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FameEX Daily Technical Analysis | On-Chain Data Shows BTC Whales Are Taking Profits, Causing Price Rise to Hit Resistance

2023-03-31 15:52:35

Yesterday, the major cryptos exhibited price fluctuations between -1.53% and 1.28%. BNB, showing a reversal with the strongest trend, rose 1.28%. In contrast, SOL fell 1.53% with the weakest trend. BTC and ETH, two of the leading cryptocurrencies, fell 0.84% and climbed 0.47%, respectively.

However, it is worth noting that due to BTC’s recent surge, traders and whales are taking profits according to the on-chain data, which may create resistance to future price rises.

According to the 4-hour trading cycle depicted below, although the long dominated the market trend yesterday, it failed to keep moving upward, thus, the price fell back to the consolidation range. The latest resistance price is $29,814, and the support price is $26,508. Before the BTC price is out of this range, sideways will remain for a certain period. From the perspective of SMAs, the MA7, MA25, and MA99 displayed a long trend, indicating that the short-, medium-, and long-term trends are favorable to the long market. However, the long turned weak. Therefore, it is recommended to pay close attention to whether there is a reversal in the subsequent trend.

Overall, the long-term market is slightly favorable to the long. Therefore, it is recommended to hold several long positions at present and enter into further orders when the trend is more clear.

Source: TradingView

During yesterday’s trading session, all three major U.S. stock indexes rose. The Dow Jones index edged up 0.43%, showing a relatively weak trend. Similarly, the S&P 500 index was up 0.57%. The Nasdaq index was relatively strong, rising 0.73%. Meanwhile, two of the leading cryptos, BTC and ETH, fell 0.84% and rose 0.47%, respectively.

The U.S. jobless claimed a rise by 7,000 last week, higher than market expectations. There was no sign yet that tighter credit conditions are having a substantial impact on the U.S. labor market.

With the decline in energy prices, Germany’s inflation slowed significantly in March, still higher than market expectations, which increased the pressure on the European Central Bank (ECB) to further tighten the monetary policy. Meanwhile, Spain’s inflation in March hit the minimum annual increase for more than 1 year, lower than analysts’ predictions.

The ECB has previously made it clear that future rate hikes will rely on economic data. To curb inflation, the ECB has raised the deposit rate by 350 basis points to 3% since July last year.

The Federal Reserve (Fed) raised rates last week by 0.25% as expected by the market. However, given the turbulence in the banking sector, the Fed is cautious about the outlook.

Source: Yahoo! finance

Over the past 24 hours, there has been a total of $73.74 million in long liquidations and $49.70 million in short liquidations, resulting in a net long liquidation of $24.74 million. 34,948 traders experienced liquidations in total in the last 24 hours. BTC, ETH, and ARB displayed liquidations of $54.86 million, $23.35 million, and $5.35 million, respectively, ranking the top 3 cryptos in liquidations.

The Fear & Greed index modestly advanced to 60, still over the significant threshold of 50. This suggests that the market has become cautious optimism. However, due to the unclear market trend, it is recommended to observe the subsequent trend.

The Bitcoin Ahr999 index slightly rose to 0.82, which is above the support level of 0.45 but below that of 1.2. This shows that the short-term trend becomes strong, but the long-term trend is still a bear market. Therefore, It is not recommended to buy the dip in batches. However, purchasing small amounts through dollar-cost averaging (DCA) may be a viable strategy.

According to the above analysis, the short- and medium-term trends favor the long, and the overall market is optimistic. Therefore, we recommend periodically buying with a fixed amount and selling them gradually as the market rises.

Source: Coinglass

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.

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