While the U.S. equity markets have rebounded strongly from February 24th’s lows, Bitcoin (BTC), has fallen from its recent highs. This suggests that investors might be buying risky assets, and decreasing exposure to assets deemed safe.
According to recent reports, Putin could send a delegation of Russian diplomats to Ukraine for negotiations. This raises hopes that the conflict will end sooner than most analysts believe.
Analysts believe that the U.S. Federal Reserve will not raise rates aggressively during March because of the geopolitical environment. Mohamed El-Erian, chief economic advisor at Allianz, believes that a March 50 basis-point rate hike is “completely out of the question.”
Everyday cryptocurrency market performance. Source: Coin360
Dr. Raullenchai, co-founder and CEO at blockchain network IoTeX told Cointelegraph that investors should not sell their crypto holdings in the hope of purchasing again at a reduced price. He warned that the market could reach “easily new all-time highs” by the end.
Will bulls capitalize on the strong rebound from lower levels? Or will bears sell at higher levels, pulling the price down. Let’s look at the charts for the top 10 cryptocurrencies to see what happens.
On February 24, Bitcoin formed an out-of-day candlestick pattern. Although the bears drove the price lower than the $36,250 support, the candlestick’s long tail indicates that bulls are buying at lower levels.
Daily chart of BTC/USDT Source: TradingView
The BTC/USDT pair may rally to the overhead resistance of $45,821. If buyers push the price higher than the moving averages, This would indicate that bears are losing their grip. A bottom is more likely if the price does not drop below the moving averages for a longer period of time.
If the price falls below the moving averages, this will indicate that sentiment is still negative and that traders are buying rallies. The bears will attempt to keep the pair below $36,250 by trying again. The pair could then drop to the strong support zone of $34,322 to $32,917 if they succeed.
The support line for the symmetrical triangle broke below Ether (ETH), but bears couldn’t sustain lower levels. Strong buying is evident at lower levels, as evidenced by the candlestick’s long tail.
Daily chart of ETH/USDT Source: TradingView
The ETH/USDT price pair has re-entered into the triangle. Bulls are trying to push the price higher than the moving averages. The pair could reach the resistance line of triangle if they succeed. Breaking and closing above this level could signal a possible new uptrend.
Contrary to what you might think, bears will try to lower the pair below the support triangle line if the price falls from the moving averages. The pair could test $2,300 if that happens. This support could also give way, and the drop could reach $2,159
Binance Coin (BNB), plummeted to the strong resistance zone at $330- $320 on February 24, where buyers intervened and stopped the slide. The price rebound was strong enough to push it back above $350, the breakdown level.
Daily chart BNB/USDT TradingView
The bulls want to push the price towards the moving averages, where the bears will mount a strong defense. If the price drops below the moving averages, then the bears will attempt to keep the BNB/USDT exchange below $350 and challenge its support zone.
If bulls push the price above the 50 day simple moving average (411) it will indicate that selling pressure is decreasing. The overhead resistance of $445 may be reached and the pair could rally.
Although Ripple (XRP), recovered from the $0.62 support on February 24, the bulls couldn’t push the price higher than the overhead resistance at SMA 50 ($0.72). This led to the formation of a Doji candlestick pattern.
Daily chart of XRP/USDT Source: TradingView
The bulls are trying to push the price higher than the moving averages. The XRP/USDT currency pair could rally to the downtrend. To signal a change in the short-term trend, the bulls must clear this hurdle. The pair could then try an up-move towards $0.91, and eventually to $1.
If the price falls below the moving averages, this will indicate that bears are continuing to sell rallies. The bears will resume selling and pull the pair towards the strong support zone of $0.62 to $0.55.
Cardano (ADA), continues to trade in a strong downtrend. The price has traded below $1 for the last few days. The candlestick’s Feb. 25 long tail shows that bulls bought $0.74 dip.
