March 2021 has been a very interesting month for cryptocurrency traders. Even though Bitcoin dominated headlines and trading volumes as the most sought after digital currency across all major exchanges, there has also been major shifts in trading strategies and amounts. Given the recent price movement, this comes as no surprise, but we should not take our eyes off the non-fungible token market, which has been upgraded from tulip mania status to a potentially useful platform for art dealers.

Bitcoin traders appear to be getting comfortable with seeing $60,000 as a support level. There seem to be a climate of caution among traders who came back to the market after raking in profits when BTC/USD sailed past $61K. What is interesting about BTC in March is that this has been a month filled with fundamental news updates, and we are seeing this influence being reflected on the markets; in fact, we can comfortably say that this is the reason a $60K support level has developed.

This $60K support level is the level at which the market may choose to move back towards when day traders take brief positions. In other words, this support level is not the point we are looking for in our analysis of BTC/USD; it is in the region of $65K for the more bullish traders. Let's briefly review the salient fundamental updates related to Bitcoin in March so that we can better understand why this token could see a few trading sessions in which the $65K mark will be touched:

  • Members of the United States Federal Reserve Bank are pleased with the way the American economy is recovering in the wake of the coronavirus pandemic, and they are already thinking about raising interest rates next year.

  • After Canada, Brazil became the second in the Americas to allow an exchange-traded fund for Bitcoin. Market regulators in Mexico are expected to approve a similar instrument later this year.

  • Investment banking giant Morgan Stanley will roll out a couple of mutual funds that will allow investors to indirectly participate in Bitcoin trading.

All in all, the rest of March should be interestingly positive for Bitcoin traders.