Bitcoin and Ethereum face resistance at key levels.

By Mary Liu, BitpushNews

On Wednesday, the trading heat in the cryptocurrency market cooled slightly, with the total market value of cryptocurrencies falling by 1.2% to $2.6 trillion by the close of the U.S. stock market that day. Bitcoin and Ethereum face resistance at key levels.

Bitcoin reached a high of $71,754 on the day, then pulled back to $69,793, a decrease of 1.2%. The current trading price of Ethereum is $3,516, a decrease of 1.35% in the past 24 hours.

In the altcoin market, blockchain AI concept projects Fetch.ai, SingularityNET, and Ocean Protocol's native tokens surged in a proposed merger plan, referred to as the "Artificial Superintelligence Alliance." The tokens of these projects saw significant increases, with Fetch.ai (FET) rising by 15%, SingularityNET (AGIX) rising by 12%, and Ocean Protocol's token OCEAN experiencing the largest increase of over 36% in the past 24 hours. The three projects submitted integration proposals to their respective governance communities today and initiated a 14-day consultation period. The proposal vote is expected to take place between April 2nd and April 16th.

Base Chain continues to lead the meme trend, with the most popular BRETT rising by 11% in the past 24 hours. BRETT is inspired by the cartoon character drawn by artist Matt Furie, and its market value once approached $500 million. Coingecko wrote in a newsletter, "It is now clear that meme coins have evolved from a cultural movement into a critical tool driving the adoption of new blockchains."

However, this speculation has attracted the attention of regulatory authorities. The UK Financial Conduct Authority (FCA) issued a warning to Key Opinion Leaders (KOLs) to be cautious of "misleading" cryptocurrency meme projects, stating that paid promotions require approval from regulatory authorities to avoid potential criminal charges. The FCA has listed "meme projects" as a key area of online misconduct.

Cryptocurrency market "in the midst of a bull market"

According to a recent report by Grayscale, market cycle indicators show that, with strong fundamental and technical support, the cryptocurrency market is "currently in the midst of a bull market."

Despite Bitcoin's price rising from $63,800 to $70,000 in the five days leading up to March 27th, only $151 million of leveraged short positions in the BTC futures market were liquidated. This indicates that despite the net outflow of $888 million from the U.S. Bitcoin spot ETF last week, shorts remain cautious.

On the positive side, Bitcoin has shown resilience, dropping from $73,757 on March 14th to $60,795 on March 20th without causing panic among spot ETF investors. This week, there has been a reversal in spot ETF flows, with a total net inflow of $418 million recorded on March 26th.

Furthermore, the Grayscale report stated that the amount of Bitcoin held by exchanges has significantly decreased, "down 7% since the local peak of Bitcoin supply in May 2023," indicating that part of the supply shortage is due to spot Bitcoin ETFs transferring BTC to custody cold wallets for long-term storage, as investors anticipate future price increases.

Has the pullback before Bitcoin's halving ended?

Analyst Rekt Capital stated on X platform that the price adjustment before Bitcoin's halving is consistent with historical retracements before halving. In an article on March 25th, he wrote, "The pullback before the halving occurred as expected. Now Bitcoin is back near $70,000."

In a video analysis yesterday, Rekt Capital stated that if the historical high of $69,000 becomes a support level, the price of Bitcoin may break through to a new all-time high, saying, "Bitcoin has broken through its historical high, preparing for the end of the pullback before the halving."

According to a research report by Bitfinex analysts, last week's Bitcoin price adjustment indicates that the price has formed or is close to forming a local bottom. The analysts stated, "We believe that the pullback from the current historical high of $73,666 to approximately 17.5% correction indicates that we are close to establishing a local bottom, and in fact, the market has already begun to follow this pattern."

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