Bitcoin analysis for March 31, 2021
Following the movement of Bitcoin on the four-hour time frame, we see that the resistance is again at the psychological level at $ 60,000 for Bitcoin. The break was made above the upper resistance line, but BTC gave up again and made a smaller pullback. Here we can expect potential support as we are also testing moving averages of MA20 and EMA20.
The break below them takes us into a zone between $ 54,000 and $ 56,000 because that’s where we encounter moving averages of the MA200 and EMA200. Conversely, if we find support in Bitcoin doing a retest on the trend line, then we can expect the bullish trend to continue above $ 60,000.
On the daily time frame day, Bitcoin started bearishly but still with the support of moving averages. For now, we can see this as part of a smaller pullback within the big bullish trend. If we see a further continuation of this pullback, we are looking for better support at the price of $ 50,000 for Bitcoin.
The Chicago Mercantile Exchange (CME) officially announced today that it would expand its crypto derivatives package by introducing a new Micro Bitcoin futures contract, starting on May 3, if approved by the regulator.
The contracts will be the size of one-tenth of one bitcoin, settle in cash based on the CME CF bitcoin reference rate, and offer the same attributes and characteristics of standard bitcoin futures.
The smaller contract will allow a number of speculators to introduce more cost-effective strategies and flexibility to protect against the risk of spot bitcoin prices, CME said on Tuesday.
BTC closed last week by 2.76%, identical to the loss of 2.77% from the previous week. It was a week of media fuss, and many experts considered it the end of the bull market. Still, the leading cryptocurrency sank negative headlines, easily reaching above the 10-week simple moving average and continuing to jump with a 5.34% gain this week.
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