ZB Market Daily: BTC, DOT & FIL technical daily analysis
Investors risk appetite went on safe-haven cryptocurrency such as USDT and QC due to market uncertainty caused by a senior India government official that reportedly stated that the country will be proposing a stringent law banning the use of crypto even as a holding asset.
From Sources, the bill, if passed, can be one of the world’s strictest actions against crypto and would not only criminalize possession, issuance, mining, trading, and transfer of crypto but also leave a big dent in the crypto market in Asia.
Panic and fear of the unknown grew on the crypto market as many traders liquidated their holdings and long position in bitcoin and altcoins. This resulted to large dump of the crypto market after crypto market capitalization hit all-time high of 1.83 trillion. The market capitalization fell to a low of $1.619 trillion.
Yesterday, BTC opened the trading at $58,764.82. BTC spiked to an early morning high of $60,526.97.
The bulls steered at the all-time high of $61,548.86 to thrust price above but due to the red high impact news mention above, BTC price declined by 7.27%.
The bears broke the middle band of the Bollinger and the EMA crosses simultaneously with a bearish engulfing candle. BTC price plunged to an intraday low of $54,742.33 as more tensions arise due to probability of crypto ban in India.
BTC price regained a support at the lower band of the Bollinger band at a horizontal support of $55078.05.
For the day ahead, BTC is on confined consolidation zone with range bound of $57,846.39 as resistance and $55,078.05 which acts as support. A breakout of this zone above the resistance and EMA crosses could recover yesterday’s losses.
But key level to watch for confirmation of resumption of the uptrend will be for the bulls to break above all time of high of $61548.86.
But on the contrary, if there are spread of crypto market FUD, there could be a potential sell-off but key level to watch will be $55078.05. If this price level is broken, BTC will dip to a low of 51710.43 in the day ahead.
Yesterday, DOT opened the trading session at $36.4306. With high volatility during the Asian open session, DOT price spiked to an intraday high of $38.3632.
Despite the bullish start to the day, DOT declined by 6.67%. Following broader market sell-off. DOT price plunged to an intraday low of $34.0062.
DOT price gained $34.0062 support at the lower band of the Bollinger band.
The EMA crosses acted as a dynamic resistance for the price after the bulls made an attempt to thrust DOT price above the middle band of the Bollinger.
Technically, based on the price action holistic view on the 4-hour chart, we could see lots of rejections to the downside by the bulls for DOT price. This is a sign of the bulls gaining volume and also retails traders buyer’s pressure increased.
Although the MACD is below the signal line while the histogram increased in the negative direction. If the bears fail to break the horizontal support of $33.7915 and dip DOT price to a low of $30.0874.
The bulls will take absolute control of the market, DOT price could rebounced from the support to retest $36.4756. This price level will be a key level to watch out for buy opportunity if the bulls succeed to thrust price above it in the day ahead.
Yesterday it was consolidation open of the trading session for the FIL trading pair. FIL opened trading session at $53.8021 with an intraday high of $56.2399.
Due to indecision from both the bulls and bears, FIL price ranges all through the session despite the broader market were in red territory.
After a brief rally that occurred on the 12th to 14th of March to the upside, FIL price created a bullish flag. This is a potential bullish signal for retail traders.
The EMA crosses acted as a dynamic support for the bullish flag. A breakout of the $56.2399 resistance on the day ahead will launch FIL price to another round of rally. Traders can take a buy position if this scenario plays out
But on the contrary, the bears break a support of $52.3406, this could lead to sell off to a low of $49.0557 where the middle band of the Bollinger can act as support.
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