Crypto Outlook for March 2023

Key Facts

• Bitcoin has gained positive momentum at the start of 2023
• Optimism, Polygon, Decentraland, and VeChain are the top altcoin projects to watch in 2023
• The evolving regulatory framework could have a great impact on the crypto market in March 2023, with institutional investors joining the space and web3 technologies opening doors for new business applications

Bitcoin Outlook

The Bitcoin market has been on a wild ride lately. It started the year on a high note, but it seems like the upward momentum has slowed down. Some experts predict that the Bitcoin price could correct for the rest of March.

However, there are still reasons to be optimistic. The weekly chart shows that the Bitcoin price has broken out from a long-term descending resistance line, and reclaimed a key support level. This implies that the probable course of action for the future is an upward movement towards the resistance area of $30,700.

On the other hand, the daily chart looks a bit more bearish. The Bitcoin price has fallen below a key resistance area, and completed a five-wave upward movement. This suggests that the price would decrease to a support level of $19,217-$21,582. An increase above the yearly high of $25,424 would indicate that the upward movement will continue, with highs near $27,000 expected. Overall, the BTC price outlook for March is uncertain, and investors should keep a close eye on the market to adjust their strategies accordingly.

Altcoin Outlook

Altcoins refer to any cryptocurrency that is not Bitcoin, the original digital currency. These altcoins have potential for growth and are accessible to investors on a budget. Here are some of the top altcoins to watch for in March:

Optimism (OP)

Optimism’s mainnet protocol upgrade, Bedrock, will go live on March 15. This upgrade is expected to improve security, performance, and prepare for the multichain future of Optimism. The price of OP is likely in an upward movement, with a correction to end at around $2.10 before continuing to $3.80. However, a fall below $1.42 would invalidate this bullish forecast, leading to a drop towards $0.70.

Polygon (MATIC)

Polygon will launch the Polygon zkEVM mainnet beta on March 27, which is touted as the future of Ethereum scaling. However, unless Polygon reclaims the $1.28 horizontal resistance area, the trend is considered bearish. Therefore, a drop to the $1.06-$1.15 support levels could occur. Should it regain the territory, the value may surge to $1.55.

Decentraland (MANA)

Decentraland is organizing a fashion week event in the metaverse. The event will take place from March 28 to 31, and will feature interoperability between virtual worlds. Designers can participate in the Decentraland, and also in the Spatial and Over metaverses. Currently, the price of Decentraland has fallen below a descending resistance line since February, which is seen as a bearish pattern when combined with the horizontal support area at $0.062. If the price falls below the support area, it could reach the 0.618 Fib retracement support level at $0.50. However, if the price breaks out from the line due to the upcoming event, it could increase to $0.84.

VeChain (VET)

The HiVe summit will be held on March 4, where the VeChain Foundation will present a platform for discussion and ideation for a future centered around Web3 and sustainable development. The VET price is considered bullish, with an increase towards $0.040 expected. Nevertheless, a breach of the ascending support line may trigger a decline towards $0.020.

Regulatory Developments

The regulatory landscape in the crypto market remains complex and evolving. In February, Binance USD (BUSD), the stablecoin of leading crypto exchange Binance, briefly lost its peg to the U.S. dollar following regulatory actions by the New York Department of Financial Services and news that The Securities and Exchange Commission (SEC) intends to take legal action against Paxos Trust for breaching laws aimed at safeguarding investors. Binance has also faced a number of regulatory probes and customer outflows, and investors are closely watching the exchange’s health. Meanwhile, the SEC has proposed a new rule that could make it difficult for crypto exchanges like Coinbase to legally safeguard institutional customers’ crypto assets, and has charged executives of Terraform and Kraken with securities fraud and unregistered staking services, respectively.

This regulatory uncertainty and scrutiny could lead to increased volatility in the crypto market in March. Investors may keep a close watch on Binance in March, and become cautious and hesitant to invest, leading to a drop in prices. On the other hand, if there is regulatory clarity in March, it could provide a boost to the market and attract more institutional investors. Overall, the impact on the crypto market for March will depend on how these regulatory issues evolve and whether any further actions are taken.

Adoption and Integration

The crypto industry has seen an increased rate of adoption despite the bearish market in 2022. Institutions are actively investing in crypto, and more consumers are viewing cryptocurrency as a viable payment method. The adoption of cryptocurrencies is getting a significant boost from the increased investments made by institutional investors.

More institutional investors joining the bandwagon will accelerate crypto mass adoption, which can broaden crypto’s path to becoming a mainstream asset class. Web3 technologies are creating new opportunities for businesses, especially the luxury segment. Samsung and Huawei, among other major smartphone manufacturers, are venturing into the Web3 infrastructure. On March 22nd, the Solana Saga Phone, which is powered by Google’s Android, will be launched. The phone, priced at $1,000, has a decentralized app store, which allows users to avoid fees. It also includes a seed vault for storing private keys and a software development kit to assist dApp developers.

What to watch out in March

The crypto market has been going through a consolidation phase recently, following a strong start to the year. Despite this, investors are still eager to find opportunities to capitalize on any potential bull run that may come their way. One of the most anticipated events in the cryptocurrency world that could cause potential volatility in Ethereum prices is the upcoming Shanghai upgrade, scheduled for March.

Since the Ethereum merge was completed last year, staked ETH has been locked on the network. The developers of Ethereum are aiming for March 14th as the date for the Shanghai upgrade to be tested on the Goerli test network. The Shanghai upgrade, which may be pushed to late March or early April, will allow users to remove their staked ETH coins for the first time. This event is expected to draw a lot of attention from investors who are interested in staking their ETH.

Investors can anticipate some potential volatility in Ethereum prices tied to the upcoming Shanghai upgrade in March. However, the upgrade is also expected to offer new opportunities for those who are interested in staking their ETH. With the crypto market currently in a consolidation phase, keeping an eye on events like the Shanghai upgrade could be crucial for investors looking to stay ahead of the curve.

Conclusion

Bitcoin and major cryptocurrencies have gained positive momentum at the start of 2023, with altcoins showing phases of price breakouts. Despite inflation worries and potential Federal Reserve interest rate hikes, top cryptocurrencies performed well in February. While experts predict a potential correction for Bitcoin in March, altcoins such as Optimism, Polygon, MANA, and VeChain present good investment opportunities. The regulatory landscape in the crypto market remains complex and evolving, with regulatory scrutiny faced by Binance and other companies. Despite these challenges, the crypto community is hopeful for continued growth and development in March.