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The market data is provided by the HitBTC exchange.

Wall Street strategist Thomas Lee has formulated a new contrarian index, called the Bitcoin Misery Index, BMI, which can be helpful for traders. Lee is bullish on Bitcoin and has retained a year-end target of $25,000, which results in a gain of more than 160 percent from the current levels.

We believe it’s better to buy only after the cryptocurrencies stop falling because in a bear market people dump their holdings at ridiculous prices. So, let’s check if any of the digital currencies has formed a bottom.

BTC/USD

Bitcoin broke below the critical support of $9,500, yesterday, March 09, and hit an intraday low of $9,000.02, which is just below the 50 percent Fibonacci retracement of the recent pullback from $6,075.04 to $12,172.43.

The bulls bought the dip and pushed prices back above $9,500. The BTC/USD pair is still not out of the woods because it is still trading inside the descending channel.

If the bulls sustain above the $9,500 levels, a range bound action is likely to ensue where we can expect the bulls and the bears to battle it out between $9,500 and $12,200 levels.

On the contrary, if the bears again break below yesterday’s low of $9,000.02, the price might fall towards 61.8 percent of the $8,404 retracement level.

We would like to see clarity and a support level holding before suggesting any trades.

ETH/USD

Yesterday, Ethereum fell according to our expectation to $637.63, but currently, the bulls are attempting a pullback.  

The ETH/USD pair is currently in a downtrend as the price is trading inside the descending channel and below both the moving averages. Any rebound from the current levels is likely to face selling pressure at one of these resistance zones.

It is bears’ advantage, until the bulls break out and sustain above

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