The rally in Bitcoin and a few other altcoins enhances the likelihood of a brief price gain.
Since the start of the year, Bitcoin (BTC) has mostly been directionless, with bulls buying on dips and bears selling rallies. This indicates that the market is consolidating within a wide range, with both bulls and bears awaiting the next trigger to reclaim dominance.
Short-term volatility may increase following the United States Federal Reserve’s policy announcement on March 16, but the likelihood of a new trending move may be limited unless the Fed surprises. Bitcoin may remain in a bottoming formation for some time longer before bursting out.
A encouraging aspect of this year’s range-bound movement has been accumulation by both small investors and select whales. This has coupled with a continuous decline in the value of Bitcoin held on exchanges. According to CryptoQuant, the combined Bitcoin balances on the 21 exchanges it monitors have decreased to 2.32 million Bitcoin, the lowest level since August 2018.
Could Bitcoin break over the immediate resistance level, thereby boosting the altcoins? To learn more, let’s examine the charts of the top ten cryptocurrencies.
BTC/USDT
Bitcoin has recovered off the immediate support level of $37,000, indicating that bulls are defending this level. Buyers will now attempt to drive the price higher above the moving averages. If they succeed, it suggests that demand is high at current levels.
The bulls will then attempt to extend their advance by clearing the $42,594 overhead hurdle. If they succeed, it will be the first sign that the bears’ grip is slipping. The BTC/USDT pair might next rise to the overhead zone located between $45,400 and the rising channel’s resistance line.
If, on the other hand, the price diverges from the moving averages, it indicates that bears are unwilling to relinquish their advantage. The sellers will then attempt to reinforce their position by driving the price below the channel’s support line. This might be interpreted as a restart of the downturn.
ETH/USDT
The bulls are striving to defend the symmetrical triangle’s support line. A strong bounce off the current level might bring Ether (ETH) back to the moving averages, where the bears will almost certainly stage another robust defense.
If the price breaks below the moving averages, it indicates that sentiment is still unfavorable and traders are selling on relief rallies. This increases the likelihood of a breakdown below the triangle. The ETH/USDT pair may then revert to its downward trend and fall to $2,159.
In contrast to this idea, if bulls push the price above the moving averages, this indicates that selling pressure is easing. The pair might possibly ascend to the psychological level of $3,000 and then test the triangle’s resistance line.
BNB/USDT
BNB is seeking a comeback from the $360 to $350 support zone. This indicates that buyers are still piling in on dips near the support zone.
The buyers will need to push and sustain the price above the moving averages to signal that the bears’ grip may be slipping. Bulls will seek to push the BNB/USDT pair above $425 if the price remains above the 50-day simple moving average (SMA) ($389).
This bullish perspective will be rendered incorrect if the price continues to deviate from the moving averages and breaks below $350. This indicates that sentiment remains bearish and traders are continuing to sell on rallies. This might result in a pullback to the important support level of $320.
XRP/USDT
On March 11, the price of Ripple (XRP) rose above the downtrend line, but the rally was greeted with solid resistance at $0.85. This indicates that the bears have not yet abandoned their positions and are continuing to sell on rallies.
The price has retreated to the 20-day exponential moving average (EMA) ($0.75), which is expected to serve as a solid support. If the price recovers from its current level, buyers will seek to push and sustain the XRP/USDT pair over $0.85. If they succeed, the pair may rally to $0.91 and then test the psychological support level of $1.
This bullish view will be rendered incorrect if the price falls below the moving averages. This would imply that the break above the downtrend line was a bull trap. A break and closing below $0.69 would likely pave the way for a drop below $0.62.
LUNA/USDT
Terra’s LUNA token fell below $94 on March 11, but the bears were unable to push the price below the 20-day exponential moving average ($82). This is a bullish indicator, as it indicates that traders are purchasing on slight dips.
While the rising 20-day exponential moving average (EMA) favors buyers, the negative divergence on the relative strength index (RSI) shows that bullish momentum may be waning.
Bulls are aiming to re-establish the price above $94. If that occurs, buyers will attempt one final time to break over the overhead hurdle at $105 and resume the rise. If they succeed in doing so, the LUNA/USDT pair may climb to $115.
In the event that price reverses from the above zone, bears will attempt to plunge the pair below the 20-day exponential moving average.
SOL/USDT
On March 11, Solana (SOL) broke and closed below the strong support level of $81 and was followed by more selling on March 13. The bears, on the other hand, have been unable to break through the intraday low of $75 set on Feb. 24.
The RSI’s bullish divergence suggests that selling pressure may be easing. The bulls are seeking to re-establish the price above the March 14 breakdown mark of $81.00. If they can keep the price above $81, it will imply that the recent decline was a bear trap. Buyers will then attempt to push the SOL/USDT pair over the 20-day exponential moving average ($87).
This bullish perspective will be rendered worthless if the price reverses from its current position and breaks below $75. This would indicate that the bears have converted the $81 level to resistance. The duo may possibly go as low as $66.
ADA/USDT
Cardano (ADA) is attempting a comeback from the strong support level of $0.74, but the effort is lacklustre. A slight plus is that the RSI has begun to exhibit positive divergence, indicating that selling pressure may be easing.
Bulls must push and sustain the ADA/USDT pair above the 20-day exponential moving average ($0.85) to signify that the bears may be losing their grip. This might pave the way for a retest of the $1 breakdown level. This level is expected to see significant selling pressure.
In contrast to this premise, if the price reverses from the current level or the 20-day exponential moving average, it indicates that bears are pounced on every tiny gain. This increases the likelihood of a price break below $0.74. If this occurs, the decline might extend all the way to $0.68.
AVAX/USDT
On March 13, Avalanche (AVAX) fell below the uptrend line, signaling that the bears had beaten the bulls. Buyers’ attempts to push the price above the March 14 breakdown level were greeted with aggressive selling by the bears.
If bears continue to push the price below $64, the AVAX/USDT pair may fall to the significant support level of $51. The downsloping 20-day exponential moving average ($74) and the RSI in the negative region imply a seller’s advantage.
In the short term, this negative perspective will be invalidated if the price reverses from its current position and breaks above the moving averages. The bulls will then attempt to overcome the resistance at the descending channel’s downtrend line.
This is a critical milestone to monitor because the bulls have previously faltered at the downtrend line four times. If bulls can push the price above the channel and hold it there, the pair might rise to $100.
DOT/USDT
Polkadot (DOT) reversed lower from the 50-day SMA ($18) on March 13, but the bulls are refusing to let the price to fall below the 20-day exponential moving average ($17).
For several days, the price has been trapped in a narrow range between $16 and $19, signaling hesitation among bulls and bears. Typically, such range trading is followed by a sharp trending move.
If buyers can push the price above $19 and hold it there, the DOT/USDT pair may climb to the next overhead resistance level at $23. A break and closing above this level will indicate the conclusion of the downturn.
Alternatively, if the price reverses and falls below $16, the pair may retest the crucial support level of $14.
DOGE/USDT
On March 14, Dogecoin (DOGE) made a bold attempt to initiate a relief rally, but the bulls were met with severe resistance at the 20-day exponential moving average ($0.12).
If the bulls are unable to cross the overhead barrier, the bears will take advantage of the opportunity and attempt to push the pair below the psychological support level of $0.10. If that occurs, selling might accelerate further and the DOGE/USDT pair could fall under $0.06.
In contrast to this idea, if the price rises from its current level or rebounds from $0.10, this indicates bullish accumulation. To signify a likely trend change, buyers will need to push and keep the price above the 50-day SMA ($0.13).
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
