Bitcoin (BTC) and most of the major altcoins are attempting to start the new week on a positive note by bouncing off their respective support levels.
Goldman Sachs became one of the first major US banks to complete an over-the-counter “cash-settled crypto options swap” with Michael Novogratz’s Galaxy Digital trading unit. This could encourage other major banks to consider offering OTC transactions for cryptocurrencies.
It is not just selected nations that are showing growth in cryptocurrency adoption. A report from cryptocurrency exchange KuCoin shows that cryptocurrency transactions in Africa have soared by roughly 2,670% in 2022. Bitcoin Senegal founder Nourou believes Africa could continue its 1,000+ percent growth rates for years to come.
Analyst Willy Woo speculated that Bitcoin’s four-year price cycle, based on the block subsidy halving, it may not work as a predictive tool going forward as price action is likely to be determined by supply and demand.
Could Bitcoin and altcoins break through their general resistance levels? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
BTC/USDT
Bitcoin is facing stiff resistance at $42.594, which indicates that the bears are continuing to sell higher. The bears try to push the price below the moving averages while the bulls try to keep the price above it.
Both moving averages have flattened out and the RSI is close to the midpoint, which suggests a balance between supply and demand. If the price breaks below the moving averages, the BTC/USDT pair could drop to $37,000. Such a move will suggest that the pair could spend more time range bound from $42,594 to $37,000.
Conversely, if the price bounces sharply off the moving averages, it will suggest that sentiment has turned positive and traders are buying on minor dips. That may improve the prospects for a break above $42.594. If the price sustains above this resistance, the pair could rally to the upper zone between $45,400 and the resistance line of the ascending channel.
ETH/USDT
Ether (ETH) turned down from the overhead resistance at $3,000 on Mar 19, but the bears were unable to break the price below the moving averages on Mar 20. This suggests that the bulls are buying on minor dips.
The bulls will try to push the price above $3,000 and challenge the resistance line of the symmetrical triangle. This is an important level to watch out for because a breakout and close above it will signal a possible trend reversal. The ETH/USDT pair could rally to $3,500.
Alternatively, if the price turns down from $3,000 or the resistance line of the triangle and breaks below the moving averages, it will suggest that the pair may extend its stay inside the triangle for a few more days.
BNB/USDT
Binance Coin (BNB) broke out and closed above the 50-day SMA ($390) on March 17, but the bulls were unable to capitalize on this advantage. The long wick on the March 19 candle indicates that it is selling at higher levels.
The BNB/USDT pair turned down and fell to the 20-day exponential moving average ($386) on March 20. A minor positive is that the bulls have not allowed the price to drop below this level. This indicates that the bulls are buying the dips.
If the price turns up and breaks above $407, the up move can continue and the pair could rally to $425. This level can act as a barrier, but if it is crossed, the next stop could be $445.
Conversely, if the price turns down and breaks below the 20-day EMA, it will suggest a lack of demand at higher levels. Afterwards, the pair could slide towards $350.
XRP/USDT
XRP bounced off the 20-day EMA ($0.77) on March 18 and reached the downtrend line on March 19. The bears again defended this level but were unable to break the price below the 20-day EMA. This suggests strong buying on dips.
Both moving averages have started to rise and the RSI is in the positive territory, which indicates that the path of least resistance is to the upside.
If the bulls push and hold the price above the downtrend line, buying could rise further and the XRP/USDT pair could rally to $0.91. If this level is also conquered, the next stop could be the psychological barrier at $1.
The bears will have to pull and hold the price below the 50-day SMA ($0.75) to gain an advantage.
MOON/USDT
The LUNAde Terra token bounced off the 20-day EMA ($86) on March 18, indicating that the sentiment remains positive and traders are buying the dips.
The buyers have pushed the price to the tough overhead resistance at $96, where the bears are mounting a strong defense.
If the bulls overcome this hurdle, the LUNA/USDT pair could retrace to the all-time high of $105. The bulls will have to push and hold the price above this level to signal the resumption of the uptrend. The rise of the 20-day EMA and the RSI in positive territory indicate an upside for the buyers.
Contrary to this assumption, if the price turns down and falls below the 20-day EMA, several short-term traders can close their position. The pair could then drop to the strong support at $70.
SOL/USDT
Solana (SOL) attempted to break above the downtrend line on March 19, but the bears had other plans. They defended the level and pulled the price down to the 20-day EMA ($87) on March 20.
The buyers have successfully defended the 20-day EMA and will once again try to push the price above the downtrend line.
If they manage to do that, the descending triangle pattern will be invalidated. The failure of a negative setup is a positive sign as it traps several bears who may have sold before a breakout. The SOL/USDT pair could then attempt a rally to $106 and then $120.
Conversely, if the price turns down and breaks below the 20-day EMA, it will suggest a strong sell at higher levels. Afterwards, the pair could gradually decline to the $81 support.
ADA/USDT
Cardano (ADA) rallied above the 20-day EMA ($0.86) on March 19, and the bulls stopped the bears’ attempts to push the price back below the March 20 level. This suggests that the buyers are trying to start a relief rally.
The bulls will now try to push and hold the price above the overhead resistance at $1. If successful, it will suggest a possible trend reversal. The ADA/USDT pair could rally to the next overhead resistance at $1.26.
Alternatively, If the price turns down from the current level or overhead resistance and breaks below the 20-day EMA, it will suggest that the pair may remain range bound between $1 and $0.74 for a few more days.
AVAX/USDT
Avalanche (AVAX) closed above the descending channel on March 18 and the bulls successfully defended the breakout level on March 20 and 21.
The 20-day EMA ($78) turned up and the RSI jumped into the positive territory, indicating an upside for the buyers.
If the bulls propel and sustain the price above $93, the AVAX/USDT pair could rally to the psychological $100 level. The bears may try to stop the rally at this level, but if the bulls do not give up much ground, the probability of a break above it increases.
This bullish view will be nullified if the price turns down from the current level and breaks below the moving averages.
DOT/USDT
Polkadot (DOT) broke out and closed above the overhead resistance at $19 on March 19, but the bulls were unable to take advantage of this advantage. The bears took advantage of this opportunity and dropped the price below $19 on March 20.
A minor positive is that the bulls have not allowed the price to drop below the moving averages. The flat moving averages and the RSI just above the midpoint suggest that the bears may be losing control.
If the price turns up from the current level, the bulls will try to break the overhead hurdle at $20. If they manage to do that, The DOT/USDT pair could rally to $23, where the bears can once again pose a strong challenge.
This positive view will be invalidated in the short term if the price breaks down and sustains below the 20-day EMA ($18). That could open the doors to a potential drop to $16.
DOGE/USDT
Dogecoin (DOGE) broke out and closed above the 20-day EMA ($0.12) on March 19, but the bulls could not sustain the higher levels. The bears pushed the price below the 20-day EMA on March 20.
The 20-day EMA is flattening out and the RSI is just below the midpoint, which indicates that the selling pressure may be reducing. If the buyers push and sustain the price above the 20-day EMA, the DOGE/USDT pair could rally to the 50-day SMA ($0.13). The bulls will have to overcome this hurdle to open the doors for a potential rally to $0.17.
Alternatively, if the price turns down from the current level and closes below the intraday low formed on Mar 20, the pair could drop to the strong support of $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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