Academy Trading Ideas Article

BTC Rise Lacks Significant Volume, Further Rebound Needs Steady Hold at $6.3-$6.4K: Crypto Market Daily

2020.03.31

Cryptocurrency markets are seeing little volatility this morning, Tuesday, March 31. Top cryptocurrency Bitcoin (BTC) is up about 3 percent on the day, holding yesterday’s gains after faltering over the weekend. The coin is trading around $6,500.

Ether (ETH) is trading sideways over the past 24 hours, seeing just 1 percent growth to trade around $130 by press time. 

Ripple’s XRP has seen even less change on the day, down just a fraction of a percent, trading around $0.173.

BTC stagnates with weak volumes

1H chart BTC/USD Perpetual Swap data. Souce: OKEx.com

Yesterday, March 30, BTC started an hour-level rebound after a short-term consolidation above $5,800. As the price touched $6,600, there was a clear stagnation signal, and now the price is moving around the $6,500 range.  

OKEx’s market analysis team believes that the rebound from last night to this morning was not accompanied by significantly increased volume; the bullish trend continued for several hours until there was a clear resistance at $6,500. This proved that the $6,000-$6,400 area has fewer lock-in positions, and a small amount of active buying funds can push the price up. 

However, the single-hour inverted hammer pattern at 4 a.m. HKT indicates that the resistance strength of the intensive trading area around $6,500-$6,900 is still strong.

$5.8K proves to be short-term bottom

Bitcoin’s 1-day chart above is showing that $5,800 has proved to be a short-term bottom. Although the bulls are trying to push the price up to the MA(30) point, which is around $7,000, there is not enough volume to breakout of the current level.

The two conditions shown on the chart above are the most possible moving routes for the price in the future. However, the OKEx team believes that it’s not easy to directly break $7,000 as the market needs more new funds. That being said, the one thing that never changes in this market is that it is changing all the time.

Condition two on the chart is a big possibility as it gives more time to consolidate, meaning the breaking strength will be more powerful. 

Investors are reminded that if the trend can’t break through and stand firm at $6,500, it needs to guard against the risk of falling back. Given that current selling activities are also relatively weak, the support below can temporarily focus on $5,850.

Resistance and support levels

  • Short-term resistance: $6,500       
  • Medium-term resistance: $6,650
  • Short-term support: $6,400
  • Medium-term support: $6,000

ETH stuck below $134, but bear volumes are weak

1H ETH/USD Perpetual Swap data. Source: OKEx.com

ETH has shown a certain volume pattern before hitting the hard resistance of $134. However, after the price stagnates below $134, trading volume rapidly shrinks. The price has now fallen slightly above $130. 

As selling volumes are not active at the moment, bulls are able to push the price above $134 just with a relatively large amount of volume. It’s possible that after breaking and stabilizing at $134, the price of ETH is likely to test $145.

Otherwise, investors should focus on the first support level around $130 and, if it falls below, the trend will continue to test $123.

 

Resistance and support levels

  • Short-term resistance: $134    
  • Medium-term resistance: $145
  • Short-term support: $130          
  • Medium-term support: $123

XRP continues to face pressure at $0.1750

1H XRP/USD Perpetual Swap data. Source: OKEx.com

 XRP’s rebound energy gradually weakened when it did not touch the strong resistance level around $0.1811. Therefore, the pressure at the resistance of $0.1750 was in line with expectations. The first support below is at $0.1700, if it falls below that. Otherwise, XRP will continue to find support at $0.1650.

However, as the chart above shows, the selling volume of every dump after a rebound is much higher than the rebound volume. This means that if the price can’t break the current hard resistance, it’s easy to have a rapid fall. Then it’s possible to test support around $0.1610.

Resistance and support levels

  • Short-term resistance: $0.1750
  • Medium-term resistance: $0.1820
  • Short-term support: $0.1650    
  • Medium-term support: $0.1610


Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.


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