Cryptocurrency Analysis

[IFX_Selena]

Cryptocurrency Market Review: March 4, 2021. Downward correction continues

Cryptocurrencies are still correcting downwards after bitcoin rebounded from its resistance level yesterday. From a technical point of view, most coins have a chance to go down further. Let's define some possible scenarios of further price movement for today.

Yesterday, bitcoin bounced off resistance located at the 61.8% Fibonacci level (near 52,068.06) and then declined. Now the price continues to go down towards the nearest support level of 48,178.13. However, its bearish run is limited. When the price reaches this level, it will most likely turn around towards the upside, approaching the 61.8% Fibo level. As an alternative, the price may break through the support level of 48,178.13 and then head for the next target at 45,553.17 (next red dotted line).



After rebounding from the 551.56 resistance level, Bitcoin Cash returned to the 465.48 - 508.94 range and reached its support level, as expected. If the price breaks through the level of 465.48, the way to the next lower level will open. An alternative scenario for BCHUSD implies a recovery within a sideways range of 465.48 - 508.94.



Ripple's technical levels have changed slightly. The level of 0.4539 now acts as local resistance. Its breakout has repeatedly turned out to be false. Therefore, if the market continues to decline, XRPUSD will have every chance to go down towards the support level of 0.4071. If the pair breaks through the current resistance level of 0.4539 and consolidates above 0.4769 (blue line segment), we will most likely see its further rally.



As for Ethereum, the situation is rather uncertain from a technical point of view. That is why I do not recommend entering the market. During yesterday's rally, the pair failed to reach the resistance level of 1697.27 (red dotted line). As a result, it returned to the range of 1519.84 - 1572.74. If bitcoin continues to lose in value, it could drag ETHUSD down to the level of 1436.48. In case the support area of 1519.84 - 1572.74 resists, the pair is likely to approach yesterday's highs.



Litecoin is also trading under pressure, trying to break through the lower border of the narrow range of 186.48 - 195.06. If the price still overcomes this border and consolidates below 186.48, the pair will most likely move towards the next support level of 171.25.






Ekaterina Kiseleva
Analytical expert
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