Crypto Frontline

BTCUSD (Coinbase)

Bitcoin is still on a rollercoaster ride, driven by the latest headlines related to the Middle East. The second half of last week saw BTC under as tensions escalated, but as of today, Monday, March 23rd, the risk appetite seems to be improving. 

This comes on the back of a 5-day truce that has just been announced. Markets are reacting positively to the news and Bitcoin jumped from $68k to $71k in less than an hour. As long as the conflict doesn’t escalate again, we think there is room for more gains during the upcoming days.

Buyers keeping the price above the $69k area would mean the leg up can extend towards the $74.5k again. We have highlighted the level as key resistance, so we have to see if buyers are able to break it on a second attempt. 

If the war is truly over, we believe the market should extend above that, which brings the $80k area to the picture. Traders shouldn’t be overly optimistic since the situation could take a negative turn at any point. 

ETHUSD (Kraken)

Speaking of Ether, expectations should follow a similar pattern. Easing of tensions in the Middle East would turn bullish for a coin. We are already seeing impulsive buying after retesting the 200 SMA on the 4h chart. 

At the same time, the price managed to get back above $2,150 and the ascending trend line. Should these levels hold, we expect the market to build momentum and continue rallying higher. On the upside, the first notable resistance comes at $2,350, which is where the upward move stalled last week. 

A second breakout attempt would be bullish, as it would suggest that bulls are squeezing the price action close to a key resistance. A break and hold above that area would open more room towards $2,500. As things stand right now, market optimism should drive valuations higher, but once again, this is a headline-driven market. 

XRPUSD (Kraken)

In the case of XRP, we see a short-term bounce above the $1.4 support, followed by a pullback lower. The move up came on the back of positive headlines related to the Middle East conflict, and now the market seems to be reassessing the situation. 

Looking at the broader picture, we think the path of least resistance is up, as long as XRP manages to stay above the $1.4 – $1.3 support area. We would target the bearish trend line drawn on the chart if that’s the case. 

A ceasefire can push the price towards $1.6, a key resistance area. For that to happen, we need a complete termination of hostilities and a slump in energy prices. The conflict has already done significant economic damage, but a solution after 4 weeks should help markets price in better outcomes for the rest of the year. Traders should keep a cautious tone, as headlines from both side continues to drive wild moves across the crypto space.