Bitcoin and Ether Market Update March 4, 2021
Total crypto market cap added $63 billion to its value for the period since Monday and now stands at $1,512 billion. The top ten coins are all in red for the last 24 hours with Chainlink (LINK) and Binance Coin (BNB) losing 5.1 and 4.7 percent of their value. At the time of writing bitcoin (BTC) is trading at $49,193 on the Bitstamp daily chart, ether (ETH) is hovering around $1,556.
Bitcoin closed the month of February at $45,160 after jumping up from a daily low of $43,000 on Sunday. This resulted in another 37 percent added to the coin’s market cap on a monthly basis.
On Monday, the BTC/USD pair started trading on positive territory and eventually managed to break the 4 days long losing streak by forming a huge green candle to $49,674. By doing this is moved above the short-term EMAs (20 and 26 days) and avoided further decline.
The second day of the workweek came with a pullback to $48,500, but not before testing the newly established support in the $47,000-47,500 area. The 24-hour trading volumes were still relatively low compared to the previous few weeks as many traders continued to remain cautious about the potential upside reversal.
The mid-week session on Wednesday was again a good one for bulls. The leading cryptocurrency formed one leg up and climbed above $50,000 for the first time since February 25. It peaked at $52,640 during intraday, also breaking into the next supply zone. The trading activity, however, was not backed by enough volume, and BTC start losing momentum in the evening part of the session eventually closing at $50,423. It still registered huge gains compared to the previous session.
As of the time of writing this piece, BTC/USD is at $49,193 struggling to surpass $49,500 – a solid S/R level from early February.
The Ethereum Project token ETH hit a weekly low at $1,285 on February 28 and was already trading 37 percent lower compared to its $2,045 peak registered on February 20. It managed to recover to $1,422 by the end of the session, which corresponded to an 8.3 percent increase for the second month of the year.
On Monday, the ether followed the example of Bitcoin and rapidly started moving upwards. It closed the day at $1,573 adding 10.6 percent.
The coin erased half of if its gains the very next day by correcting its price down to $1,486, right below the 26-day EMA. The $1,590 – $1,610 area was the next major obstacle in front of bulls. It first acted as resistance back in early February, then again was a trouble area for sellers during ETH’s freefall last week.
On Wednesday, March 3 made a sharp turn North reaching the 200-day EMA on the 4-hour chart at $1,660, also above the already-mentioned resistance area. However, the momentum was not strong enough and bulls easily gave back their gains ending the trading day at $1,570.
The ETH/USD pair is trading at $1,560 in the early hours of trading on Thursday after it was once again rejected around $1,620.