Cryptocurrencies Showing Bullish Momentum Again As BTC and ETH Bounce Off the 200 Daily SMA

Posted Monday, March 13, 2023 by
Skerdian Meta • 2 min read

Bitcoin peaked above $47,000 yesterday

Cryptocurrencies were in a long bearish period since November 2021 which lasted until the end of last year. With the start of the new year, we saw a bullish reversal, although the signs were showing late in 2022 as most cryptocurrencies stagnated in a range and were not making lower lows. The bullish momentum continued until the third week of February, with main currencies such as Bitcoin and Ethereum gaining around 60%.

But, the bullish momentum faded toward the end of last month and digital currencies retreated lower, which picke dup pace last week. BITCOIN , saw a significant drop, reaching its lowest value in two months, falling twice below $20,000, hitting a low of $19,600. Ethereum followed a similar path and also experienced a decrease in value as it fell below $1,400, but has returned above $1,500 now.

Bitcoin Daily Chart – The 200 SMA Held As Support

Buyers returning in BTC after two doji candlesticks

The decline in cryptocurrency prices can be attributed to a variety of factors, including remarks from US FED Chair Jerome Powell who raised the terminal top rate, Joe Biden’s budget proposal, and the recent bankruptcy of the Sillicon Valley Bank. The dip in digital coins caused some concern among investors and the industry as a whole, with the total market capitalization of all cryptocurrencies below falling below $1 trillion.

But, moving averagesheld as support on the daily chart for major cryptos. Ethereum bounced off the 200 SMA on Saturday and returned above $1,500. Chris Burniske’s comments, who accurately predicted the 2022 crypto market bottom, are also helping Ethereum. He said thayt crypto assets that compete with Ethereum (ETH) have limited potential to take advantage of network effects. Network effects refer to the value a user derives from a product or service due to the number of other users of that product or service.

So, BTC/USD slipped below $20,000 for the first time since early January but the decline stalled right at the 200 daily SMA (purple). The buyers tried the dwonside a second time but the 200 SMA held as support and afgter two hammer candlesticks uesterday we saw a big bullish candlestick. We are long in BTC from around $20,ooo and are holding our position at the moment.