Bitcoin continues to hold its ground, with values nearing the $70,000 mark, reflecting investors’ reluctance to cash out and a potential for further growth. The cryptocurrency‘s strength is evidenced by the increasing number of Bitcoin whales, with unique addresses containing over 1,000 bitcoins climbing to 2,104 by March 7, suggesting expectations of sustained upward momentum.
Market Sentiment Lifted by Bitcoin’s Performance
The positive trend in Bitcoin has reverberated throughout the crypto market, uplifting overall sentiment. DefiLlama’s blockchain analysis highlights that the collective value in DeFi platforms has exceeded $100 billion, marking a significant milestone in nearly two years, though still below the November 2021 peak of $189 billion. This surge presents a mixed outlook as investors, emboldened during bull markets, may overlook the risks, as cautioned by Bitwise’s Chief Investment Officer Matt Hougan who advises vigilance against overvalued poor-quality projects.
Technical Indicators Suggest a Bullish Continuation
Even as Bitcoin approaches the substantial $70,000 resistance, the bull market’s determination appears unwavering with consistent purchasing on price dips. A successful breach of this threshold could propel the BTC/USDT pair towards $76,000, and potentially even $80,000, barring minor resistance. However, should bears forcefully sell, the price may retreat below the 20-day EMA of $61,422, triggering a possible correction towards the 50-day SMA of $51,197.
The market’s technicals, inclusive of upward trends in both moving averages and a favorable RSI, demonstrate the bulls’ current market dominance. Their strategy involves acquiring assets on any price retracements, maintaining levels above the 20-day EMA. A close above $70,000 would signify readiness for the next phase of the uptrend, while a drop below the EMA may signal a bearish turn with potential declines to the 50-day SMA and possibly down to $59,000 if that support fails.