Daily chart ADA/USDT Source: TradingView
Bears have control of the market, as evidenced by the downsloping relative strength index (RSI), and moving averages that are below 37. Bears will continue selling on rallies if the price drops below the $1 overhead resistance. The bears will attempt to lower the pair below $0.74.
However, if the price rises above $0.90, it could lead to the break at $1. This resistance level is crucial for bears to protect as a break above it would indicate that markets have rejected lower levels. The resistance line at the descending channel could be challenged by the pair.
Solana (SOL), which recovered strongly from its intraday low of February 24, closed above the breakdown level at $81. The candlestick’s long tail shows that there was strong buying at lower levels.
Daily chart of SOL/USDT Source: TradingView
To indicate that selling pressure is decreasing, the bulls will need to clear the overhead hurdle at 50-day SMA ($110). The overhead resistance at $122. could be reached by the SOL/USDT pair.
A break and close at or above this level will complete the double bottom pattern. The pattern target is $163.
If the price falls below the current level, bears could challenge the $81 support and try to reestablish the downtrend. A break below $75 could lead to increased selling pressure.
Avalanche (AVAX), tried to surpass the moving averages on February 23rd but the candlestick’s long wick indicates that strong selling has occurred at higher levels. On February 24, the bears pulled the price down to $64, but the bulls purchased this dip. This indicates that bulls are buying dips and bears are selling rallies.
Daily chart of AVAX/USDT Source: TradingView
Both moving averages are sloping downward and the RSI is just above the midpoint. This indicates a slight advantage for bears. The AVAX/USDT pair may retest $64, if the price stays below the moving averages. Breaking and closing below this level could lead to a fall to $51.
If bulls push the price higher than the moving averages, it could lead to a rise to the channel’s downtrend line. If the price breaks or closes above this level, it could indicate a change in trend.
Related: Bitcoin whales boost BTC price rebound as stocks recover from Russia-Ukraine shocks
Terra’s LUNA token created an outside-day candlestick on February 24. The bears managed to pull the price down below the 20-day exponentially moving average ($56), but they couldn’t sustain the lower levels.
Daily chart of LUNA/USDT Source: TradingView
The LUNA/USDT currency pair rebounded strongly from the lows, and closed above the 50 day SMA ($61). This is a sign of aggressive buying during dips. Bulls are in control. The RSI has risen to the positive territory and the 20-day EMA is starting to rise.
The $70 resistance is still in place. Bulls can clear this obstacle and the pair could rally to the overhead zone of $85 to $87. The reverse could happen if the price drops below $70.
Dogecoin (DOGE), which rebounded from the strong support of $0.10 on February 24, closed above the breakeven level at $0.12. The bulls are not able to maintain the buying momentum. This indicates a lackluster demand at higher levels.
Daily chart of DOGE/USDT Source: TradingView
Bears will attempt to lower the price to $0.12, challenging the psychological support of $0.10. Breaking and closing below this level is a major negative. The DOGE/USDT currency pair could fall to $0.06.
The buyers may try to push the pair higher than the moving averages if the price rises from its current level. The pair could rally to $0.17 overhead resistance if they do so. If the bears break or close below this level, it could signal that they are losing their grip.
Polkadot, (DOT), fell below strong support at $15.80 on February 24, but the bears couldn’t sustain lower levels as shown by the long tail of the day’s candlestick. This is a sign of strong buying at lower levels.
Daily chart of DOT/USDT Source: TradingView
Bears are slightly ahead of the pack due to the RSI in negative territory and the downsloping moving Averages. Bears will likely mount a strong defense within the overhead zone between 20-day EMA ($18.15), and the downtrend line.
If the price drops from this area, the bears will attempt to pull the USDT/DOTT pair below $15.80. The pair could fall to $13.35, if they succeed.
If the price moves above the 50-day SMA ($20.71), this negative view will be invalidated. This could lead to the pair reaching $23.19.
Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.
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Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.