Bitcoin and the majority of prominent altcoins are attempting to maintain a price above their immediate support levels, indicating a possible reversal of the short-term trend.
Bitcoin (BTC) and the majority of prominent cryptocurrencies are attempting a strong start to the new week by bouncing off their respective support levels.
Goldman Sachs is one of the first big US banks to complete an over-the-counter “cash-settled cryptocurrency options trade” with Michael Novogratz’s Galaxy Digital trading unit. This could persuade other large banks to explore enabling OTC cryptocurrency transactions.
Not only a few countries are seeing an increase in crypto acceptance. According to a forecast by cryptocurrency exchange KuCoin, crypto transactions in Africa would increase by almost 2,670 percent in 2022. Nourou, the founder of Bitcoin Senegal, believes that Africa’s thousand-plus percent growth rate could continue in the next years.
Analyst Willy Woo predicted that Bitcoin’s four-year price cycle, which is based on the block subsidy halving, may become obsolete in the future, as price action is likely to be controlled by supply and demand.
Could Bitcoin and other cryptocurrencies break through their overhead resistance levels? To learn more, let’s examine the charts of the top ten cryptocurrencies.
Bitcoin is currently encountering significant resistance at $42,594, indicating that bears are continuing to sell at higher levels. The bears are seeking to drive the price below the moving averages, while the bulls are striving to keep it above them.
Both moving averages have flattened out, and the relative strength index (RSI) is close to the midpoint, indicating that supply and demand are in balance. If the price of bitcoin falls below the moving averages, the BTC/USDT pair may fall to $37,000. This indicates that the duo may spend some additional time in the $42,594 to $37,000 zone.
On the other hand, if the price bounces strongly off the moving averages, it indicates that mood has shifted bullish and traders are buying on modest drops. This could increase the likelihood of a break above $42,594. If the pair maintains a break above this barrier, it may rise to the overhead zone between $45,400 and the ascending channel’s resistance line.
On March 19, Ether (ETH) fell below the overhead resistance level of $3,000, but the bears were unable to push the price below the moving averages on March 20. This indicates that bulls are purchasing on slight pullbacks.
Bulls will aim to push the price above $3,000 and test the symmetrical triangle’s resistance line. This is a critical level to monitor because a break and closure above it will indicate a possible trend change. After that, the ETH/USDT pair might surge to $3,500.
Alternatively, if the price breaks below the moving averages and falls below $3,000 or the triangle’s resistance line, it suggests that the pair may extend its stay inside the triangle for a few more days.
On March 17, Binance Coin (BNB) breached and closed above the 50-day simple moving average ($390), but the bulls were unable to extend their lead. The lengthy wick on the March 19 candlestick implies that higher levels of selling are imminent.
On March 20, the BNB/USDT pair reversed and fell to the 20-day exponential moving average ($386). A slight plus is that the bulls have managed to keep the price above this level. This shows that bulls are pinning their hopes on price declines.
If the price continues to rise and breaks above $407, the uptrend may continue, and the pair may rally to $425. This level may operate as a stumbling block, but if breached, the next possible stop may be $445.
On the other hand, if the price declines and falls below the 20-day exponential moving average, it indicates a lack of demand at higher levels. The pair may potentially fall to as low as $350.
On March 18, XRP bounced off the 20-day exponential moving average ($0.77) and crossed the downtrend line on March 19. The bears defended this level once more but were unable to push the market below the 20-day EMA. This implies aggressive purchasing on dips.
Both moving averages have begun to ascend, and the RSI has entered the positive region, indicating that the path of least resistance is upward.
If bulls can push and hold the price above the downtrend line, purchasing might accelerate higher and the XRP/USDT pair could reach $0.91. If this level is likewise breached, the psychological barrier at $1 may be the next stop.
To take the upper hand, bears must pull and hold the price below the 50-day SMA ($0.75).
Terra’s LUNA token jumped off the 20-day exponential moving average ($86) on March 18, signaling that traders continue to buy on dips.
The buyers have pushed the price up to the solid overhead resistance level of $96 where the bears are putting up a strong fight.
If bulls conquer this resistance level, the LUNA/USDT pair may retest the all-time high of $105. The bulls will need to push and keep the price above this level in order to signify the resumed advance. The rising 20-day EMA and positive RSI signal an edge for buyers.
In contrast to this idea, numerous short-term traders may close their positions if the price declines and breaks below the 20-day EMA. The pair may then fall below the pair’s strong support level of $70.
On March 19, Solana (SOL) made an attempt to break above the downtrend line, but the bears had other ideas. They held the level and dragged the price down to the 20-day exponential moving average ($87) on March 20.
The purchasers successfully defended the 20-day exponential moving average and will seek to push the price above the downtrend line once more.
If they succeed, the descending triangle pattern will be rendered invalid. Negative setup failure is a positive indicator since it traps numerous bears who may have sold in expectation of a breakdown. After that, the SOL/USDT pair could attempt a climb to $106 and possibly to $120.
On the other hand, if the price reverses and falls below the 20-day EMA, this indicates aggressive selling at higher levels. The pair might then gradually retrace its steps to the support level of $81.
Cardano (ADA) broke over the 20-day exponential moving average ($0.86) on March 19, and bulls resisted bearish attempts to drag the price down below the level on March 20. This indicates that buyers are attempting to initiate a relief rally.
The bulls will now attempt to push the price over and sustain it above the overhead resistance level of $1. If they succeed, it will imply a possible reversal of the trend. After that, the ADA/USDT pair might rally to the next overhead resistance level at $1.26.
Alternatively, if the price reverses from the current level or the overhead resistance and breaks below the 20-day exponential moving average, this indicates that the pair may remain range-bound between $1 and $0.74 for a few more days.
On March 18, Avalanche (AVAX) closed above the falling channel, and on March 20 and 21, the bulls effectively defended the breakthrough level.
The 20-day EMA ($78) has risen and the RSI has entered positive territory, indicating a buyer’s edge.
If bulls continue to move the price above $93, the AVAX/USDT pair may surge to the psychological milestone of $100. The bears may seek to block the advance at this level, but if bulls maintain their position, the probability of a break above it grows.
This bullish perspective will be invalidated if the price breaks below the moving averages and closes below the current level.
On March 19, Polkadot (DOT) broke and closed over the overhead resistance level of $19, but the bulls were unable to extend their lead. On March 20, the bears took advantage of this opportunity and dragged the price down below $19.
A slight plus is that the bulls have managed to keep the price above the moving averages. Moving averages that are flat and an RSI that is slightly over the midway imply that the bears may be losing their grip.
If the price climbs from its current position, bulls will seek to break through the $20 overhead barrier. If they succeed, the DOT/USDT pair might rebound to $23, where the bears will likely mount another significant attempt.
This bullish view will be rendered incorrect in the short term if the price breaks and sustains below the 20-day exponential moving average ($18). This might pave the way for a possible price cut to $16.
On March 19, Dogecoin (DOGE) broke and closed above the 20-day exponential moving average ($0.12), but the bulls were unable to retain the higher levels. On March 20, the bears dragged the stock back below the 20-day exponential moving average.
The 20-day exponential moving average is flattening out and the RSI is hovering at the midway, indicating that selling pressure may be easing. If buyers can drive the price over the 20-day exponential moving average and hold it there, the DOGE/USDT pair might surge to the 50-day simple moving average ($0.13). The bulls must overcome this obstacle in order to pave the way for a probable rally to $0.17.
Alternatively, if the price reverses from its current level and closes below the March 20 intraday low, the pair might fall to solid support at $0.10.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.