support level.
After breaking below $3900, ETH dipped by over 10%. However, it is currently hovering around a strong support and round number $3500.
If the $3500 support is breached downward, we would anticipate a bearish continuation towards the $3000 support level.
In parallel, for the bulls to regain control, a breakout above the last major high marked in red at $2690 is necessary.
In such an event, a bullish movement towards the $3900 resistance level would be anticipated.
Quotes / Advices
Crypto trading and hiking both involve risks and rewards.
Just as hikers navigate unpredictable terrains, traders face volatile markets.
Both require strategy, preparation, and adaptability to changing conditions.
Like finding the best path in hiking, traders must analyze trends to make informed decisions.
Both activities offer opportunities for exploration and discovery, whether uncovering hidden trading patterns or experiencing the beauty of nature.
Closing Remarks
In summary, the Fear & Greed Index indicates "Extreme Greed," influenced by positive factors such as Bitcoin ETF approvals.
US500 hovers near a potential bearish correction towards $5000, while DXY eyes a bullish continuation towards $105.
Gold remains stagnant, needing to surpass $2225 for bullish momentum.
USDT.D shows bearish sentiment, nearing a rejection zone around 4%.
BTC's close below $70,000 suggests further downside towards $62,000.
ETH struggles around $3500 support, needing to surpass $2690 for bullish momentum towards $3900.
