Max E.Mon, Mar 21, 2022 7:00 PM
BTC, ETH & ETC: 21 March Price Digest
A rather positive last week ended with a slight drop. During the market-wide decline, BTC attempted to gain a foothold above the $41k support level but was unsuccessful, however it managed to do so early Monday morning. At the time of writing, the largest cryptocurrency has lost 0.4% of its value and is gathering strength over the psychological barrier of $41K. Most likely, these sudden drops were nothing more than negative corrections following BTC’s unsuccessful attempts to overcome the $42.5k resistance level.
The spot market has been fairly quiet lately, with BTC rising and falling over the weekend”. BTC's negative correction soon after hitting $42.2k could have been caused by leveraged traders getting caught up in the positive sentiment. The implied volatility of BTC(IV) in the options market moved from backwardation to contango after the FOMC meeting. With the winds of change in the air driven by the Fed and their rate hike program, the implied volatility of short-term options is likely to drop even lower.
Over the last 24 hours, ETH rose by 2.9% and is now strengthening above the $2,900 mark. Major altcoins also declined, with the exception of LUNA, which was able to record a 3.8% increase even in such conditions. However, despite the gloomy state of the market, there is encouraging news. Some data hints that once the short-term BTC trend settles down, market participants are more likely to start looking for alternative assets with higher returns.
As you can see from Swissblock’s Altcoin Cycle Signals chart, major asset movements usually mark the beginning of capital rotation into ETH and major altcoins.
Ethereum Classic (ETC)
This week we are seeing price increases for the most unexpected cryptocurrencies, including Ethereum Classic. The price of this altcoin increased by 7.05% in 24 hours. At the time of writing ETC is trading at $38.44.
Over the past week, the price of the asset has increased by approximately 50%. This is the biggest increase since June 2021. The ETC price dropped back in May, however, the coin was able to recover its losses and reached a new yearly high. While most cryptocurrencies gained more momentum in November 2021, ETC failed to do so. The price has been consolidating as of recently and is still far from the May high of $133.