Last week in the news

BTC reached a new ATH during the previous week at a level of $57.500. Previous week was also important as BTC reached another milestone, as its total market capitalization reached levels above $1 trillion. Good week also for ETH, as currency managed to reach new ATH and psychological level slightly above $2K.

Another currency managed to perform with significant rise during the previous week and to reach its fresh ATH. Cardano (ADA) reached a level of $1.20 on Saturday. This came after Gene Simmons, member of group KISS, gave significant support to Cardano, after officially announcing that he invested $300K in this coin. Soon after his announcement on Twitter, Cardano reached 6th place in capitalization among all other altcoins.

Elon Musk concluded on Twitter on Saturday that money is a mean which makes exchange of goods and services easier, which is general use of money since it has been invented. However, he added “That said, BTC & ETH do seem high”. That was interesting point made by Musk, considering latest Tesla`s investment of $1.5 billion in BTC. It is also unclear what exactly was his measure of BTC`s and ETC`s value?. Anyway, during time of his tweets, BTC hit another ATH above $57K. How much higher from these levels can BTC go? Based on several announcements made by large investors it seems like BTC still have enough space to go even higher. Namely, CNBC reported that one of the largest asset management companies, BlackRock, “started to dabble” in BTC. Rational behind such a business decision is that “interest rates don't work as a hedge” anymore. We have to note here, that this was main reason of other hedge funds and investment companies to diversify portfolios in BTC, as majority of developed countries are operating in environment of zero or negative real interest rates.  At the same time, MicroStrategy Inc. announced its plans to make debt offerings in a total amount of $600 million, in order to raise capital for both further development of the company's business as well as further purchase of Bitcoin. Just as a reminder, MicroStrategy already possesses more than 71.000 Bitcoins.

Crypto market cap

Another new record has been made in total crypto market capitalization during the previous week as it reached $1.722 billion. Additional cash inflow into this market during the previous week was $322 billion. Total inflow since the beginning of the month was $522B and $929B within the first two months of Y2021. Major contributors to this increase are certainly Bitcoin and Bitcoin Cash with additional $157B and $247B respectively, but there is also significant contribution from other altcoins who generally had good performance during the previous week.

In relative terms, total market capitalization has increased by 23% in the last week and 117% since the beginning of this year. Trading volumes had also increased previous week, moving above $360B up to $450B on a daily basis.

Previous week was significant for Bitcoin as it has reached a significant historical milestone by reaching $1.000 billion in total capitalization, with an increase of 17,6% on a weekly basis. Another coin that performed well, with 72% increase in market cap was Bitcoin Gold, followed with 66% increase of Bitcoin Cash. Ethereum added 6.67% to total market cap, while Ripple ended with cash outflow of 12% on a weekly basis.  

The table below provides most recent information regarding market cap and circulating supply for most popular crypto currencies.

BTC heading toward $60K  

Certainly the previous week was very important for Bitcoin as this currency managed to reach new ATH at levels of $57.500, and at the same time to reach market capitalization of $1 trillion for the first time in history. As discussed in previous sections, there is still high interest of hedge funds and investors for this currency, so it would not be any surprise if BTC continues its ride to new ATH`s during this year. Up to which price -  total demand will decide, but certainly during the following short term period, resistance of $60K might be a target.

If we take a look at technical analysis, there is clear uptrend channel formed since January this year, with next resistance level at $60K. Since the beginning of February, RSI is moving in clear overbought zone, but considering strong demand for this currency, there is some probability that trend reversal is still not in store for BTC. It might be expected that resistance at $60K to be tested during next week. In case that there is no strength for higher levels, the level of $55K is the next short term support line, down to $50K. The 0.618 Fibonacci retracements currently stands at $40K which is also a significant support level for BTC.

ETH  still testing $2K

Gains for ETH are continuing since the beginning of this year. Same as BTC, ETH also entered into uptrend channel, managing to reach new ATH and also psychological level for this currency of $2K. However, there has not been enough strength to break this level and make it a support line. Based on high demand for ETH, there might be some probability for this line to be breached in the near future, since ETH is still testing this level. It is interesting that RSI is moving around level of 70, but not above this level, which might indicate that the market is still on the buy side. Since the second week of February, the CME started trading futures on ETH so it is still up to the full effect of the futures market on the value of ETH.

ETH is currently testing resistance level at $2K. By following a channel, clear break of this level would lead to new ATH probably around level of $2.1K. In case of short term reversal, levels to watch are $1.850, down to $1.800.

XRP in short term reversal

XRP lost some of its value during the previous week. Without managing to go above level of $0.63, currency reverted to test support level at $0.5. RSI is currently moving around level of 55, which provides no clear indication that reversal is over. XRP will continue to test at a level of $0.5. In case that it is broken, next short term support can be found at $0.45, down to $0.38. On the opposite side, a break of $0.63 would lead the currency to test next long term resistance at $0.75.

What’s in store for altcoins

Cardano (ADA) managed to reach new ATH, in significant move during Saturday, from level of $0.9 all the way up to $1.20. This move was a market reaction to a tweet from Gene Simmons, who officially announced that he strongly believes in Cardano and supported this currency with a $300K purchase of the coin. At the same time, with a total market capitalization of $28 billion, ADA reached 6th place among all other coins. Currency is currently trading around levels of $1.11, which is modest reversal from previous levels. RSI is still at high overbought level at 85, implying that some decrease in price might be ahead. Next short support level is at $0.97, which was last week`s ATH.

During the whole previous week LTC tested historical resistance level at $230. There is still not enough market strength to break it. RSI is modestly below 70, which might indicate that the overbought side has not been reached.  Next significant resistance level stands at $280. On the opposite side, levels to watch are $210, down to $170.

LINK's continuing uptrend started at the beginning of this year. Since that time, coins have been moving in a channel. A move on the up side would indicate new highs at level of $38.  If currency enters into short term correction, levels to watch are $30, down to $25, which would indicate a break of the channel.

During the previous week DOGE was testing short term support level at $0.05. RSI is moving around level of 50 indicating probability that the down trend is still not over. In case that support of $0.05 is broken, next short term support stands at $0.03. On the opposite side, short term resistance stands at $0.06 up to $0.08, which is also historically the highest level for this currency.

NEO is continuing its strong push up which started at the beginning of February, currently trending above long term resistance at $45. In case that this level is broken, the next important level to watch is at $70. On the opposite side, support level stands at $40, down to $30.

During the previous week Monero (XMR) tested long term resistance level at $270. After not being able to break it, XMR reverted a bit to the levels of $250, where short term support level stands. RSI falls modestly below 70, which might suggest start of short term reversal. Next short term support for XMR stands at $200. On the opposite side, move beyond $270 would lead to historical resistance at $320.

New ATH for Theta at level of $4 has been reached during the previous week. This coin is continuing its strong up trend since the beginning of this year. It is continuing to move in a channel, so by following it, next levels to be tested are $4.25 on the up side and $3.30 on the down side.  Support levels are at $2.5 down to $1.7.

Disclaimer: This article provides exclusive views of the author. It does not in any sense represent a suggestion for trading.

This Market Analysis has been published by a staff writer at XBTFX.

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