March has been a very eventful month for cryptocurrencies in general. The turmoil generated from the series of banking crises that riddled the month has largely influenced the prices of several cryptocurrencies on the market and has put others at critical support levels.
All of this, while Bitcoin continues to struggle around the $30,000 hurdle. According to the Financial Times, the U.S. money market funds in March recorded an influx of $286 billion, due to the financial crisis in the United States and Europe.
Speculation points to a part of this money trickling into the crypto industry and causing the increase in demand that fueled Bitcoin's excellent performance in March.
The crypto market currently does not look so good.
According to the snapshot above, the cryptocurrency market isn't nearly as bullish as it was only a few weeks ago.
This article will dive into the performance of the two largest cryptocurrencies by market cap: Bitcoin and Ethereum, considering how both have significant control over the rest of the market, at 46% and 18.8% dominance respectively.
Glassnode data shows that a large percentage of Bitcoin's total supply has remained untouched this month.
This could only mean that the cryptocurrency's holders may be refusing to sell their holdings and take profits on the cryptocurrency's massive rally only two weeks ago.
Overall, many have speculated that if the current banking crisis continues, it may attract investors to Bitcoin and further improve the cryptocurrency's chances of rising in price.
In the charts, however, Bitcoin has struggled and failed to hit the $30,000 mark. The cryptocurrency has spent the last few days consolidating, since hitting $28,850.
As illustrated above, the cryptocurrency hit the $29,000 zone (blue line) sometime around Wednesday last week and has been rejected to $27,000 at the time of writing.
However, this is not to say that the bulls have become dormant.
As shown above, the correction on the cryptocurrency isn't very steep, proving that the bulls are still fairly in control, and are defending the $27,000 zone very tightly.
In all, the 20-day moving average (red line) still sits around the $25,400 zone, indicating that the current correction may still have some room for decline.
At the same time, this zone appears to be a fairly strong one that coincides with another strong support level.
This goes without mentioning that BTC appears to be in an ascending channel.
Combining both hypotheses, we end up with the chart below:
In conclusion, the correction of Bitcoin is likely to continue further downwards to the $25,400 zone.
However, the bulls are likely to be in wait for the bears at this zone and will attempt to push the price of the cryptocurrency into a rebound, before another go at the $30,000 zone.
If they succeed, Bitcoin will rally straight up to $30,000 and may even reach $35,000.
Conversely, If the bulls fail, Bitcoin will sink straight down to $21,600.
Like Bitcoin, Ethereum has broken through its 20-day moving average and is sitting comfortably above $1,700.
Just like Bitcoin again, Ethereum was unable to break through $1,860 and has been in a decline for days now.
At the time of writing, Ethereum is still above its 20-day moving average (red line), but may soon sink lower if the bulls refuse to take action.
Ethereum's 20-day moving average coincides with the $1,690 support, indicating that if there is a break below this level, the cryptocurrency is expected to sink straight down to the $1,350 zone.
In all, Ethereum's price action seems similar to Bitcoin's.
Ethereum, like Bitcoin, is in an ascending channel and is facing resistance at the top of the formation.
If after this pullback, the bulls can push the cryptocurrency into a rebound to the upside, Ethereum may rally straight up to the next support zone around $2,000.
Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.