Bitcoin (BTC) has been holding above the $25,000 level for the past few days, raising the likelihood that the bear market is over. Generally, in the initial stages of a new bullish phase, several analysts remain in a state of disbelief and wait for the resumption of the downtrend.
Another group of traders continues to wait for the decline to buy at lower levels, but the price is not compelling. Eventually, the fence-sitting traders throw in the towel and buy, and that is when the correction is likely to occur. Such a pullback shakes out weak hands and transfers the asset into the hands of investors with conviction.
When a new trend is established, certain events tend to cause a knee-jerk reaction, but the trend is unlikely to reverse. In the case of Bitcoin too, a dip is possible to catch aggressive bears, but there is a low chance that the bear market will resume.
What are the important levels to watch for on the upside and downside in Bitcoin and altcoins? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis
After a two-day consolidation, Bitcoin broke above the overhead resistance of $28,500 on March 22. This suggests that the bulls have asserted their dominance.
The up-sloping 20-day exponential moving average ($25,180) and the RSI in the overbought zone indicate that the path of least resistance is to the upside. A break above $28,500 will clear the way for a potential rally to the $30,000-$32,500 resistance zone.
In the event of a correction, the first support to watch on the downside is $25,250. If the price bounces off this level, it will suggest that the neckline of the head and shoulders (H&S) pattern has become support.
The problem will arise if the $25,250 level is broken because that can trigger the stops of several bulls. The BTC/USDT pair could plummet to the 200-day simple moving average ($20,020).
Ether Price Analysis
Ether (ETH)’s rebound from $1,717 suggests that the bulls are buying the minor dips and are not waiting for a deeper correction to buy. However, the buyers failed to clear the $1,842 hurdle, indicating that the bears are protecting this level with all their might.
Typically, a tight consolidation near a local top suggests that the bulls are not closing their positions in a hurry, as they anticipate another leg of bullishness. The rising 20-day EMA ($1,679) and the RSI in the positive territory indicate that the bulls have a slight advantage.
If the buyers push the price above $1,842, the ETH/USDT pair can jump to $2,000 and then attempt a rally to $2,200. This bullish view will be invalidated in the short term if the price turns down and breaks below the 20 day EMA. The pair can then drop to $1,600.
BNB Price Analysis
The fact that the bulls failed to push BNB (BNB) above $346 in the past few days shows that the bears are fiercely protecting the level. That may have resulted in short-term bulls booking profit, which has pushed the price towards the 20-day EMA ($314).
If the price bounces off the 20 day EMA, it will suggest that sentiment has turned positive and traders view dips as a buying opportunity. Then the bulls will make one more attempt to clear the hurdle at $346. If successful, the BNB/USDT pair could skyrocket towards $400.
On the other hand, if the price turns below the 20-day EMA, it will suggest the start of a deeper correction towards the 200-day SMA ($288). The pair can then range from $280 to $346 for a few days.
XRP Price Analysis
XRP (XRP) soared above the 200-day SMA ($0.40) and the stiff overhead resistance of $0.43 on March 21, signaling a buying stampede.
After the strong rally, traders seem to be booking profits close to $0.50. That has resulted in a pullback to the breakout level of $0.43. If the bulls turn this level to support, the XRP/USDT pair may try to rally above $0.50 again. If that happens, the pair could skyrocket to $0.56. A break and close above this level will signal the start of a possible new uptrend.
Conversely, if the price continues lower and breaks below the $0.43 support, it will suggest that traders are rushing out. That could trap the aggressive bulls and sink the pair to the 200-day SMA.
Cardano Price Analysis
Cardano (ADA) rallied above the moving averages on March 21, indicating that the lower levels are attracting buyers.
However, the bears have not given up yet and are trying to stop the rally at $0.39 as seen from the long wick on the March 21 and 22 candles. The onus is on the bulls to turn the moving averages into support. If they can do that, the ADA/USDT pair could rally to the neckline of the developing H&S pattern.
Conversely, if the price turns down and slides below the moving averages, it will indicate that the higher levels continue to attract sellers. The pair could then drop to $0.30.
Dogecoin Price Analysis
Dogecoin (DOGE) has been trading between $0.07 and the 200-day SMA ($0.08) for the past few days. This suggests indecision between the bulls and the bears about the next directional move.
The flat moving averages and the RSI near the midpoint suggest that the range-bound action may continue for longer. The first sign of strength will be a break and close above the 200-day SMA. That could open the doors for a possible rally to $0.09 and then $0.10.
If the bears want to gain an advantage, they will have to sink the price below the support at $0.07. The DOGE/USDT pair can then drop to $0.06 and subsequently to the crucial support at $0.05.
Polygon Price Analysis
Polygon (MATIC) has been oscillating above and below the 20-day EMA ($1.15) for the past few days, indicating a lack of direction. Bulls buy dips while bears sell rallies.
The flat 20-day EMA ($1.15) and the RSI just below the midpoint do not give a clear advantage to either the bulls or the bears. This suggests that the MATIC/USDT pair may consolidate between $1.05 and $1.30 for a while.
The longer price consolidates in the range, the stronger the eventual breakout will be. If the bulls force the price above $1.30, the pair can accelerate to $1.57 and then $1.75. Alternatively, if the price dips below the 200-day SMA ($0.96), it will suggest that the bears are back in command. The pair could drop to $0.69.
Solana Price Analysis
The buyers tried to push Solana (SOL) above the downtrend line on March 20, but the bears held their ground. A minor silver lining in favor of the bulls is that they did not allow the price to dip below the 20-day EMA ($21.18).
The RSI is in positive territory, indicating a slight advantage for buyers. If the bulls push the price above the downtrend line, it will indicate a potential trend reversal. The SOL/USDT pair could rally to $27.12 first, where the bears can mount strong defense again. If the buyers clear this hurdle, the pair could pick up momentum and rally to $39.
Conversely, if the price turns down from the current level and breaks below the 20 day EMA, it will suggest that the bears are trying to gain the upper hand. The pair can then slide to $15.28.
Polkadot Price Analysis
Polkadot (DOT) bounced off the 200-day SMA ($6) on March 21, indicating that the bulls are trying to turn the level into support.
The flat 20-day EMA ($6.18) and the RSI near the midpoint signal a balance between supply and demand. This balance will tip in favor of the buyers if they push the price above the 61.8% Fibonacci retracement level of $6.85. The DOT/USDT pair could rally towards the neckline of the developing H&S pattern.
The bears likely have other plans. They will try to protect the overhead resistance and sink the price below the 200-day SMA. If they do, the pair can drop back to $5.15.
Shiba Inu Price Analysis
Shiba Inu (SHIB) is compressing between the downtrend line of the descending channel pattern and the psychological support at $0.000010.
This tight range trading is unlikely to continue for long, and a breakout looks imminent. The price has been holding on to the downtrend line, which suggests that the SHIB/USDT pair is likely to rally above the channel. There is minor resistance at $0.000012 but if this level is crossed, the pair can rally towards $0.000016.
This positive view will be nullified in the short term if the price turns down and breaks below the $0.000010 support. That could send the pair down to $0.000008.
The views, thoughts and opinions expressed herein are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, readers should do their own research when making a decision.