Bitcoin and Ethereum Price Analysis – March 7th

Bitcoin is currently attempting to establish a higher low at $85,000, but the recovery effort is encountering significant resistance at the $90,000 mark. This situation indicates a fierce struggle between bullish and bearish market forces. On March 7, Bitcoin rebounded from an intraday low, striving to surpass the $90,000 resistance level, which reflects buying interest at lower price points.

After a notable sell-off triggered by US President Donald Trump’s strategic moves, some analysts remain optimistic. They anticipate that other nations may follow the US in creating their own strategic Bitcoin reserves. This development could alleviate concerns among institutional investors regarding Bitcoin purchases. Cory Klippsten, CEO of Swan Bitcoin, shared insights with Cointelegraph, stating that while Bitcoin is in a consolidation phase, it is unlikely to end the ongoing bull run. He predicts a significant price movement before the end of June this year.

Market Sentiment and Predictions

Despite the optimism, not all analysts share a positive outlook for the near term. Bitfinex analysts expressed to Cointelegraph that Bitcoin may remain range-bound, particularly as the US is not expected to make any new purchases. However, they view the recent moves as a step in the right direction, suggesting that Bitcoin could become a viable reserve asset.

A crucial indicator for the bulls will be a break and close above the 20-day exponential moving average (EMA) at $90,977. If this occurs, the BTC/USDT pair could potentially rise to the 50-day simple moving average (SMA) at $96,861. However, sellers are anticipated to defend the zone between the 50-day SMA and $100,000 fiercely. Should the bulls manage to gain the upper hand, the pair could surge towards $109,588.

Conversely, if the bears succeed in pushing the price below $85,000 and maintaining it there, the pair could plummet to $78,258, with a further decline to $73,777 being a possibility.

Ethereum’s Struggles and Support Levels

Turning to Ethereum, the cryptocurrency fell to the $2,111 support level on March 7, indicating that bearish pressure remains strong. A minor positive note is that bulls are defending this support level, as evidenced by the long tail on the candlestick. The bulls will aim to push the price towards the 20-day EMA at $2,423, which is a critical short-term level to monitor.

If buyers can drive the price above the 20-day EMA, it will signal a potential loss of grip by the bears. A break and close above the downtrend line would further confirm bullish momentum. However, if the price declines from the current level or the overhead resistance and breaks below $2,111, it could indicate the beginning of a new downtrend, with the ETH/USDT pair potentially collapsing to $1,750.

The flat 20-day EMA and the RSI hovering near the midpoint suggest a range-bound action in the short term. If the price slips and remains below the 20-day EMA, the XRP/USDT pair could drop to $2.20. Buyers are expected to defend the $2.20 to $2 zone vigorously. A solid bounce off this support zone would indicate a range formation between $2.20 and $3. If buyers manage to push the price above $3, the pair could see further gains.

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