Bitcoin consolidates above $68,000, ETH eyes $4,000 level before Dencun upgrade

Crypto market overview: Bitcoin, the leading cryptocurrency by market capitalisation has lost close to 0.8 per cent of its market value between Sunday and Monday on the sentiments of strong profit booking in the market above $69,000 level. Bitcoin is currently consolidating above $68,000 while Ethereum is eyeing to break the next resistance of $4,000 ahead of its Dencun upgrade. 

On Monday, the Crypto Fear and Greed Index also regained its value above 80 points reflecting strong bullish sentiment in the market. 

Image credit: Alternative.me

Over the last weekend, crypto market stayed relatively steady, with BTC hovering near its all-time high and ETH showing a slight bearish trend, CoinDCX research team said. CoinDCX continued "From a technical standpoint, BTC is consolidating around the crucial level of $69,000, finding support from the 20EMA on the 4-hour chart. Breaking above this resistance level and holding it strongly is essential for BTC to establish new highs,” 

“ETH, meanwhile, is currently lagging behind BTC in performance. However, the ETH/BTC pair appears stable, indicating a potential rebound, which could lead to ETH outperforming BTC in the coming days or weeks. To achieve new highs, ETH needs to surpass the $3,970 level. It is worth noting that the upcoming US CPI announcement may introduce additional volatility into the market,” added CoinDCX. 

Parth Chaturvedi, Investments Lead, CoinSwitch Ventures believes that with just 40 days left to the halving event, the crypto market can witness a period of heightened volatility in the market. Chaturvedi said, “The wider investment landscape continues to actively move towards digital assets. Blackrock’s Bitcoin ETF—IBIT—has set a new US record by reaching $10 billion in AUM faster than any other ETF in the US ETF history.” 

Sudeep Saxena, Co-founder, CoinGabbar said, “Bitcoin experienced a notable surge in volatility, encountering supply pressure around the $69,000-$70,000 resistance zone. On the daily chart, two reversals from this barrier suggest that sellers are actively resisting the psychological $70,000 level. The question now emerges: Will the short-term momentum of the Bitcoin rally ease, or will bulls manage to surpass the $70,000 mark?” 

Citing the next Bitcoin resistance much higher in the charts, Edul Patel, CEO of Mudrex believes that the next crucial resistance for Bitcoin will be $76,000. Patel said, “The count of Bitcoin whales, representing unique addresses holding over 1,000 Bitcoin, has surged to 2,104 as of 7th March, indicating a strengthening uptrend in the market. BlackRock's Bitcoin ETF has amassed more Bitcoins than MicroStrategy in just under two months since its inception.” 

Sharing the outlook for the altcoins movement in the market, Vikram Subburaj, CEO, Giottus said, “We expect Bitcoin to consolidate and make another push at $70,000 this week. Key altcoins have shed post BTC’s rejection with Ethereum falling short of $4,000. BNB, however, was a clear winner with a daily gain of 6 per cent. As long as Bitcoin stays above $65,000, altcoins should rally well. We advise against using leverage trades till a decisive market action ensues. Key support targets for altcoins: Ethereum ($3,800), BNB ($500), Solana ($132), Cardano ($0.65), and Avalanche ($38).” 

Underlining the consolidation phase of Bitcoin above $68,000, Shivam Thakral, CEO of BuyUcoin said, “The biggest Spot ETF which fueled this recent rally, BlackRock’s Bitcoin ETF, has reached $10 billion faster than any US ETF in history. We could see Ethereum break the $4000 resistance level as the Dencun upgrade, which is expected to decrease fees on the Layer-2 blockchains, is less than 2 days away.”