Bitcoin bounces back and begins B wave
Bitcoin futures (BTC) today saw their first decent gains since the fall from all-time highs precisely one week ago. The increase of $2,550 or 5.5% took BTC’s most active contract of March (BTC H21, soon shifting into April BTC J21) up to approximately $48,800.
We are marking this beginning of the B wave in our A, B, C correction. By a rule of thumb, if this correction is in a standard zig-zag formation, we can expect to see recovery take us to between $51,200 - $54,500. A flat-top could potentially take us as high as $56,500 before we get our final corrective wave C taking us lower.
The spot market is and has been leading the futures markets. On cash exchanges, Bitcoin has risen over 10% in the last 24 hours, according to Coinmarketcap.com, which also shows that the total market cap of the world’s largest cryptocurrency has come down roughly 10% since cracking $1 trillion only briefly on February 21st before falling back below the $1 trillion market cap which now sits at $911 billion.
Ethereum has been shadowing Bitcoin’s move on the spot markets and on the $ELX (Ethereum liquid index), recently posting the same gains as BTC on the $ELX and spot markets posting the same approximate 10% gain in spot markets.
Traders looking to get in can look to get in at the current price of approximately $49,000 for the April contract of BTC (BTC J21) with price targets of $52,000 - $54,500. Greyscale is trading at a pretty fair price relative to the amount of Bitcoin each share represents so traders not able to afford the larger CME contracts can enter into GBTC on tomorrow’s open with a target of approximately $50 per share.