Cryptocurrencies are growing amid activity of miners: market overview

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Opinion

After a turbulent start to the month, accompanied by bank collapses, the market has calmed down. The growth in the value of cryptocurrencies continued, but at a slower pace than at the beginning of March 2023.

Bitcoin

Bitcoin price has changed over the past weekless than 1%. Over the past seven days, the world's first cryptocurrency has made a new attempt to gain a foothold above the $29,000 level, but is trading around $28,000 on the evening of Friday, March 31.

Source: tradingview.com

By and large, some big newsthere was little from the outside world this week. Michael Novogratz declared cryptocurrencies generally safe. Morgan Creek Capital CEO Mark Yusko believes that the world will come to the point of introducing Bitcoin everywhere. And economist Steve Hanke is a cryptoskeptic. In his opinion, Bitcoin is nothing more than an extremely speculative asset, the value of which from a fundamental point of view is zero.

The most important fundamental news remains the increase in the difficulty of BTC mining. At the moment it is 46.8 T (trillion). For the first time the figure exceeded 45 T.

Due to the fact that some banks have collapsed, there are liquidity problems in the cryptocurrency markets. The indicator turned out to be
the lowest in the last ten months. This has already raised waves about the future prospects of BTC, and its growth is associated with an insufficient influx of capital to crypto exchanges.

From the point of view of technical analysis of Bitcoinapproached $29 000, rose above this mark twice and fell back. This indicates the presence of a strong resistance level in the area of ​​$29 000 – $29 500. The support level is this week's low of March 27, $26 541.

Source: tradingview.com

The fear and greed index has risen by two points compared to last week and is 63 on the evening of March 31. This indicates an increasingly
the prevalence of greed over fear. 

Ethereum

The week from March 24 to 31 was marked by an increaseether by 3%. Moreover, for the last four sessions, starting from Tuesday, March 28, the coin was in the green zone. The worst day of the week was Monday, March 27, when Ether fell by 3.34% and the price dropped below $1,700.

Source: tradingview.com

The main news for the second largest cryptocurrency in the world by capitalization was the announcement of the payment of a double reward for finding vulnerabilities in the network. Initiative
called Ethereum Bug Bounty. Valid from March 28 - the moment of announcement - until April 5, when it will be held
Shapella update. You can earn up to $250 000. By the way, it was on Tuesday, March 28, that ETH showed the biggest increase of the week – 3.32%.

It should also be noted that the supply of ether continues to decline, by 0.34% over the last month.

Source: ultrasound.money

In total, since the transition to Proof-of-Stake (PoS), the number of coins in circulation has been reduced by more than 73,000. At current prices, this is equivalent to $132.7 million.

Source: ultrasound.money

The week wasn't without some negativity.New York University professor Nouriel Roubini expressed the view that Ethereum is a security and the Ethereum ICO was a scam.

In terms of technical analysis for the weeklittle change occurred. The support and resistance levels remained approximately the same as they were a week ago – around $1 680 and $1 860, respectively.

Source: tradingview.com

Avalanche

From March 24 to March 31, the price of the AVAX token from Avalancheincreased in price by 2.47%. In general, the week was not distinguished by any pronounced trend: four sessions of growth were complemented by three sessions of decline.

Source: tradingview.com

By and large, March went well for the Avalanche.lateral movement. The coin increased in price by about 2%, which is not enough for such a volatile asset. In the near future, you should be careful with investments in the AVAX token. According to the portal LunarCrush, interest in Avalanche on social networks has dropped by almost 80% over the past week. In addition, the platform shows what percentage of investors are bullish. Unfortunately, over the past seven days there has been a reduction of more than 60%.

Source: lunarcrush.com

The positive for Avalanche iscontinued development in several directions. This week, the developers announced the launch of Avaissance, a program to support digital artists and grow the NFT platform ecosystem. Until April 28, anyone can apply to participate. 50 participants will be selected in May. Afterwards, enthusiasts will receive support and training from Avalanche for six months. The program provides for cooperation of the platform with various DAOs. 

At the moment, the price of AVAX is moving sideways. The support level is $16.2, the resistance level is the March 2023 maximum of $19.18.

Source: tradingview.com

So, over the week, cryptocurrencies mostly grew in price. But the growth was extremely insignificant. The main news was the increase in the difficulty of mining BTC and preparations for the Shapella update from Ethereum.

This material and the information in it does not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.

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