Cryptocurrency Market Analysis for March-April 2019

Tech Analysis

Summary

  • BTC gains more than eight per cent during March
  • BCH makes significant gains of more than 33 per cent across the month
  • ETH gains six per cent overall in value

Bitcoin (BTC/USD)

At the beginning of March the price of BTC against the US dollar started in a range-bound behaviour pattern, seemingly finding resistance at $3,800 and support at $3,750. On 4 March, this range-bound movement was broken when the support levels placed at $3,750 (label A) were broken and the currency took a southward dive to hit a low of $3,615 (label B). This bearish trajectory did not last for long and the bulls pulled the price back to its previous range-bound levels of $3,750 by the close of trading on 5 March. Then, new support levels were set at $3,750 and resistance at $3,880. These levels were a slightly higher level than month-start, suggesting a future breakout trending upwards was in the offing. The market continued to trade sideways until 15 March when the resistance levels were breached and the bulls pushed the price further up to achieve a new high of $4,050 (label C). The market then consolidated – briefly – before a bullish rally came calling again and pushed the price to a final high of $4,089 at month-close (label D).

BTC/USD forecast
At the start of April, the relative strength index (RSI) is currently between 40 and 60, indicating that the market is bound to trade sideways for a period. In the short term, prices are expected to find support at $4,000 and resistance at $4,080.

Bitcoin Cash (BCH/USD)

The BCH/USD pair began March trading against the US dollar at $127 (label A). On 4 March, the three black crows candlestick formation emerged and brought the price to the monthly low of $114 (label B). This signalled the potential emergence of a downward trend for the remainder of the month. However, efforts by the bears to pull the price further down below the $110 mark failed to materialise. Rather, the bulls successfully managed to push the price back up again to a high of $125 by the close of trading on 6 March. The currency then entered a consolidation phase for just shy of ten days before breaking resistance levels on 15 March to achieve a new high for the month of $158 (label C). New support levels were then defined at the $140 mark. At month-end on 29 March, the price rallied upwards yet again, this time even higher to achieve a final monthly high of $169 (label D).

BCH/USD Forecast

Entering April, BCH currently seems to be finding support at the $150 mark and resistance at $170. Traders can take a long position until the price traces back from support levels – or – go short once it pulls back from resistance levels.

Ethereum (ETH/USD)

ETH began March trading at a price of $133 against the US dollar (label A). On 3 March, a death cross formation signalled by the moving averages pushed the price down to a low of $122 (label B). This bearish endeavour was short-lived as a bullish engulfing brought the price back to its previous levels comfortably above the $130 mark. From 7 March until 15 March, the price seemed to be following a descending channel (see chart annotation) which pulled it downwards to a low of $128. This was, however, breached on the upwards when on 15 March the trading pair gained significantly. As seen earlier in the month, the price rallied once again and peaked at a new high of $136 (C). The following few days were marked by a consolidation phase from 17 to 28 March before another bullish rally pushed the price even further up to close off the month at a new high of $141 (label D).

ETH/USD Forecast

At April start, the trading pair is currently consolidating as it prepares for the next price movement. The resistance level is defined at $140 with support placed at the $137 mark. The RSI appears to be trending southwards, seemingly portraying that we may be headed for a price reversal after the rally witnessed in the final few days of March. Traders can take a short position if the support levels are breached.

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