The Country Manager of Bitpanda Spain, Alexander Zalashared again with Cointelegraph en Español its weekly analysis of the cryptocurrency market according to what happened this week after last week, the cryptocurrency market was mostly in range and Bitcoin closed with a bearish looking candle.
In this analysis, Zala comments that the major cryptocurrencies have been trying to find bottom, and for him it would translate into a reversal momentum after falling at the beginning of the war in Ukraine. “The world community is closely following the conflict, waiting for a resolution. The war between Russia and Ukraine is going to have major economic consequences for the cryptocurrency market and for the financial market in general,” Zala said.
Likewise, Zala comments that most cryptocurrencies started the week on a bearish note, but rose on Wednesday after comments by US Treasury Secretary Janet Yellen were inadvertently published revealing that the impending executive order on cryptocurrency by President Joe Biden would take a constructive approach towards regulating the industry.
“Following this bullish news, Bitcoin soared and the broader cryptocurrency market followed suit, with some altcoins posting nearly double-digit gains,” commented Bitpanda Spain Country Manager.
“On the daily charts, Bitcoin is creating a formation of higher lows and higher highs, indicating that (as long as this trend continues) the price could go even higher. Strong selling pressure formed a large candle at the €40,000 resistance level, which is an important level to watch,” he added.
In another vein, Zala mentioned that momentum indicators are slowly moving into bullish territory, but, Zala points out, any change in the geopolitical situation could send the trend down again.
Additionally, Zala highlights The Cryptocurrency Fear and Greed Index, which shows that market sentiment remains bearish, hovering between fear and extreme fear. “With the escalation of the war between Russia and Ukraine, the cryptocurrency market sentiment has gone from 48/100 last month to 22/100 today,” he stated.
“Historically, times when retail investors have turned bearish have turned out to be good times to buy,” Zala added.
Ethereum failed to break the resistance trend line
Regarding altcoins, Zala describes that last week, the markets remained volatile, although not as volatile as in previous weeks. “Bitcoin’s price rollercoaster had an effect on major altcoins, which also saw similar price movements,” he said.
With Ethereum, Zala described that Ether failed to break out of the resistance trend line and remained in a bearish channel below the €2,500 resistance level. “ETH is now trying to print a higher low, which could change the uptrend. However, the most important support level is at 2,050 euros, the lowest level since January”, he emphasized.
“The buyers are trying to push the resistance trend line of ETH, which is the first hurdle to overcome in order to change the trend from bearish to bullish,” Zala explained.
XRP in accumulation zone
Regarding XRP, Zala has said that the accumulation zone on a price chart is characterized by mostly sideways price action movements. According to him, technical analysts consider these movements to indicate that large investors are buying – or accumulating – a large number of tokens over time.
“The accumulation zone is important for investors to decide whether to buy or sell, in order to see if a price has momentum and in which direction it is going. Ripple volume has increased in the last 3 weeks, while in the last 7 days its price has oscillated between the resistance level of 0.72 euros and the support level of 0.63 euros”, Zala mentioned.
“Increasing volume at a stable price is another typical feature of accumulation zones. A breakout of this range will likely be large-scale,” she emphasized.
ADA bulls continue to struggle to reverse price
For ADA, Zala commented that it rose along with the market in general, but the price is still below the moving averages and the RSI momentum indicator is in negative territory, which, according to him, indicates that the bears are still holding the control.
“Cardano bulls would have to push ADA towards the breakout level at €0.9. A breakout and close above this level could be the first sign that the bulls are back in the game,” Zala said.
Altcoins rose, but the situation remains fragile
Zala mentioned that along with the rise in Bitcoin, the altcoin charts showed big gains. One of them was LINK, which broke the descending trend line and rose to 13 euros. However, Zala commented, the bulls lost momentum at this level and the price fell back to €11.
Lastly, regarding IOTA, Zala described that it found temporary support at €0.63, but continues to face the upper resistance of the descending triangle on a higher time frame. “To change the trend from bearish to bullish, the bulls would have to push the price above resistance,” he stressed.
Overall, Zala concluded that the cryptocurrency market has shown signs of improvement thanks to the bullish movement in the middle of the week. However, the situation remains very fragile and uncertain, as multiple factors are at play. “The war in Ukraine, inflation, and the US executive order on cryptocurrencies are playing a significant role in price developments,” he noted.
Disclaimer: This material is intended as a commentary on economic or market conditions and does not constitute financial analysis or recommendation. The analysis presented here corresponds to the Country Manager of Bitpanda in Spain and under no circumstances is an investment recommendation by Cointelegraph. Anyone, before investing, must carry out their own research and is responsible for their own decisions.
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