Bitcoin increased between 14–28 March by over $ 10,500, which means that in just 15 days, BTC went up by almost 28 %. Such a significant appreciation led to the overcoming of significant, horizontal resistance in the region of $ 44,500, which is signalled by:
a) breakout from the top of the proper triangle formation, about which we have already written several times in the last few weeks,
b) establishing a new, higher peak, indicating a potential shift in market sentiment.
Later increases stopped around $ 48,000, where a supply response appeared a few days ago. However, the slight dynamics of the declines that have continued since then may suggest that this tendency will ultimately turn out to be only a form of correction, after which the BTC rate will return to the upward path.
However, it is possible that before this happens, bitcoin will first return to around $ 42,500 or even lower to the upward trend line.
So it turns out that while the medium-term outlook looks promising, the short-term must consider the risk of at least a slight decline.
The current situation on the Ethereum quotes is also fascinating. The exchange rate of this cryptocurrency has recently increased by almost $ 1,100, which is nearly 44 %.
This increase led to some significant resistance levels being broken, the last of which was at $ 3,400. It also caused the ETH rate to break new higher peaks (surpassing the peaks from mid-January this year), which may signal a potential change in the medium-term trend into an upward trend.
Soon, we could expect another resistance to be re-tested in the $ 3,600 area. However, there may be some downward correction before a further increase. If this happened, the ETH rate could temporarily return to around $ 3,000.
Looking at the bitcoin cash quotes, we notice that the price of this cryptocurrency has been moving in a horizontal trend between 270 and 350 dollars for two months. As a result of the recent gains, however, the upper bound of this formation was overcome, which naturally opened the door to further gains.
The further potential appreciation of BCH is also supported by the fact that the price of this cryptocurrency has been moving in a relatively narrow horizontal trend between $ 350 and $ 395 for several days. Consolidations are corrective formations, which means that statistically, more often, the market breaks out of this type of system in the direction consistent with the previous move.
Therefore, taking into account that in this particular case, a current consolidation is a form of correction after an earlier upward move, there is a statistically higher probability that the market will eventually break out of it, which in turn could drive a further increase in the direction of $ 420, $ 480 or even $ 545.
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