Analysts shared their crypto predictions

The bitcoin (BTC) rate rose above $28,000. On the morning of March 29, the value of the asset reached $28.1 thousand, recovering from a fall of more than $1,000 that occurred on March 27. Then BTC fell from $27.8 thousand to $26.7 thousand amid reports of a lawsuit filed by the US Commodity Futures Trading Commission (CTFC) against the Binance crypto exchange, writes RBC Crypto.

“XRP outpaced bitcoin in terms of dynamics”

Financial Analyst BitRiver Vladislav Antonov

The recovery of bitcoin began along with the growth of stock indices on Tuesday, March 28, against the backdrop of positive news from the banking sector and a decline in the dollar index. The US Federal Deposit Insurance Corporation (FDIC) said that deposits and loans from the bankrupt Silicon Valley Bank (SVB) are being transferred to US First Citizens Bank. Bitcoin rose to $27,261 and accelerated to $28,650 on Wednesday as S&P 500 futures rose.

The activity of buyers could be prompted by the news that the Binance crypto exchange officially announced support for the next major update of Ethereum (ETH) – Shapella. According to the latest data, this should happen on April 12th.

When the price of bitcoin passed the $27,700 level (the trend line from the top of $28,869), trading volumes increased. Above the $28,200 level, protective “stops” (stop-loss) on short positions began to work, which opened on the news of a lawsuit filed by the Commodity Futures Trading Commission (CFTC) against Binance, its head Changpeng Zhao and the heads of three other organizations that manage the Binance platform . $28,900 is left to test $30k. Closing the day above $30k opens the way to $34k.

XRP over the past week has outperformed Bitcoin, Ethereum and a number of other major cryptocurrencies by capitalization. For comparison, over the past seven days, the price of BTC and ETH has risen by 0.1%, while XRP has risen by 20%.

Ripple’s litigation with the SEC has been going on for three years and is now possibly nearing completion. In the fall, the company, together with the SEC, filed a petition for an immediate ruling with a date of March 31, 2023. And now, Ripple lawyers argue that the regulator has not been able to find clear criteria for classifying cryptocurrencies as securities.

There is a possibility that the altcoin rate is growing on the expectations of this event. However, keep in mind that XRP, like other altcoins, is highly susceptible to price manipulation. Therefore, the reasons for the appreciation of an asset can be ambiguous.

“Significant deterrent effect”

ENCRY Foundation co-founder Roman Nekrasov

The period of growth of bitcoin, which lasted two weeks, can be considered completed. The momentum that the cryptocurrency received after the Fed’s decision to help the banking sector is taken into account in the current price of bitcoin. The chart shows the formed resistance and support levels — $28-30 thousand and $25.5 thousand, respectively. Now the attention of market participants is focused on the situation around the CFTC lawsuit against Binance, and this is obviously a bearish momentum.

The good news is that bitcoin did not show a serious drop, except for a short-term drawdown of $1,000 immediately after the lawsuit was announced. But at the same time, it is obvious that we are now only at the very beginning of this story, and further events may have a more significant deterrent and even pressure effect on the bitcoin rate.

But I do not think that there is a reason to panic about the crypto market itself. As other lawsuits by US regulators against crypto companies show, the US financial authorities have no goal to strangle and kill the market. Their goal is to take it under control, bring clear and understandable regulation to it, so that its further growth does not threaten financial stability. Most likely, the CFTC case against Binance will last for several years, but will end in some kind of settlement with the payment of large but feasible fines. And most importantly, the lawsuit will provoke a new wave of discussions about the regulatory framework for cryptocurrencies, which in general is not so bad for the industry.

The clearer and clearer the rules, the higher the likelihood of institutional capital inflow into the cryptosphere. Thus, I believe that in the next few weeks, Bitcoin will continue to experience containment pressure from the news background due to the CFTC lawsuit against Binance, continue to trade in the $ 25-28 thousand range with rare and unsuccessful attempts to break through the resistance level. The scenario of Bitcoin going to $20,000 and below, as well as a sharp increase to $30,000, I think is unlikely.

During periods of such a flat trend, you should not count on a serious increase in altcoins. High volatility can be expected for speculative coins that crypto traders like to use to maximize profits during periods of calm.

“Rapid market recovery after shock”

0xprocessing co-founder Nikita Vassev

Bitcoin is now facing the best possible quarter close in two years. The rapid recovery of the market after the turmoil associated with a lawsuit against the largest crypto exchange Binance by the US Futures Trading Commission (CFTC) speaks of the strength of buyers.

At the same time, a significant load RSI indicator allows you to make an assumption about the correction after the growth of bitcoin. The pressure comes from traders who take profits using the growth realized by Bitcoin. The probability of a decline is also indicated by the growth of the ESP (Exchange Stablecoins Ratio) to the peaks of May 2021. When bitcoin is brought to exchanges faster than stablecoins, the purchasing power of the latter decreases. Changes may signal the potential for BTC correction. However, the active “printing” of new USDT (many consider stablecoins to be “gunpowder” for the growth of the market as a whole), on the contrary, hints at the faith of market participants in further growth.

Given the resilience shown against the backdrop of the shock experienced (claims from the regulators against Binance), the market is unlikely to see a significant decline in quotes.

The “health” of the exchange’s own token, BNB, largely depends on the further outcome of the conflict between it and the regulator. Binance has repeatedly coped with the pressure of the regulatory authorities of different countries. The trading platform actively cooperates with regulators, which makes it possible to believe in a positive outcome for the company.

The second largest cryptocurrency by capitalization, Ethereum, is showing growth against the backdrop of the publication of the Shapeella update date on the main network. The upgrade will take place on April 12th. Its main task is to open access to the withdrawal of coins from staking. It can be assumed that on the eve of the update, ETH will continue to show positive dynamics. At the same time, it is worth remembering the risks of a fall in the cryptocurrency rate if users start selling the coins withdrawn from staking.

XRP is demonstrating positive dynamics on the news about the possible imminent resolution of the conflict between the cryptocurrency issuer Ripple and the US Securities and Exchange Commission (SEC). Market participants are waiting for the company to be able to prove its innocence.

The SEC accuses Ripple of illegally issuing and distributing securities in the form of XRP tokens. The future of the entire market depends on the outcome of the conflict. Recognition of the rightness of Ripple will give hope to other industry participants to get rid of similar SEC claims.

It can be assumed that in anticipation of positive news, in the absence of market shocks, XRP will continue to rise.