Greg Waisman, the co-founder and COO of the fintech company Mercuryo, shares his insights about the Bitcoin (BTC) and Ethereum (ETH) weekly price movements.
Both Bitcoin and Ethereum have had a very volatile week, with their charts being nearly identical. Both coins have seen considerable growth early on in the week, although they then encountered strong resistances that have kept them down ever since, stuck in an endless loop of corrections and recoveries.
Fundamental Analysis: Is the Biden Administration Warming Up to Crypto?
The first week of March has started rather well for the two largest coins. It may be the beginning of a new month, or simply demand, but both coins have seen strong trading volume on the first day of the month, followed by price increases.
There were also some positive events for the crypto industry, such as President Biden’s SEC chair pick, Gary Gensler, revealing new policies on crypto regulation. Gensler, who also works as an MIT professor who teaches cryptocurrencies, previously served as the CFTC chairman.
In other words, not only is he well-acquainted with the crypto industry, but also with the regulatory situation in the States.
With the lack of regulations being one of the biggest issues of the modern-day crypto sector, any rules and guidelines that would help stabilize the industry are an extremely positive development. With one of the leaders in bringing these regulations being someone with a positive outlook on the crypto industry, it is hardly surprising that the prices have started moving up.
Of course, no regulations have been brought as of yet, and the talks are only about to begin. But even so, the future of crypto in the US looks rather positive with this new development.
On top of that, there were also new price forecasts that predicted that Bitcoin price could go anywhere from $100,000 to $288,000 before 2021 ends, as suggested by the coin’s stock-to-flow model. With the stock-to-flow model usually being one of the more reliable ways of predicting the coin’s price, this forecast has undoubtedly given investors and traders a lot to hope for.
One major news for Ethereum emerged when Amazon-managed blockchain added support for the coin, which is something that was expected for over two years now. So, while the Ethereum movement does appear to be following Bitcoin’s lead – the coin certainly did receive a major new use case that would, in other times, be more than enough to push its price up on its own.
Technical Analysis: What Do the Charts Say?
As mentioned, Bitcoin saw strong growth on February 28th and March 1st, going up by 12%, from $43,638 to $48,988. After a small correction on March 2nd, it went up by around 8% by March 3rd, heading from $47,442 to $51,670. The coin has seen one price rejection before reaching this weekly high, as well as another one after hitting this level.
At the time of writing, BTC price sits at $55,063 again, after the correction originally took it to its bottom at $46.9k. In other words, the coin is once again recovering, albeit slowly.
Ethereum price, on the other hand, saw much more sudden surges and corrections. On February 28th, it was at the 7-day low at $1,335, only to climb up by 19% to $1,592 by early March 2nd. Later that same day, the price dropped back down 8% to $1,462, followed by another rapid 12.3% surge to $1,642 by March 3rd. The following day and a half brought a series of drops, which took ETH to $,1460. At the time of writing, ETH price sits at $1,828, after it just stopped trading in the red.
What Is Next for Bitcoin and Ethereum?
Judging by the recent price forecast based on Bitcoin’s stock-to-flow model, it is very likely that the coin will return to its rally at some point in 2021. When this might happen, however, remains unknown. Bitcoin’s YTD chart shows that the current correction is a minor one, compared to the growth that BTC has seen in 2021, although it should still be taken seriously.
As for Ethereum, the coin is clearly mirroring Bitcoin’s performance, indicating a strong correlation, with the only difference being that it is seeing a lot of smaller fluctuations while following the same big path that BTC is taking. If BTC’s dominance remains as strong, then Ethereum is not likely to start acting on its own in the near future.
Co-founder and COO of the fintech company Mercuryo. His responsibilities involve overseeing the internal work of different departments in the company and managing communication between them. He has deep expertise in the field of finances and technology. Possesses knowledge and practical expertise in the field of fintech and blockchain.