Bitcoin recently experienced a significant price movement, dropping to around $78,000 on February 28th before rebounding over the weekend. A key catalyst for this upward shift was a social media post by former U.S. President Donald Trump on March 2nd, where he advocated for a "strategic reserve of cryptocurrencies." This comment, which specifically mentioned BTC, ETH, SOL, ADA, and XRP, triggered a broad market rally.
While this news provided a temporary boost, it's important to remember that much of this sentiment was already anticipated by the market. Therefore, a sustained upward trend is not guaranteed. All eyes are now on the upcoming crypto summit scheduled at the White House on Friday, March 7th. The absence of a positive surprise at this event could easily lead to another wave of disappointment selling. However, for this week, the overall mood is cautiously optimistic, driven by the hope for favorable developments.
Key Technical Levels for Bitcoin (BTC)
From a technical analysis perspective, Bitcoin's price action against the JPY is at a critical juncture. The daily chart shows that BTC/JPY has approached a significant descending trendline. This level often acts as a strong resistance zone, where selling pressure tends to increase.
Many traders are watching to see if the price can break through this barrier. A successful breakout could signal a shift in momentum. The immediate target upon breaking this resistance is set around 15 million JPY, a level that coincides with the 90-day Simple Moving Average (SMA). However, even if this target is reached, it might present a new opportunity for sellers to re-enter the market.
For those considering entry points, the 4-hour chart offers more granular insights. Given the recent sharp rise, a deep pullback is considered less likely. Instead, shallower dips are expected. The primary zone for potential "buy the dip" opportunities is identified between 13.8 and 13.85 million JPY, near the support provided by the 90-period SMA on the 4-hour chart. A deeper fallback, though less probable, could find support around 13.35 million JPY, which is another key level to watch for those looking to enter on a more significant retracement.
Ethereum (ETH) Follows Suit with Reversal Signs
Ethereum mirrored Bitcoin's positive movement, also surging following the market-wide catalyst. Analyzing the ETH/JPY 4-hour chart reveals that the price is currently testing the 90-period SMA. This moving average is now acting as a immediate resistance level that needs to be conquered for further upward movement.
The nearest significant support level for Ethereum is situated around 355,000 JPY. A pullback to this level could be seen as a technically sound buying opportunity from a chart perspective. For those seeking an even better entry, watching for a dip toward the rising 30-period SMA (currently in the high 340,000s JPY) might be prudent. It's crucial to monitor the chart in real-time, as the value of these moving averages changes with each new period.
The Moving Average Convergence Divergence (MACD) indicator for ETH is also showing promising signs, hinting at a potential move into positive territory. Technically, these factors suggest that Ethereum may have also found a short-term bottom, setting the stage for a potential return to an upward trend in the near term.
A significant factor to watch is the activity surrounding Bitcoin and Ethereum ETFs. There is a strong possibility of substantial buybacks occurring during the New York trading session. For active traders, positioning before the NY open might present a favorable short-term opportunity, particularly for March 3rd.
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Frequently Asked Questions
What caused Bitcoin's recent price rebound?
The rebound was primarily triggered by a social media post from former President Donald Trump, which expressed support for cryptocurrencies and mentioned specific assets like BTC and ETH. This created a wave of positive sentiment and buying activity in the market.
What is the main resistance level for Bitcoin currently?
On the daily chart against the JPY, the key resistance is a descending trendline. A break above this level could open the path toward a target near 15 million JPY.
Where are good entry points for buying Bitcoin?
Based on technical analysis, shallower pullbacks to the 13.8-13.85 million JPY zone (near the 90-period SMA on the 4-hour chart) are potential entry points. A deeper pullback to the 13.35 million JPY support level could offer another opportunity.
Is Ethereum showing similar bullish signs?
Yes, Ethereum's chart also suggests a potential reversal. It is testing key resistance, and its MACD indicator is nearing a positive crossover, indicating strengthening momentum. Key support lies around 355,000 JPY.
What event could impact the market this week?
The crypto summit scheduled at the White House on March 7th is a major event. The market's reaction will heavily depend on the announcements and tone set during this meeting. A lack of positive news could lead to selling pressure.
Should I expect continued upward movement?
While short-term technicals are improving, the market remains sensitive to news. The upward move is not guaranteed to be sustained, especially if the upcoming summit fails to deliver positive surprises that meet market expectations. Always manage your risk accordingly.