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elcome to another crypto market outlook for the 31st 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 hovering around the $70,000 resistance, to Ethereum maintaining a narrow range, and the Fear & Greed Index signaling 'Greed' for an entire 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 rejecting the $70,000 resistance, BTC has been hovering within a narrow range between $68,500 and $71,600.

This ranging week got reflected on the entire crypto market, as we can see a mixture of bearish and bullish trends.

7 days heatmap showing a mixture of red and green with BTC up by +9.3% and ETH up by +8%.
Crypto 7-Days Heatmap

The Fear & Greed Index has dropped from "Extreme Greed" to “Greed”, indicating that traders are still optimistic but not with the same intensity as before.

This is quite normal after a massive surge.

fear and greed index signaling "greed" for the entire week.
Fear and Greed Index

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 weekly chart hovering around the upper bound of the wedge pattern.
US500 Chart - Weekly Timeframe

The US500 remains near the upper limit of the blue wedge pattern, indicating an overbought condition.

While the bulls maintain dominance, we expect a continuation towards the $5500 level.

US500 4H chart overall bullish trading within the rising channel as long as the last major low at $5180 holds.
US500 Chart - 4H Timeframe

In the 4-hour timeframe, the US500 is still overall bullish, trading within the rising broadening wedge highlighted in red.

The bulls are expected to maintain control in the short term unless the last major low marked in red at $5180 is breached downward.

Meanwhile, we anticipate a continuation towards the upper red trendline and $5375.

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 daily chart hovering within $102 support and $105 resistance.
DXY Chart - Daily Timeframe

As per our previous analysis, DXY has remained bullish, and it is nearing the $105 resistance level, signaling a potential bearish reversal in the near future.

DXY 4H chart overall bullish trading within the rising wedge pattern.
DXY Chart - 4H Timeframe

For the bears to take over and initiate the short-term correction phase towards the lower blue trendline, a break below the last low in orange at $104.3 is needed.

Meanwhile, DXY would remain bullish and could still trade higher to test the $105 resistance and upper blue trendline.

Gold daily chart overall bullish trading within the rising channel and currently breaking above $2225 resistance.
GOLD Chart - Daily Timeframe

Gold remains overall bullish, trading within the rising channel outlined in blue.

Currently, Gold is breaking above the $2225 resistance, so we anticipate further upward movement towards the $2280 resistance and the upper bound of the channel.

Gold 1H chart showing the last low at $2217 that we need a break below for the bears to take over.
GOLD Chart - 1H Timeframe

In the 1-hour timeframe, as per our previous analysis, Gold broke above the descending red channel and traded higher to reach our target around the $2225 resistance.

The bulls will continue to maintain control unless the last low in blue at $2217 is broken downward.

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.

USDT.D daily chart hovering around a massive support zone between 3.75% and 4%.
USDT.D Chart - Daily Timeframe

USDT.D is currently retesting the support zone between 3.75% and 4%.

As long as the support holds, we anticipate the bulls to take control soon, which wouldn't be healthy for the crypto market.

USDT.D 4H showing that the last major high at 4.18% that we need a break above for the bulls to take over.
USDT.D Chart - 4H Timeframe

In the 4-hour timeframe, for the bulls to regain control and confirm the start of the correction phase, a breakout above the last major high marked in red at 4.18% is needed.

Meanwhile, USDT.D remains bearish, with the potential to continue trading lower within the support zone until 3.75%.

BTC weekly chart hovering around the $70,000 resistance.
BTC Chart - Weekly Timeframe

BTC had a relatively uneventful week, remaining within a narrow range between $68,500 and $71,600.

For the bulls to maintain control from a long-term perspective, a weekly candle close above the $71,000 resistance is necessary.

BTC 4h chart hovering within a narrow range between $68,500 and $71,600.
BTC Chart - 4H Timeframe

For the bulls to regain control in the short term, a break above the upper bound of the range marked in red at $71,600 is required.

In parallel, if the $68,500 mark is broken downward, we will expect the beginning of the bearish correction phase towards the lower red trendline.

ETH daily chart hovering within a range between $3500 and $3600.
ETH Chart - Daily Timeframe

ETH has also been hovering within a narrow range this entire week.

For the bulls to regain control and initiate the next impulse movement towards $4000, a break above $3680 is needed.

ETH 4H chart showing that the last high at $3680 that we need a break above for the bulls to take over.
ETH Chart - 4H Timeframe

In parallel, if the last major low in red at $3430 is broken downward, we anticipate the start of a correction phase, potentially triggering a bearish movement towards the $3200 demand zone.

Quotes / Advices

To trade like a pro in crypto, employ strategic risk management, diversify your portfolio across different assets, and stay informed about market trends and news.

Develop a solid trading plan with predefined entry and exit points, and stick to it religiously.

Avoid emotional decision-making by setting aside predetermined trading capital and using stop-loss orders.

Continuously educate yourself, adapt to changing market conditions, and never stop refining your trading strategy.

Closing Remarks

In summary, the crypto market reflects a consolidation phase, with BTC ranging between $68,500 and $71,600, displaying mixed trends.

The US500 index leans bullish, targeting $5500 with support at $5180.

DXY's bullish stance towards $105 contrasts Gold's resistance at $2225.

USDT.D's rejection of support suggests an upward trend towards 5%.

Bitcoin stabilizes between $68,500 - $71,600, vulnerable to a shift towards $50,000 or $71,600.

Ethereum's recovery above $3680 hints at a bullish trend, backed by support at $3200.

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