Cryptocurrencies are growing amid activity of miners: market overview

Article reading time:
6 min.

Opinion

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

Bitcoin

The price of bitcoin 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 high-profile news fromthere was little outside world during the week. Michael Novogratz declared cryptocurrencies generally safe. Morgan Creek Capital CEO Mark Yusko believes that the world will come to implement bitcoin everywhere. And economist Steve Hanke is a crypto skeptic. 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 is the increase in the complexity of BTC mining. At the moment it is 46.8 T (trillion). For the first time, the figure exceeded 45 tons.

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

In terms of technical analysis, bitcoinapproached $29,000, rose above this mark twice and fell back. This indicates the presence of a strong resistance level in the $29,000-$29,500 area. The support level is this week's low of March 27, $26,541.

Source: tradingview.com

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

Ethereum

The week from 24 to 31 March was marked by growthether by 3%. At the same time, 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 Ethereum fell 3.34% and the price dropped below $1,700.

Source: tradingview.com

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

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

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 hasn't been without negativity.NYU 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 weekthere have been few changes. 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 Avalanche increased in price by 2.47%. In general, the week did not show any pronounced trend: four sessions of growth were supplemented by three sessions of decline.

Source: tradingview.com

By and large, March passed for the Avalanche inlateral movement. The coin added about 2% in price, 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 LunarCrush, interest in Avalanche on social media 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 decrease in the indicator by more than 60%.

Source: lunarcrush.com

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

At the moment, the price of AVAX is in a sideways movement. The support level is $16.2, the resistance level is the March 2023 high of $19.18.

Source: tradingview.com

So, over the week, cryptocurrencies mostly grew in price. But the growth was extremely small. The main news was the increase in the complexity of BTC mining 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.