In the March edition of the Crypto Finance House View, we cover the following topics:
Market Review & Outlook
Bitcoin surges close to 2021 all-time highs. Coinbase app breaks down due to surge in demand. Bitcoin ETF inflows offset gold ETF outflows. Things are getting interesting. We expect the current catalysts to remain in place and anticipate increased attention on bitcoin’s demand/supply dynamics in light of the upcoming halving. More on this below.
By Friedrich Herzog
Technical Analysis
BTC has continued its uptrend, clearing resistance at USD 49,000 and 52,000, and is on its way to the all-time high of around USD 69,000. There is a chance of a major retracement (triggered by short-term profit-taking). However, if we go back to the same scenario as in December 2020, when BTC prices exceeded the previous high at around USD 20,000, there was not much price consolidation. In fact, the movement accelerated after prices entered uncharted territory. This is a statement, not an expectation. For a commodity-like asset that is primarily driven by the demand from investor groups with different buying motivations, it is difficult to estimate a price target. Measuring projections could lead to a price of USD 80,000.
In summary, we maintain our scenario of higher prices with levels defined at the all-time high as a resistance and support at the area around USD 50,000. As long as prices trade above USD 50,000, we feel comfortable and view corrections as buying opportunities.
The long-term RSI model has confirmed its long position. RSI readings are currently at 76.4, well above the trigger level of 53. The relative strength of ETH vs. BTC retested the recent high – but failed. BTC has once again shown us who is in charge.
By Michael Zbinden
Crypto Reads: “Chris Dixon – “Read Write Own: Building the Next Era of the Internet”
In “Read Write Own”, Chris Dixon, a prominent figure in the tech world, contends that the idea of an open network conducive to creativity and entrepreneurship doesn’t have to perish. He asserts that it can, and must, be salvaged through the utilisation of blockchain networks. Crucially, Dixon distinguishes blockchain from mere currency speculation, a differentiation he aptly terms “The Computer vs. The Casino”.
By Crypto Finance Editorial Team
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