Well, the cryptocurrency markets took a huge hit during March 2020 as the entire market cap for the industry dropped from a high above $260 billion to drop as low as $126 billion during the market collapse. It has since managed to recover as it trades at $187 billion during the opening days of April 2020 as many analysts start to feel the worst of the storm has passed;

I am sure many of you already know what is going on but if you have been hiding under a rock (you should actually be at home!) these past few weeks here is a very quick re-cap.

Bitcoin was trading at a high of around $9,200 at the start of March 2020 after dropping from the February highs of around $10,400. It went on to drop into the $8,000 region during the first week of March 2020 as the first sign of the panic started to show.

Then on March 12th, the collapse happened.

Bitcoin dropped by a total of 41% as it fell from $8,000 and plummetted as low as $4,600, creating one of the worst trading days in Bitcoin’s history. The panic was created by the uncertainty regarding the spread of the Coronavirus to the Western world. On the same day, the S&P 500, an index that tracks the top 500 US corporations, dropped by a total of 12% as the market panic was not limited to just cryptocurrencies.

The market crash brought Ethereum back to the $100 level and caused Ripple to close at a price of around $0.135.

Then something strange happened.

Whilst the S&P 500 and stock markets around the world continued to crash, Bitcoin started to show signs of stabilization. This pattern continued throughout the rest of the month as Bitcoin consolidated within a triangle and the rest of the economy continued to tumble.

The chart below shows both the S&P 500 (blue) and Bitcoin (orange) throughout March 2020. Notice how, following the collapse, the SPX continued to fall further lower to reach a total of -44% for March whilst, at the same time, Bitcoin was recovering as it reduced its price fall from -44% to -21%.

As we move into April 2020, we can see that the SPX is still falling as Bitcoin continues to try regain some of its losses incurred during the capitulation.

This consolidation for Bitcoin allowed the rest of the altcoins to also consolidate and start to form their own ascending triangle patterns which I will be covering in the price analysis below.

Bitcoin Price Analysis

BTC/USD - MEDIUM TERM - DAILY CHART

What Has Been Going On?

Taking a look at the daily chart above, we can clearly see the market collapse as it sticks out on the chart. During the collapse, we can see that Bitcoin dropped into the support provided by a 6-month-old falling trend line which was also bolstered by a downside 1.272 Fib Extension level - priced at $4,825.

Thankfully, the market managed to close at this level to prevent further declines. It did indeed, drop even further over the following day to fall into the $3,900 level it quickly rebounded to close back above the aforementioned support.

Bitcoin then went on to rebound as it started to form the makings of the ascending triangle which you can see highlighted on the chart.

It was trapped at the upper boundary at $6,800 and has since been unable to close above this level of resistance as it continues to trade within the consolidation.

This week, we can see Bitcoin rebounded from the lower boundary of the triangle again as it increased to reach the upper boundary, where it currently trades.

The fact that the RSI recently broke above the 50 level shows that the buyers are now trying to regain control of the market momentum.

Are We Bullish Or Bearish?

We are neither. As we are trading within consolidation we can consider the market to be neutral at this moment in time. To turn bullish in the short term, we would need to see Bitcoin breaking above the upper boundary of this triangle and then closing above the $7,000 resistance.

On the other hand, to turn bearish, Bitcoin would need to drop beneath the triangle and close below $6,000.

Where Can We Go From Here?

Well, it all depends on the outcome of this triangle. The RSI recently managed to break above the 50 level to show that the bulls are starting to take control of the market momentum. This is a strong signal to suggest that Bitcoin is about to break above the upper boundary of this triangle to head higher.

If this is the case, the first level of resistance is located at $7,000 (1.272 Fibonacci Extension level). Above this, resistance lies at $7,225 (bearish .5 Fib Retracement), $7,500, $7,700 (1.618 Fib Extension), and $8,000 (bearish .618 Fib Retracement).

This bearish Fib Retracement is measured from the February high to the March low.

If the buyers can continue to drive Bitcoin above $8,000, higher resistance lies at $8,400, $8,613 (1.618 Fib Extension - green), and $9,116 (bearish .786 Fib Retracement).

