Bitcoin and Ethereum face important resistances at $50,000 and $3,500
The cryptocurrency market takes a break on Wednesday, after the rally experienced since last weekend, when Bitcoin managed to break through the $46,000 resistance. Experts are still betting that the advance will continue, as positive signals are piling up on the bulls' side, but the queen of cryptocurrencies is still hesitant to break the most crucial resistance level at $50,000, as the 'bulls' keep a close eye on this price level.
Meanwhile, Ethereum experiences a similar situation and is struggling with the $3,500 control zone, which it has approached this week. The rest of the market leaves slight declines in most tokens, that experts believe falls within a healthy short-term correction after recent rises, with the notable exception of Terra's LUNA token, which remains at all-time highs of $105. Total capitalization remains above the $2,1 billion mark.
Experts indicate that the market is taking a break with its two major tokens facing significant resistance levels. "If Bitcoin´s price breaks this point, it will almost certainly be a bull run that will push the cryptoasset towards the $60,000 mark, the next significant resistance point," commented Neil Wilson, analyst at Markets.com.
Fundamental, technical and blockchain data analysis all point in this direction, as all developments around digital currencies are positive. Charts show that a continuation of the upside is highly likely, and whale-moving data could not be more bullish. Also, if there was any doubt, the price action shows strength after Satoshi Nakamoto's coin erased all of its 2022 losses, up 35% and making new yearly highs.
Another highlight is that since Russia invaded Ukraine on February 24th, Bitcoin addresses holding 1,000 to 10,000 tokens, the so-called 'whales,' have soared 9%, according to data from blockchain analytics platform, Santiment. Currently, there are more than 2,200 addresses holding 1,000 to 10,000 BTC, the highest level in 12 months. This phase of whale accumulation is usually followed by immense price momentum.
ETHEREUM, AIMING FOR THE $3,500 LEVEL
As for Ethereum, it continues to trade above the $3,000 price level. "Much of that momentum is due to the hype of NFTs and institutional traders pocketing Ethers, as they know that other tokens considered Ether killers are unlikely to have market penetration equal to this blockchain." Wilson pointed out. For example, if one looks at NFT transactions in Ethers, they are still gigantic compared to others like LUNA and SOL (Solana).
The news that the Ronin network, the blockchain that runs Sky Mavis' popular Axie Infinity NFTs game Axie Infinity, has been hacked, with some $625 million in funds stolen by criminals, weighs on the market on Wednesday. As explained by several media outlets, the attack occurred on March 23rd, but the alarm bells were not raised until a week later.