- Bitcoin and Ethereum showed bullish market structure on the 12-hour chart.
- So far, key retracement levels have been defended, but a retest cannot be ruled out yet.
Bitcoin [BTC] and Ethereum [ETH] Trading continued within a short-term range. They had a bullish bias on the higher time frame price charts and the whales were accumulating both assets at a rapid pace.
A recent AMBCrypto report highlighted that this accumulation could continue for a little longer. Bitcoin has a large amount of liquidity nearby, which could thwart any breakout attempts in either direction.
Bitcoin loses momentum and sees buying pressure
Source: BTC/USDT on TradingView
The Fibonacci retracement level plotted for the rally from $50,500 to $73,7,000 shows that the 50% retracement level was tested as support in mid-March.
There was a reasonable response, and at the time of writing, Bitcoin was trading at $50,000.
However, the RSI on the 12-hour chart is only 57, indicating bullish momentum but not a noteworthy strength.
Chaikin Money Flow was +0.01, but needs to be above +0.05 to indicate significant capital inflows.
The market structure on the 12-hour chart was bullish. The market structure will turn bearish if BTC falls below $60.7.
Source: High Block
The liquidation level heatmap showed a significant concentration in the $74,000-$74,800 zone. On the south side, there are also intense liquidation levels between $60,000 and $60,7000.
Close to the current price, the $68.2k liquidity band was also expected to play a role.
A move above $72,000 is cause for celebration for Bitcoin bulls, but we expect it to take multiple tries before the price breaks through the $75,000 area.
Ethereum Rise to LTF Resistance — Will it Break Soon?
Source: ETH/USDT on TradingView
Ethereum has also lost momentum over the past two weeks. The 12-hour RSI stood at 54, indicating a bullish stance.
Its market structure was also bullish, with the 78.6% retracement level showing good response from buyers.
However, despite the buying volume over the past 10 days, OBV failed to capitalize on the uptrend. Despite being nearly 40% higher, ETH has fallen to roughly the same level as its January high.
This lack of demand meant that Ethereum bulls may need some time to catch their breath before attempting another rally. At the time of writing, it was facing short-term resistance at $3,680.
Source: CoinAnalyze
Coinalyze indicators pointed to sharp selling pressure in the spot market in March. Spot CVD has been trending downward this month and has only recently flattened out of its southward spiral.
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Open interest has increased significantly since March 17th. It increased from $9 billion to $10.31 billion, while Ethereum jumped from $3.2 million to $3.6 million.
This indicates widespread bullish belief among futures market speculators.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.
