March has been full of ups and downs for the crypto market which is yet to recover to highs experienced in the months of January and February. In the past week, for instance, the Total Crypto Market Cap (TOTAL) dropped from $2.8 trillion level to $2.52 trillion before rebounding to the current level.
The TOTAL currently stands at $2.71 trillion and mirrors a recovering market. This recovery is fueled by the improving macro-financial conditions and shifting market sentiment. As of now, the crypto market has established support at $2.66 trillion. If the macroeconomic conditions keep improving and investor confidence gets stronger, the TOTAL could move upwards.
A move past the resistance at $2.80 trillion could signify stronger recovery. But investor support is crucial for the market to push upwards. If such a move occurs the market could push towards the next resistance at $2.95 trillion or even the $3.09 trillion level.
However, if the current level fails to hold, the market could crash below the support and move towards the next support at $2.52 trillion wiping out all the weekly gains. The current support is crucial to prevent further decline and a bearish trend.
Bitcoin (BTC) Fails To Break Out Above $85K
Following Bitcoin’s consolidation around the $86,000 as reported last week, the price BTC broke downwards to the $78,000 level. However, the price has since rebounded upwards but hasn’t managed to reach above the $85,000 level yet.
However, according to the 4-hour chart Bitcoin is trading at $84,254.02. The current price level mirrors a small recovery of the price on the day but it is crucial for BTC to above the $85K for investors to regain confidence.
The crucial points to watch include the support at $82,952.51 level. If BTC fails to hold above this level, it could move downwards towards the next resistance at $78,619.40. A breach of this level could result in further decline as it would trigger a massive sell-off.
However, if BTC manages to hold above the support and continues to move upwards, it could move towards the resistance at $86,987.87. A breach of the resistance could see the price push towards the next resistance at $90,489.95 or above. This would confirm a price recovery for BTC and trigger bullish momentum towards reclaiming the $100,000 level.
Crypto Market is Still In Fear
According to data shared by BitDuc8, the crypto market Fear and Greed Index reads a value of 24. The current value shows that fear is prevalent in the current market conditions and thus investors are cautious in their moves.
Usually, an index score below 40 on the crypto Fear and Greed Index means that the market is cautious (in fear), while a value above 60 means the market is bullish. Not until the market conditions become favorable, the current sentiment may prevail in the market hindering a recovery.
Factors That May Affect the Crypto Market In The Coming Week
The crypto market seems to be recovering from the import tariffs saga between different countries. Additionally, the U.S CPI data released last week depicted that inflation is cooling off, hence favorable for the crypto market. However, the crypto market is eyeing the decisions set to occur in the U.S Federal Open Market Committee (FOMC) meeting.
According to data on the Federal Reserve Board official site, this meeting is set for March. 19, 2025. If an interest cut is announced by the U.S Fed, the crypto market could spark a surge in the crypto market. Historically, a cut in interest rates has resulted in a pump for BTC, ETH and other altcoins. The crypto market will await the Fed decision to see what happens next.
#blockchain #crypto, #decentralized, #distributed, #ledger
This news is republished from another source. You can check the original article here
