Bitcoin breached above the Fibonacci 23.6 resistance level last week as we expected and has breached above Fibonacci 38.2 resistance today! Bulls were firmly in control of crypto markets last week. A glance at the Bitcoin daily chart however reveals the RSI indicator is approaching the overbought zone. The continued rising of RSI signals a Bitcoin retracement down is to be expected this week as traders take profits after RSI signals market is overbought. Afterward though I expect bulls will once again regain the control and Bitcoin will advance to test the next resistance at Fibonacci 61.8 level!
The rebounding of global stock market following Fed’s rate hike at mid-March meeting continued last week. The bullish momentum lifted the overall crypto market capitalization back above the $2 trillion mark last week, the FTX crypto exchange created a unit in Australia, while Thailand’s ban of crypto as means of payment was a sole significant bearish news of the week.
Bitcoin overcame a major resistance at about the $44,500 level, having fallen back from there four times this year. Speculation that Singapore-based nonprofit Luna Foundation Guard (LFG) purchased Bitcoin worth $125 million early last week was cited as a major driver for Bitcoin rally. Rumors said LFG, which is focused on UST - Terra's decentralized and world's fourth-largest dollar-pegged stablecoin, is accumulating Bitcoin as a reserve asset.
The FTX crypto exchange established a new division in Australia that will offer exchange and over-the-counter (OTC) products and services, including derivatives. FTX reached $32 billion valuation, which is about the same as the market capitalization of Germany's Deutsche Boerse and more than the Nasdaq exchange.
Thailand banned crypto as means of payment las week. Thailand’s Security and Exchange Commission said on Wednesday that it will ban the use of crypto as a means of payment from April 1. The SEC stressed however that it was not a ban on crypto trading and digital assets, just a ban on the use of crypto for payments.
