Cryptos weekly market analysis

We report the traditional weekly crypto market analysis based on the contribution by Aayush Jindal ( The analysis was made on Friday, March 20.

After a successful close above $5,550, bitcoin gained bullish momentum above $5,850. BTCUSD is up more than +15.0% and it tested the 6,400 resistance area.
On the downside: if there is a downside correction, the 6,200 level might act as a support.
On the upside: the first major resistance is near the 6,550 and 6,600 levels. A successful break above 6,600 might push the price towards 6,800.

Ethereum rallied sharply above the $125 and $130 resistance levels. ETHUSD even broke the 135 resistance level and tested the 140 area.
On the upside: the next major resistance for the bulls is now near 150.
On the downside: an initial support is near 132, below which the price could correct lower towards the 125 support area.

Bitcoin cash is up more than +30.0% and it broke the 190 and 200 resistance levels. BCHUSD even climbed above the 220 and it is now approaching the 240 resistance level. A clear break above the 240 and 250 resistance levels won’t be easy in the near term. The previous resistance near 205 and 200 may now act as supports.
Litecoin managed to gain pace above the $35.0 and $36.5 resistance levels. As a result, LTCUSD spiked above the 40.0 barrier and it is now showing a lot of positive signs. Having said that, there are now chances of a downside correction below 38.5.
XRP broke the $0.155 resistance level to start the current rally. The price is up close to 15% and it broke the 0.165 resistance. Any further gains could lead the price towards the 0.172 and 0.175 resistance levels. The next key resistance is near 0.180.

In the last three trading sessions, many small-capitalization altcoins rose more than +20.0%, including TT, MIOTA, VSYS, ENJ, NMR, ATOM, MCO, MATIC, MKR, NEXO, BCH, DGB, HEDG, BCD, and BTG.

Some bitcoin investors started going long last week

Fredrik Vold ( wrote that “despite a brutal price crash last week, long-term bitcoin “hodlers” are still not scared away, and instead appear to be using the lower prices as a buying opportunity, a new analysis showed.

According to the report, prepared by blockchain analysis firm Glassnode, a metric known as the “Hodler net position change” is currently showing a reading above zero, indicating that hodlers on average are accumulating bitcoin again.

Similarly, a reading below zero means that long-term hodlers have become net sellers, which was seen for a brief period around last week’s major sell-off.

“We can see that this February, when prices approached $10,000, hodlers stopped accumulating more BTC, potentially having identified it as a market top,” Glassnode noted, adding that “during the crash last week, hodlers began accumulating, signaling confidence in BTC at this price point.”

“Long-term investors appear to have identified this as the bottom, which today’s price increase supports,” the report further noted. Glassnode’s report thus appears to support to generally positive sentiment surrounding bitcoin lately.

According to a technical strategist at Fundstrat Global Advisors, Rob Sluymer, BTC has held above its 200-week average, which he sees as an important long-term structural support level for most asset classes, and one that worked for the cryptocurrency in both 2015 and 2018.

“For now, technically we will again give bitcoin the benefit of the doubt that it is attempting to bottom but recognize bitcoin will likely need months of consolidation to repair the technical damage now in place,” he told Bloomberg.

Vijay Ayyar, Singapore-based head of business development at crypto exchange Luno, added that recent prices were potentially below running cost for many miners. “Miners are also better off just buying Bitcoin at such prices so there could be that aspect as well,” he told Bloomberg.

Last Friday, bitcoin has already seen a strong recovery from the previous week’s crash, regaining more than +70.0% from its low of $3,858 on March 13. Last Friday, the 24- hour gain was nearly +24.0%.

Demand for customized crypto options hits Record, says GSR

Paddy Baker ( reports that “digital assets firm GSR says it’s seen record interest in its customizable options contracts as funds, exchanges and miners try to hedge against price volatility.

The Hong Kong-based firm, which offers a host of services including market making, over-the-counter trading and product development for digital assets, told CoinDesk that 2020 was already shaping up to be a good year for the company, with structured products becoming a fast-growing part of their business.

“The pandemic has predictably sparked a rise in trading activity, but it’s only adding to what has been a substantial shift towards risk management in 2020,” said GSR co-founder Rich Rosenblum. “Volumes for the custom swaps and options contracts we provide have already surpassed the total volumes for 2019 and we’re on pace for a 400 percent year-on-year increase.”

Market conditions have become increasingly unpredictable as the COVID-19 coronavirus spreads across Europe and North America. When bitcoin’s price plunged from $7,800 to $4,100 last week, volatility shot up from 60 percent to well over 160 percent.

GSR’s clients are mostly funds and exchanges. Many are established companies, with payrolls and overheads, who turn to GSR for products that allow them to hedge against volatile market conditions.

The company also works on risk management solutions specific for miners, who as well as dealing with price volatility, also have to prepare for the upcoming bitcoin halving – where the block reward is set to fall from 12.5 to 6.25 BTC. “Many miners have approached us proactively since last Friday, inquiring about protective puts,” said Xin Song, GSR’s Asia business development director.

As recent volatility has put many options up at a premium, GSR has actually suggested miners begin selling their existing call options, according to Song.

“Selling a call is effectively giving up upside gains in return for earning the option premium, so if the miner either doesn’t believe that [bitcoin] will rally hard before the expiry, or if they are happy to sell their bitcoin at a higher price in the event that we do, then selling calls makes sense,” he said.

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