BTC is making higher daily lows and altcoins are holding on to their recent gains, suggesting a market bottom could be in place.
US stock markets and Bitcoin (BTC) have rallied sharply from their February 24 lows, while gold has pulled back from its recent highs. This indicates that investors may be buying risky assets and reducing exposure to perceived safe haven assets.
Recent reports also suggest that Russian President Vladimir Putin may send a delegation to negotiate with Ukraine, raising hopes that the conflict will end sooner than analysts expect.
Some analysts believe that the US Federal Reserve may not raise rates aggressively in March due to the geopolitical situation. Allianz chief economic adviser Mohamed El-Erian believes March’s 50 basis point rate hike is “completely off the table”.
Dr. Raullen Chai, co-founder and CEO of blockchain network IoTeX, told Cointelegraph that investors should refrain from selling their crypto in the expectation of buying back at a lower price. He warned that the market could “easily hit new all-time highs by the end of the year.”
Could the bulls take advantage of the strong bounce off lower levels or will the bears sell higher and push the price lower? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
BTC/USDT
Bitcoin formed an off-day candlestick pattern on Feb. 24. The bears pushed the price below the immediate support at $36,250, but the long tail on the daily candle indicates strong buying by the bulls at lower levels.
If the buyers push the price above the moving averages, the BTC/USDT pair could rally towards the overhead resistance at $45.821. Such a move will suggest that the bears may be losing control. The longer the price stays above the moving averages, the greater the chance that a bottom has been reached.
Conversely, if the price breaks below the moving averages, it will suggest that the sentiment remains negative and traders are selling on the rallies. Afterwards, the bears will make one more attempt to sink and sustain the pair below $36,250. If they manage to do that, the pair could drop to the strong support zone between $34.322 and $32.917.
ETH/USDT
Ether (ETH) broke below the support line of the symmetrical triangle on Feb 24, but the bears could not sustain the lower levels. The long tail of the day candle indicates strong buying at lower levels.
The ETH/USDT pair has re-entered the triangle and the bulls are trying to push the price above the moving averages. If they are successful, the pair could rally to the resistance line of the triangle. A breakout and close above this level could signal the start of a possible new uptrend.
Contrary to this assumption, if the price turns down from the moving averages, the bears will again try to push the pair below the support line of the triangle. If that happens, the pair could retest $2,300. If this support also breaks, the drop could extend to $2,159
BNB/USDT
BNB tumbled to the strong support zone of $330-$320 on Feb 24, where buyers stepped in and stopped the decline. The strong bounce pushed the price above the breakout level at $350.
The bulls are attempting to push the price to the moving averages where the bears are expected to mount a strong defense. If the price turns below the moving averages, the bears will again try to sink and sustain the BNB/USDT pair below $350 and challenge the support zone.
Alternatively, if the bulls propel the price above the 50-day SMA ($411), it will suggest that the selling pressure might be easing. The pair can then rally to the overhead resistance at $445.
XRP/USDT
Ripple (XRP) rebounded from the $0.62 support on Feb. 24, but the bulls were unable to push the price above the overhead resistance at the 50-day SMA ($0.72). This resulted in the formation of a long-legged Doji candlestick pattern.
The bulls are again trying to push the price above the moving averages. If they manage to do that, the XRP/USDT pair could rally to the downtrend line. The bulls will have to overcome this hurdle to signal a possible short-term trend change. The pair could then attempt an up move to $0.91 and then $1.
Conversely, if the price turns down from the moving averages, it will suggest that the bears continue to sell on the rallies. The bears will then resume their selling and try to push the pair into the strong support zone at $0.62-$0.55.
ADA/USDT
Cardano (ADA) continues in a strong downtrend and the price has been trading below the critical $1 level for the past few days. The long tail of the Feb. 25 candle shows that the bulls bought the dip to $0.74.
The falling moving averages and the RSI below 37 suggest that the bears are in control. If the price turns down from the current level or the overhead resistance at $1, it will suggest that the bears continue to sell on the rallies. Afterwards, the bears will try to push the pair below $0.74.
Conversely, if the price breaks above $0.90, the pair could rally to the $1 breakout level. This is an important level for the bears to defend because a break above it will indicate that the markets have rejected the lower levels. The pair could then challenge the resistance line of the descending channel.
SOL/USDT
Solana (SOL) rebounded sharply from the intraday low on Feb 24 and closed above the breakout level at $81. The long tail of the day candle shows strong buying at lower levels.
The bulls will have to break through the general hurdle at the 50-day SMA ($110) to signal that the selling pressure might be easing. Thereafter, the SOL/USDT pair could rally to the overhead resistance at $122.
A breakout and close above this level will complete a double bottom pattern, which has a pattern objective of $163.
Alternatively, if the price turns down from the current level, the bears will challenge the strong support at $81 and try to resume the downtrend. Selling pressure could pick up on a break and close below $75.
AVAX/USDT
Avalanche (AVAX) tried to break above the moving averages on Feb 23, but the long wick on the day’s candle indicates strong selling at higher levels. The bears pushed the price up to $64 on Feb 24, but the bulls bought this dip. This suggests that the bears are selling on the upside while the bulls are buying on the downside.
Both moving averages are sloping down and the RSI is just below the midpoint, which indicates a minor advantage for the bears. If the price remains below the moving averages, the AVAX/USDT pair could retest $64. A breakout and close below this level could open the doors for a potential drop to $51.
Conversely, if the bulls push the price above the moving averages, the pair could rally to the downtrend line of the channel. A breakout and close above this level will signal a possible trend reversal.
MOON/USDT
Terra’s LUNA token formed an off-day candlestick pattern on Feb. 24. Although the bears pushed the price below the 20-day EMA ($56), they were unable to sustain the lower levels.
The LUNA/USDT pair rebounded sharply from the lows and closed above the 50-day SMA ($61). This indicates aggressive buying on dips. The 20-day EMA has started to turn up and the RSI is in the positive territory, which indicates that the bulls have the upper hand.
There is a minor resistance at $70. If the bulls overcome this hurdle, the pair could rally to the upper zone at $85-$87. Conversely, if the price turns below $70, the pair could drop to the moving averages .
DOGE/USDT
Dogecoin (DOGE) rebounded from the strong support at $0.10 on Feb. 24 and closed above the breakout level at $0.12. However, the bulls have not been able to maintain the buying momentum, which indicates a lack of demand at higher levels.
The bears will again try to push the price below $0.12 and challenge the psychological support at $0.10. A breakout and close below this level will be very negative and the DOGE/USDT pair could drop to $0.06.
Alternatively, if the price turns up from the current level, the buyers will try to push the pair above the moving averages. If they do that, the pair could rally to the strong overhead resistance at $0.17. A breakout and close above this level will indicate that the bears may be losing control.
DOT/USDT
Polkadot (DOT) broke down below the strong support at $15.80 on Feb 24, but the bears could not sustain the lower levels as seen by the long tail of the daily candlestick. This indicates strong buying at lower levels.
The downsloping moving averages and the RSI in the negative territory indicate that the bears have a slight edge. The bears are likely to mount a strong defense in the upper zone between the 20-day EMA ($18.15) and the downtrend line.
If the price turns down from this zone, the bears will make one more attempt to pull and hold the DOT/USDT pair below the strong support at $15.80. If they are successful, the pair could drop to $13.35.
This negative view will be invalidated if the price turns up and sustains above the 50-day SMA ($20.71). The pair could then rally to the overhead resistance at $23.19.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
Market data is provided by the exchange HitBTC .