The crypto market failed to break out of its range

The crypto market failed to break out of its range

Market Overview

The crypto market cap grew by 2.6% to $2.33 trillion. The market remains stuck in a narrow range, moving from the lower boundary on Saturday to the upper boundary at the start of the day on Tuesday. At times like this, attention turns to whether there will be an upward breakout and a reversal of the February pattern. On the sellers' side, the pull towards the dollar is a strong headwind for USD-denominated quotes. On the other hand, this is a chance for Bitcoin and major cryptocurrencies to play their role as a safe haven, providing shelter from the storm.

Bitcoin rose to $70K, but Tuesday morning's decline brought its price back to $67K, indicating significant resistance from sellers on the upside. The first cryptocurrency failed to break out of horizontal consolidation, which again forces us to consider a decline to $63K as a working scenario. 

News Background

The positive market sentiment on Monday was a combination of a low base after the previous price decline, a breakout of key technical levels and a resumption of accumulation by large investors, CoinShares notes. At the same time, both Ethereum and Bitcoin have seen net outflows since the beginning of the year.

Bitcoin is undervalued compared to ‘overheated’ gold and global money supply, which could contribute to a possible upward reversal for BTC, according to JAN3 CEO Samson Mow.

Ethereum co-founder Vitalik Buterin presented a plan for two key changes to the network's execution level: the transition to a binary state tree and the long-term replacement of EVM.

Strategy bought 3,015 BTC ($204.1 million) last week at an average price of $67,700 per coin. Strategy now owns 720,737 BTC, purchased for $54.8 billion at an average price of $75,985 per bitcoin.

BitMine acquired 50,928 ETH over the past week. The company's reserves have reached 4.47 million ETH, which is 3.71% of Ethereum's market supply. BitMine plans to accumulate 5% of all ether.

By the FxPro Analyst Team