On the other hand, if the sellers fail to break above the upper boundary and head lower, the first level of support lies at $6,445. Beneath this, support is located at the lower boundary of the triangle and then at $6,000.

Beneath $6,000, support lies at $5,750, $5,545, $5,384, and $5,151.

We are likely to see $8000 BTC in April if we can break above this current triangle and close above the $7,225 resistance.

Ethereum Price Analysis

ETH/USD - MEDIUM TERM - DAILY CHART

What Has Been Going On?

Taking a look at the daily chart above for Ethereum, we can see that the cryptocurrency started the month of March above $240 and went on to collapse to close at the $109 level during the market panic.

ETH did briefly dip lower to break beneath $100 and reach $91 but it quickly rebounded to close above the aforementioned support at $109.

It rebounded from here but has struggled to break above resistance at the $140 level to create the confines of a rather acute ascending triangle pattern.

We can also see that Etheruem recently rebounded from the lower boundary of the pattern this week to reach the upper boundary today at $140.

Are We Bullish Or Bearish?

Similarly, as we are trading within a period of consolidation, we can consider Etheruem as neutral in the short term. A break above $140 would turn Ethereum slightly bullish as it would head back toward the $165 level and regain some of the March losses.

On the other side, if ETH was to drop beneath the triangle and close below $128 the market would then turn bearish.

Where Can We Go From Here?

If the bulls can push Etheruem above $140 and break above the triangle, we can expect the first level of resistance to be at $150. This is then followed with resistance at $165 which is provided by a bearish .382 Fib Retracement level - measured from the February high to the March low.

Beyond $165, resistance is located at $175 (1.414 Fib Extension), $185 (1.618 Fib Extension), and $188 (bearish .5 Fib Retracement).

If the buyers can continue to push ETH above $194 and $200, we can expect additional higher resistance at $211 (bearish .618 Fib Retracement).

On the other side of things, if the sellers push lower, we can expect the first level of support to be located at the lower boundary of the triangle.

Beneath this, support lies at $130, $128, $121, $110, and $103.

We are likely to see $188 ETH in April if we can break above this current triangle and close above the $165 resistance.

Ripple Price Analysis

XRP/USD - MEDIUM TERM - DAILY CHART



What Has Been Going On?

Ripple also suffered a heavy drop in March as it dropped from a high above $0.24 to reach a low-day closing price of $0.136. The cryptocurrency went on to rebound from here but has also formed its own acute symmetrical triangle with the roof being located at $0.18.

Since closing above $0.136, we can see that XRP has managed to remain above this level for the rest of March 2020 which shows that this will be a good solid area for support if XRP does end up breaking beneath the triangle.

We can clearly see XRP has been slowly grinding higher since rebounding as it creates higher lows each day which is a promising sign that there should be a bullish breakout on the way.

The RSI has also penetrated above the 50 level to show that the bulls are attempting to gain complete control of the market momentum moving forward.

Are We Bullish Or Bearish?

As we are within the triangle we have to consider the market as neutral. A break and close above $0.18 would turn XRP bullish but a break beneath the triangle with a close below $0.16 will likely turn XRP bearish.

Where Can We Go From Here?

If the bulls can finally break the upper boundary of the triangle at $0.18, we can expect the first level of strong resistance to being located at $0.195 - which is provided by a bearish .382 Fibonacci Retracement level measured from the February high to the March low. This is closely followed by resistance at $0.20.

If the buyers continue to drive above $0.20, higher resistance is located at $0.206 (1.414 Fib Extension), $0.211, $0.218, and $0.225 (bearish .5 Fib Retracement). Beyond this, resistance lies at $0.2345, $0.24, and $0.254 (bearish .618 Fib Retracement).

On the other hand, if the sellers push beneath the triangle, support lies at $0.16. Beneath this, support lies at $0.156 (.382 Fib Retracement), $0.145 (.5 Fib Retracement), and $0.136.

We are likely to see $0.225 XRP in April if we can break above this current triangle and close above the $0.20 resistance.