Since the beginning of the year, Bitcoin (BTC), has been largely in a directionless state. The bulls have been buying dips and the bears selling rallies. The price is consolidating within a wide range, with both bulls and bears waiting for their next trigger to assert their dominance.
Although volatility could increase in the short term after the United States Federal Reserve makes its March 16 policy decision, it is unlikely that the Fed will surprise us with a new trending move. Bitcoin may remain in a bottoming position for a while before it breaks out.
Everyday cryptocurrency market performance. Source: Coin360
The accumulation of small investors and select whales has been a positive sign in the range bound action this year. This has been accompanied by a steady drop in Bitcoin balances on the exchanges. According to CryptoQuant, the combined Bitcoin balances across the 21 exchanges it covers are now at 2.32 million Bitcoin. This is the lowest level since August 2018.
Is Bitcoin able to break the immediate resistance and push altcoins higher than Bitcoin? Let’s look at the charts for the top 10 cryptocurrencies to see if we can find out.
Bitcoin has fallen from $37,000 as its immediate support, which indicates that bulls are trying to defend it. Buyers will now attempt to push the price higher than the moving averages. They will be able to push the price above the moving averages if they succeed. This will indicate strong demand at lower levels.
Daily chart of BTC/USDT Source: TradingView
The bulls will attempt to extend their up-move by clearing $42,594’s overhead hurdle. If they do so, it will be the first sign that the bears are losing their grip. The BTC/USDT pair may then reach the overhead zone of $45,400 and the resistance level of the ascending channel.
If the price falls below the moving averages, this will indicate that bears are not willing to give up on their advantage. Sellers will attempt to consolidate their position by lowering the price below the channel’s support line. This could signal the resumption or the continuation of the downtrend.
The bulls attempt to defend the support line for the symmetrical triangle. Ether (ETH), which is currently at the moving averages, could see a strong rebound. The bears will likely mount a strong defense.
Daily chart of ETH/USDT Source: TradingView
If the price falls below the moving averages it will indicate that sentiment is still negative and traders are buying on relief rallies. This will increase the chance of the price breaking below the triangle. The ETH/USDT pairing could then resume its downward trend and fall to $2,159.
Contrary to popular belief, bulls pushing the price higher than the moving averages will indicate that selling pressure is decreasing. The price could rise to $3,000 psychologically and then challenge the resistance line.
BNB is trying to bounce back from the support zone of $360 to $350. This means that buyers will continue to accumulate dips close to the support zone.
Daily chart BNB/USDT TradingView
To indicate that bears are losing their grip, buyers will need to push the price higher than the moving averages. The bulls will push the BNB/USDT pair up to $425 if the price remains above the SMA (50-day simple moving average) ($389).
If the price falls below the $350 level, this positive outlook will be invalidated. This will indicate that traders continue to sell rallies and the sentiment is negative. This could push the price below $320.
The Ripple (XRP), price rose above the downtrend line March 11, but it was met with resistance at $0.85. This indicates that the bears are not giving up yet and continue to sell rallies.
Daily chart of XRP/USDT Source: TradingView
The price is now at the 20-day exponential moving mean (EMA) ($0.75). This support will likely be strong. The buyers will attempt to push the XRP/USDT price above $0.85 if the price recovers from its current level. The pair could rise to $0.91 if they succeed and then climb to psychological resistance at $1.
If the price falls below the moving averages, this positive view will be invalidated. This would indicate that the price break above the downtrend line was a bull trap. Breaking below $0.69 could lead to a drop to $0.62.
Terra’s LUNA token fell below $94 on March 11, but the bears couldn’t pull the price down to the 20-day EMA ($82). This is a positive sign, as it indicates that traders buy on every minor dip.
Daily chart of LUNA/USDT Source: TradingView
The rising 20-day EMA is a positive sign for buyers. However, the negative divergence in the relative strength indicator (RSI), suggests that bullish momentum could be weakening.
The bulls want to get the price above $94. If this happens, buyers will attempt to overcome the $105 overhead hurdle and resume the uptrend. The LUNA/USDT pairing could rally to $115 if they do so.
If the overhead zone is reached, bears will attempt to lower the pair below the 20 day EMA.
Solana (SOL), broke below strong support at $81 on March 11, and then followed that up with more selling on March 13. The bears were unable to break the Feb. 24 intraday low of $75, which they set on March 11.
Daily chart of SOL/USDT Source: TradingView
Positive divergence in the RSI may indicate that selling pressure is decreasing. Bulls are trying to push the price above $81 on March 14, which was the breakdown point. The bulls will attempt to push the price back above the breakdown level at $81 on March 14. This will indicate that the recent collapse may have been a bear trap. The buyers will attempt to push the SOL/USDT price above the $20 EMA ($87).
If the price falls below $75, this positive outlook will be invalidated. This will indicate that the bears have turned the $81 level into resistance. The pair could drop to $66.
Cardano (ADA), is trying to rebound from the strong support at $0.74, but it lacks conviction. One minor plus is that the RSI has begun to show positive divergence. This indicates that selling pressure might be reducing.
Daily chart ADA/USDT Source: TradingView
To signal that bears are losing their grip, the bulls will need to push the ADA/USDT price pair higher than the 20-day EMA ($0.85). This could lead to a retest at $1 of the breakdown level. This level is expected to attract strong sales.
Contrary to popular belief, a price drop below the current level or 20-day EMA will signal that bears are chasing every small rally. This will increase the chance of a break below $0.74. The downtrend could reach $0.68 if that happens.
Related: Bitcoin track $39K ahead of Europe’s vote on Proof of Work legality
Avalanche (AVAX), which broke below the uptrend level on March 13, indicated that the bulls have prevailed over the bears. The bears were able to sell strong against the sellers’ attempts to push the price higher than the breakdown level of March 14.
Daily chart of AVAX/USDT Source: TradingView
The strong support at $51 could be reached if bears fall and keep the price below $64. A downsloping 20 day EMA ($74), and a negative RSI indicate an advantage for sellers.
If the price rises above the moving averages, this bearish view will be invalidated in the short-term. The bulls will attempt to overcome the barrier at descending channel’s downtrend line.
This level is important to watch because bulls have failed at the downtrend on four occasions. The pair could rally to $100 if bulls push the price higher than the channel.
Polkadot’s (DOT) price fell from the 50-day SMA ($18), but the bulls won’t allow it to fall below the 20-day EMA ($17).
Daily chart of DOT/USDT Source: TradingView
For the past few days the price has remained in a narrow range of $16 to $19, which indicates indecision between the bulls or the bears. This type of trading usually follows a sharp trending move.
The DOT/USDT pair could rise to $23. If buyers continue pushing the price higher than $19, it may be possible for the pair to rally above the next overhead resistance of $23. If the price breaks or closes above this level, it could signal that the downtrend is over.
Alternativly, the pair could test the critical support at 14 if the price falls below $16.
Dogecoin (DOGE), an altcoin, attempted to launch a relief rally on February 14, but was met by stiff resistance at the 20 day EMA ($0.12).
Daily chart of DOGE/USDT Source: TradingView
If the bulls fail the overhead hurdle, then the bears will take their chances and attempt to sink the pair below $0.10. The selling momentum could continue to pick up and the DOGE/USDT exchange may slip to $0.06.
Contrary to the assumption, if prices rise from their current levels or rebound off $0.10 it will indicate accumulation by bulls. To signal a change in trend, buyers will need to push the price higher than the 50-day SMA ($0.13).
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.