Cryptocurrency markets traded marginally lower on Monday, dragged by Bitcoin, Ethereum, Cardano, and Avalanche. However, over the weekend, Bitcoin surged over $42,000 level, and other altcoins also saw gains.

At 11.39 a.m., Bitcoin was trading 0.84% lower at $42,164, while Ethereum was down 1.05% at $2,266.

“Over the weekend, Bitcoin climbed back above $42,000, aligning with the performance of equities. A breach of the $42,800 resistance might set the stage for a move to the $43,500 level. The market could see renewed buyer interest if Bitcoin surpasses $44,700. Conversely, a failure to overcome resistance places support at $41,750,” said Edul Patel, CEO of Mudrex.

CoinDCX Research Team said, ” Ethereum (ETH) closed on a bearish note and is still positioned below the 20EMA Daily. Currently, ETH is in the middle of its range, slightly above $2,275. Key support and resistance levels for ETH are at $2,175 and $2,388, respectively.”

Other popular altcoins, such as Avalanche, Cardano, Internet Computer, Shiba Inu, Polygon, and Dogecoin fell 1-3%.The global cryptocurrency market cap fell 0.92% to around $1.62 trillion in the last 24 hours. However, the total trading volume increased more than 13% to $40.16 billion.
In the last 24 hours, the market cap of Bitcoin, the world’s largest cryptocurrency, fell to $828 billion. Bitcoin’s dominance is currently 50.89%, according to CoinMarketCap. BTC volume in the last 24 hours surged 14% to $15.4 billion.

Tech View by ZebPay Trade Desk

BTC has seen a gradual upward movement over the weekend, signalling sustained interest from bullish investors. Robust buying at lower price levels has halted the descent in Bitcoin’s value, but the initiation of a new bullish trend appears unlikely in the immediate future.

Bitcoin might undergo a phase of consolidation, with market participants closely monitoring the capital inflows into recently introduced Bitcoin ETFs and anticipating the forthcoming Bitcoin halving in April. If Bitcoin establishes a trading range, it would be interpreted positively, suggesting that traders are not rushing to secure profits, indicating an expectation of a sustained uptrend. This development could also bode well for specific altcoins, attracting investor attention and resuming their upward trajectory.

Agencies

Bitcoin after giving a breakout above the key resistance of $28,500 witnessed a sharp rally and the prices surged almost by 71.8% and made the high of $48,969. Post this move, the asset made a ‘Shooting Star’ candle at the high and failed to give a daily closing above the key resistance of $48,000. The prices corrected almost by 21% and dropped to $38,555.

The asset did not give a weekly closing below the key support level of $40,000 and the lower longer shadow around $40k indicates buying around these levels. BTC has a strong support at $40,000 and to further rally it needs to close and sustain above $48,000.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)