Market Analysis March 15th, 2024
Bitcoin surged to a new record high, surpassing $73,000 on March 14th, 2024, breaking its previous milestone of over $69,000 established just a week prior. This milestone carries significant weight for traders, marking a breakthrough after over two years since its last peak. Bitcoin isn’t alone in this surge; Ethereum (ETH) also soared, breaching the $4,000 mark for the second time in two years on Monday. Although this surge wasn’t sustained throughout the day, both BTC and ETH attracted more attention than other tokens due to a stronger consensus on their narratives. The approval of ETFs and institutional interest propels these assets, fostering considerable positive speculation.
From a technical viewpoint, Bitcoin recently broke its upward trend, indicating potential robust growth with no visible resistance ahead. Support is identified around 40,000 points in case of an adverse reaction. A positive volume balance fortifies the currency in the short term, while an RSI above 70 signifies strong positive momentum. However, a high RSI may suggest overbought conditions, especially for major stocks. Overall, Bitcoin is considered technically positive for the medium to long term.
Similarly, Ethereum experienced an all-time high, although the momentum wasn’t sustained as many traders anticipated. The Ethereum ecosystem is preparing for the Dencun upgrade on March 13th, integrating numerous Ethereum Improvement Proposals (EIPs), including EIP-4844, which introduces “proto-danksharding.” Ethereum has broken its rising trend in the medium and long term, signaling strong growth and continued price elevation. Like Bitcoin, Ethereum’s RSI above 70 suggests strong positive momentum but also hints at potential overbought conditions and a possible correction.
Typically, other altcoins follow suit when “blue-chip” coins like Bitcoin and Ether exhibit strength. It’s crucial to monitor these assets as well. This week, assets like XRP, NEAR, TON, LINK, and AVAX saw rises of up to 19%. Although more speculative, these assets play a vital role in the crypto ecosystem, and their performance reflects strength within the broader market.
The recent surge in BTC is primarily attributed to persistent ETF inflows since early February. However, considering BTC’s recent rapid climb post its ATH, a consolidation phase around the $70k level akin to March-October 2023 around $30k seems likely. Nevertheless, with many US institutions and individuals still gaining access to BTC ETFs and ample liquidity from the fiat world, further upside potential remains.
The consensus view regarding the ultimate high price in this cycle ranges from $100k to $200k. From a technical standpoint, the next major resistance level for BTC lies at $100k. Utilizing the maximum leverage from the previous cycle, the peak ratio of the total crypto market cap to the total stablecoin market cap was about 23. With $147 billion in stablecoins currently, this suggests a maximum crypto market cap of $3.4 billion, translating into another 24% upside for the entire crypto market cap. Thus, crossing the $90–100k threshold is crucial, with $150k becoming feasible thereafter.
As discussions about the second phase of the bull market emerge, caution regarding short-term pullback risks is warranted. The Crypto Fear & Greed Index has surpassed the levels of November 2021 and is only lower than those of late December 2020/early 2021 in comparison to the previous cycle. Moreover, the Google trend index is rapidly increasing. Considering the major inflow to BTC now comes from TradFi ETFs, the third indicator, download numbers of crypto exchange apps in app stores, may not be as effective. Taking profits, hedging via perpetual contracts, or setting limit orders at lower prices are prudent strategies.
In other news, former US President Mr. Donald Trump has secured the Republican nomination. Among the significant potential policies, if elected, is the widening of the budget deficit, implying further debasement of the US dollar. This would solidify Bitcoin’s status as the most effective hedge against fiat debasement. Additionally, there should be more clarity regarding regulating crypto exchanges, stablecoins, etc., in 2025, which is also positive for the crypto community.
My Tips on Breaking into Crypto Professionally in the Bull Market
It’s an exciting time to be involved in crypto, both personally and professionally!
When the bull market hits, and crypto starts booming, many people think about finding a job in the space. Here’s what I look for in newbies besides just being hardworking and intelligent:
- Keep Learning: It’s okay if you feel lost at first. But if you’re at an exchange, you should really keep tabs on the top 30 tokens and know their fact sheets inside out.
- Believe in Yourself: Being humble is great, but don’t hold back your wild ideas. Shout them from the rooftops! We’re all about novel concepts, no matter how out there they might initially seem. A crazy idea plus a solid plan makes you a superstar.
- Do Good Stuff: Do the right things with a good approach. If the heart’s in the right place, trust me, it makes the whole adventure way more fulfilling. That’s the gospel I live by.
- Lead, No Matter What: Think and act like a leader,, whether on your own or leading a team. Plan how to use your time wisely, focus on the important stuff, and always try to stay a few steps ahead. One solid trick is to put a price tag on an hour of your time. Stick to activities that’ll out-earn that rate. You’ll find it’s a game-changer for dodging time-wasters.
- Boost Your Tech and Finance Know-How: You need to know the basics of coding and finance even if your job doesn’t require them. Learn to use tools that can make your life easy. If you’re into product management or data analysis, make sure you make friends with GPT.
About Me
It was fantastic to chat with WU Blockchain about BRC20, BingX’s strategy in 2024, and my professional background. Check out the article linked below!
Disclaimer: BingX does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to the company. BingX is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the article. Not financial advice.
