Bitcoin (BTC) and select altcoins broke through their immediate resistance levels but are struggling to hold higher levels, signaling that the bears are not ready to give up.
There is speculation that the spike in Bitcoin price on March 22 may have been caused by reports that Terra had sent 125 million USDT to Binance on March 21.
This could be the start of the proposed $3 billion worth of Bitcoin that the company plans to buy. Terra made another identical transaction on March 23which could boost short-term sentiment.
While this news could provide a short-term spike, it is unlikely to upset the main trend. Bitcoin remains strongly correlated to the S&P 500, which rallied considerably between March 15 and 22. Cryptocurrency traders are likely to take note of the performance of the S&P 500 in the coming days.
Could the bulls get over the overall hurdle and start an up move in Bitcoin and select altcoins?
Let’s analyze the charts of the top 10 cryptocurrencies to find out.
BTC/USDT
Bitcoin broke through the immediate resistance at $42,594 on March 22, but the bulls were unable to sustain the higher levels. This suggests that the bears continue to defend this level aggressively.
A minor positive is that the bulls did not give up much ground against the overhead resistance on March 23. This suggests that traders are not closing their position near the resistance as they anticipate the move higher to continue.
If the buyers push and sustain the price above $42,594, the BTC/USDT pair could pick up momentum and rally to $45,400, where the bears can once again mount a strong defense.
This positive view will be invalidated if the price turns down and breaks below the moving averages. If that happens, the pair could extend its stay inside the $37,000 to $42,594 range for a few more days.
ETH/USDT
Ether (ETH) broke above the psychological level at $3,000 and reached near the resistance line of the symmetrical triangle on March 22. The long wick on the candle indicates that the bears are defending the resistance line.
The bears will now try to push the price down to the moving averages. If the price bounces off this support, it will increase the chance of a break above the triangle.. If that happens, the ETH/USDT pair could start a new move higher. The pair could first rally to $3,500 and then move towards the pattern target of $3,907.
This bullish view will be nullified in the short term if the price falls below the moving averages. Such a move will indicate that the pair can spend more time inside the triangle.
BNB/USDT
BNB bounced off the 20-day EMA ($389) on March 21, indicating that it is buying dips. The bulls pushed the price above the overhead resistance at $407 on Mar 22 but failed to sustain the higher levels.
The 20-day EMA has gradually started to turn up and the RSI is in the positive territory, which indicates an upside for the buyers. The bulls will try to push and hold the price above the $407–$410 resistance zone. If they manage to do that, the BNB/USDT pair might attempt a rally to $445.
On the contrary, if the price turns down from the current level, the pair could drop to the moving averages. This is an important support to watch out for because if the bears pull the price below the moving averages, the pair could drop to $350.
On the other hand, if the price bounces off the moving averages, it will suggest that the bulls are accumulating at lower levels. The buyers will again try to push the pair to $445.
XRP/USDT
Ripple (XRP) broke out and closed above the downtrend line on Mar 21, but bulls find it difficult to continue the upside move. This indicates that demand is reduced at higher levels.
The price has turned down and the bears are attempting to pull the XRP/USDT pair below the downtrend line. If they manage to do that, the pair could drop to the moving averages.
A strong rebound from the moving averages will suggest that traders continue to buy lower levels. The bulls will once again try to push the price back towards $0.91.
Conversely, if the price breaks below the 50-day SMA ($0.76), it will suggest that the break above the downtrend line may have been a bull trap. The pair could then drop to $0.68.
MOON/USDT
Terra’s LUNA token broke above the overhead resistance at $96 on March 21, but the bulls could not sustain the higher levels. This suggests that the bears are defending this level aggressively.
However, a positive sign is that the bulls have not given up much ground in the face of resistance. This indicates that traders are not closing their positions in a hurry as they anticipate a move higher.
If the price breaks out and closes above $96, the LUNA/USDT pair could rally to the all-time high of $105. A breakout and close above this level could signal a resumption of the uptrend.
This positive view will be invalidated in the short term if the price turns down and breaks below the 20-day EMA ($88). The pair could then decline to $82 and then $75.
ADA/USDT
Cardano (ADA) broke out of the 50-day SMA ($0.94) on March 22 and hit the overhead resistance at $1. Strong buying on March 23 has pushed the price above overhead resistance, indicating that the downtrend may be ending.
If the bulls sustain the price above $1, the ADA/USDT pair could pick up further momentum. The pair could rally to $1.26. The bears can pose a strong challenge at this level, but if the bulls break through this resistance, the pair could extend its rally to $1.60.
Contrary to this assumption, If the price turns down and slides below $1, it will suggest that the bears continue to sell aggressively higher. Afterwards, the pair could drop to the 20-day EMA ($0.89), which is an important level to watch out for.
A strong bounce off this level could suggest that the bulls are piling on the dips, while a break below the 20-day EMA will indicate that the break above $1 may have been a bull trap.
SOL/USDT
Solana (SOL) has been sandwiched between the moving averages for the past few days. The bears are selling near the 50-day SMA ($93), while the bulls are buying at the 20-day EMA ($88).
This narrow range trading is unlikely to continue for long.. If the bulls push and sustain the price above the 50-day SMA, the descending triangle pattern will be invalidated. That could attract buying and the SOL/USDT pair can rally to the overhead resistance at $122.
Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, the bears will try to drive the price to the strong support zone of $81–$77. A break below this zone will complete the bearish setup, signaling a resumption of the downtrend.
AVAX/USDT
Avalanche (AVAX) has been holding above the descending channel for the past few days, but the bulls have failed to resume the up move pushing the price above $93. This indicates selling higher.
If the price breaks below the moving averages, the bears could push the AVAX/USDT pair to the uptrend line. Such a move will indicate that the breakout above the channel may have been a bull trap.
Conversely, if the price bounces off the current level, it will suggest that the bulls continue to buy dips. The bulls will once again try to break above the $93 hurdle and push the pair towards the psychological $100 level. A breakout and close above this level could signal the start of a new uptrend.
DOT/USDT
Polkadot (DOT) bounced off the moving averages and closed above the overhead resistance zone at $19-$20 on March 22. This suggests that the bulls are trying to make a comeback.
The DOT/USDT pair could now rally to the overhead resistance at $23, where the bears can mount a strong defense. If the price breaks below $23, the pair could drop to the moving averages and consolidate in a range for a few more days.
If the bulls push and sustain the price above $23, the pair could pick up momentum and rally towards $30.. Alternatively, if the price turns down and breaks below the moving averages, the pair could slide down to the strong support at $16.
DOGE/USDT
Dogecoin (DOGE) has been hovering near the 20-day EMA ($0.12) for the past few days, indicating a tough fight between the bulls and the bears.
The flat 20-day EMA and the RSI near the midpoint suggest a balance between supply and demand. This balance could tip in favor of the buyers if they can propel and sustain the price above the 50-day SMA ($0.13). Such a move will signal a likely change in trend and pave the way for a potential rally to $0.17.
Conversely, If the price turns down from the current level or the 50-day SMA and drops below the intraday low of Mar 20, the DOGE/USDT pair could drop to the strong support at $0.10.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should do your own research when making a decision.
Market data is provided by the HitBTC exchange.
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