The cryptocurrency market rises at the time of the latest inflation data that was released yesterday in the United States, some analysts even consider that cryptocurrencies, oil and gold will benefit if inflation remains strong over time . But experts also predict that inflation is close to peaking and they believe that inflation will begin to decline in March, when the Federal Reserve’s QE ends.
Bitcoin at 74,000 USD for the month of March?
Today the majority of the crypto market is trading higher, but its rises at the moment are moderate, being Dogecoin the one that has been having the best performance by carrying a rise that already exceeds 3%, while Bitcoin has turned around and for the moment corrects -0.83%. Ethereum for its part is further behind Bitcoin with a correction that is already around 1.78%.
Analysts and Experts consider that both the crypto world, such as oil and gold, will be the assets that will have a better performance, because they consider that the inflation will remain high at least until the middle of the year. Oil, for example, since the beginning of the year has already had a brutal rise that at the moment is around 3.8%, Meanwhile he gold hovers around 2.24% rise, in the case of Bitcoin after the statements of the president of the Fed, has momentarily moved away from the floors in which it was, to carry a rise that at the moment exceeds 7%, so far this week.
But…Is this enough for us to take corrections for granted in the crypto world? As we have already been commenting in our technical analysis of the main cryptocurrencies, for our bearish bias to become positive, in the case of Bitcoin, the price has to exceed the ceilings that are in the 52231 points, and as can be seen on the daily chart, the price of Bitcoin is currently trading above 43175 points, which It would mean that the crypto asset still has a rise of almost 20% left, so that we can conclude the corrective movement in the cryptoactive.
Updated Bitcoin chart on a daily timeframe
Although the sudden upward movement has been good for cryptocurrencies, that does not mean that serious corrections can still take place, since as can be seen in the graph, the price is still very close to the important bottoms found in the 40143 points, and as most of those who trade with cryptos should already know, just as it goes up 7%, cryptocurrencies can go down 20% in a matter of hours, therefore, if we do not want to see the amount of money that we have in our account, it would be to wait and see if the price eventually breaks the ceilings found at 52231 points, if what we are looking for are upward projections, while if the price breaks the floors found at 40143 points, it would be a good entry signal if we are looking to position ourselves bearish on Bitcoin. In the case of the RSI indicator, we clearly see that the movements of the RSI have been respecting the line that joins the lowering highs of the indicator. It is very important to have at least two signals that confirm that there is a change in the structure of the graph, so that in this way we can safely enter the asset, so as you can see, at the moment there are no signs of change to tell us that the corrections in Bitcoin and cryptocurrencies in general have come to an end.
Ethereum corrects more than Bitcoin
On Tuesday, the Fed chairman gave a small boost to the equity markets and the crypto market, announcing that it would take at least four meetings to decide what to do with the Federal Reserve balance sheet, which is currently hovering around at 8.76 trillion dollars, after saying this, both equities and the main cryptocurrencies took it as rain in May, and began to get out of the corrective movement in which they found themselves. Some will say that cryptocurrencies rose because the internet returned to Kazakhstan and the miners returned to the trade (Kazakhstan is the second country, after the US, to dedicate itself to Bitcoin mining), but the truth is that the crypto market moves For what the Fed chairman says and doesn’t say, just remember the time when the minutes of the Fed meeting were released so that equities and cryptocurrencies suffered two corrective movements that in the case of Bitcoin he got to test his important soils for the first time since he did it in September of last year.
Updated chart of Ethereum on a daily timeframe
That said, as long as the Fed does nothing to stop the upward rally that inflation is having (it plans to raise rates in March), the chances that Ethereum will do well in the coming sessions depends on the price breaking the ceilings that are in the 3872 points. As long as we do not see clear breaks of this ceiling, the chances of seeing corrections in Ethereum are great, since as can be seen on the daily chart of the cryptoactive, the price of the cryptocurrency has not yet managed to break out of the bearish range in which it finds itself. .
Everything goes through the movements that the cryptocurrency makes in the next sessions, both as if it breaks the floors that are at 2851 points, as well as if it breaks the ceilings that are at 3872 points. At the moment we can only wait to see what direction the price of the cryptocurrency decides to take in the end.
Dogecoin does not give up
The considered cryptomeme Dogecoin, continues to fight and is looking to resume its upward path, at least that is how it is seen today, since at the moment it is the best performance it has today.
In its daily chart we see that the price of the cryptocurrency has little left to overcome its last ceilings that are at 0.19 points, if it were to overcome them, its next ceilings would be at 0.22 points, although for us to have a clear certainty that the Corrective movement is over in Dogecoin, the price would have to overcome the ceilings that are at 0.30 points, only by exceeding these ceilings, we could be sure that Dogecoin has nothing to stop it from continuing to set new historical highs.
Updated Dogecoin chart on a daily timeframe
On the other hand, and given that the price has been respecting the great line that joins its decreasing highs, what we expect to happen is that the price will turn downwards once it has come to test said line, and then turn back to the low where we hope that the strength of its floor, which is between 0.15 and 0.12 points, will be enough for the price of the cryptomeme to gain momentum and once and for all overcome that great line that joins its lower highs. It should be reminded that for us to have a clear upward trend in this cryptoactive, the price has to exceed the ceilings that are at 0.30 points, since exceeding them practically eliminates the trend of decreasing maximums in which it is currently.
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