Bitcoin (BTC), and other altcoins, broke above their immediate resistance levels. However, they are having trouble maintaining higher levels. This indicates that bears aren’t ready to give in.
According to reports, Terra sent 125 million USDT (125 million dollars) to Binance on March 21, which may explain the sudden spike in Bitcoin’s value on March 22.
This could signal the start of the $3 billion in Bitcoin the firm intends to buy. Terra completed a similar transaction on March 23rd, which could increase sentiment in the short term.
Everyday cryptocurrency market performance. Source: Coin360
This news may provide a temporary spike in bitcoin, but it is unlikely that it will alter the main trend. The strong correlation between Bitcoin and the S&P 500 is still evident. It rallied sharply from March 15-22. The next few days will see crypto traders taking cues from S&P 500’s performance.
Can bulls overcome the overhead hurdle to start an up-move for Bitcoin and other altcoins like Bitcoin? Let’s look at the charts for the top 10 cryptocurrencies to see how we can find out.
Bitcoin broke above $42,594 as the immediate resistance on March 22, but the bulls couldn’t sustain higher levels. This indicates that the bears will continue to defend this level.
Daily chart of BTC/USDT Source: TradingView
The bulls didn’t lose much ground against the overhead resistance on March 23, which is a minor plus. This indicates that traders aren’t closing down their positions near the resistance because they expect the up-move will continue.
If buyers continue to push the price above $42,594, then the BTC/USDT exchange could gain momentum and rally up to $45,400, where the bears might again mount a strong defense.
If the price falls below the moving averages, this positive outlook will be invalidated. The pair could prolong its stay within the $37,000- $42,594 range for a few days if that happens.
Ether (ETH), which broke above $3,000 psychologically, reached the resistance line of symmetrical triangles on March 22. The candlestick’s long wick indicates that bears are fighting to defend the resistance line.
Daily chart of ETH/USDT Source: TradingView
The bears will attempt to bring the price down below the moving averages. The triangle could be broken if the price bounces off of this support. The ETH/USDT pairing could make a new up-move if that happens. The pair could rally to $3500, then move toward the target of $3,907.
If the price falls below the moving averages, this bullish outlook will be null. This will signal that the pair could spend more time within the triangle.
BNB bounced off of the 20-day exponentially moving average (EMA), ($389) on March 21. This indicates buying on dips. On March 22, the bulls drove the price higher than the overhead resistance of $407, but it could not maintain the higher levels.
Daily chart BNB/USDT TradingView
The 20-day EMA is slowly rising and the RSI has moved into the positive territory. This indicates buyers are in the lead. The bulls will push the price higher than the $407-$410 resistance zone. The BNB/USDT pair may attempt to rally to $445 if they succeed.
The moving averages could be reached if the price falls from its current level. This support is important to keep an eye on because if the bears push the price lower than the moving averages, it could lead to a decline towards $350.
However, if the price bounces off the moving averages it will indicate that bulls are accumulating lower levels. The pair will be pushed to $445 by the buyers.
Ripple (XRP), broke above the downtrend line and closed higher on March 21. However, bulls are having difficulty continuing the up-move. This is a sign that demand dry up at higher levels.
Daily chart of XRP/USDT Source: TradingView
The price is down, and bears are trying to push the XRP/USDT pairs below the downtrend. The pair could fall to the moving averages if they succeed.
If the moving averages rebound strongly, traders will continue to buy at lower levels. The bulls will attempt to push the price towards $0.91.
However, a price break below the 50-day SMA ($0.76) will indicate that the breakout above the downtrend line was a bull trap. This could lead to a drop in the pair to $0.68.
Terra’s LUNA token soared above the overhead resistance of $96 on March 21, but the bulls couldn’t sustain higher levels. This indicates that the bears are aggressively defending this level.
Daily chart of LUNA/USDT Source: TradingView
Positive news is that bulls are not giving up on the resistance. This means that traders aren’t closing out their positions quickly as they anticipate a higher move.
The LUNA/USDT pairing could reach its all-time high of $105, if the price breaks above $96, and closes above $96. Breaking and closing above this level could signal the resumption or continuation of the uptrend.
If the price falls below the 20-day EMA ($88), this positive outlook will be invalidated in the short-term. This could lead to a decline in the pair to $82 or later to $75.
Cardano (ADA), broke above the 50 day SMA ($0.94) March 22 and reached overhead resistance at $1. The overhead resistance was reached at $1 on March 23, after strong buying. This indicates that the downtrend could be ending.
Daily chart ADA/USDT Source: TradingView
The ADA/USDT currency pair could gain momentum if bulls can keep the price above $1. The price could rise to $1.26. Although bears could pose a challenge at this level, if bulls overcome these resistances, the pair can extend its rally up to $1.60.
Contrary to popular belief, bears will continue to sell aggressively at higher prices if the price falls below $1. The price could drop to the 20 day EMA ($0.89) which is a crucial level to watch.
This level may be a sign that bulls are accumulating on dips, while a break below $1 will indicate that it was a bull trap.
For the past few days, Solana (SOL), has been wedged between the moving averages. The bears are selling at the 50-day SMA ($93), while the bulls buy at the 20-day EMA (88).
Daily chart of SOL/USDT Source: TradingView
This trading pattern of tight ranges is unlikely to last long. The descending triangle pattern of the triangle will be invalidated if bulls push and maintain the price above 50-day SMA. This could encourage buying, and the SOL/USDT currency pair may rally to $122.
Contrary to popular belief, if the price falls below the 20-day EMA then the bears will attempt to push the price back to the $81-$77 strong support zone. A break below the zone will signal the end of the bearish setup and the resumption or the downtrend.
Related: Internet Computer makes 50% of its move in ‘falling wedge breakout territory’
Avalanche (AVAX), which has been above the descending channel over the past few days, but the bulls haven’t been able to re-establish the up-move and push the price above $93. This means that sellers are selling at higher levels.
Daily chart of AVAX/USDT Source: TradingView
The bears may pull the AVAX/USDT pairing to the uptrend line if the price falls below the moving averages. This will signal that the channel break was a bull trap.
If the price bounces off its current level, this will indicate that bulls will continue to buy dips. The bulls will attempt to overcome the $93 hurdle and push the pair towards the psychological level of $100. Breaking and closing above this level could signal a new uptrend.
Polkadot, (DOT), bounced off the moving Averages and closed above $19 to $20 in the overhead resistance zone on March 22. This indicates that bulls are trying to make a comeback.
Daily chart of DOT/USDT Source: TradingView
The overhead resistance at $23 could cause the DOT/USDT pair to rally. This is where bears might mount a strong defense. The pair could fall to the moving averages if the price drops below $23, and then consolidate in a range for several more days.
Bulls pushing for a price increase above $23 could lead to a rally towards $30. The pair could also slide to $16 if it falls below the moving averages.
Dogecoin (DOGE), which has hovered near the 20-day EMA ($0.12) over the past few days, indicates a fierce battle between the bears and bulls.
Daily chart of DOGE/USDT Source: TradingView
The RSI at the midpoint and the flattish 20-day EMA suggest a balance between supply/demand. If buyers can push the price higher than the 50-day SMA ($0.13), this balance could shift in their favor. This will signal a change in trend and open the way for a rally to $0.17.
However, if the price falls below the 50-day SMA or current level and the March 20 intraday high, the DOGE/USDT exchange pair could fall to $0.10.
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.