Bitcoin and select altcoins are close to breaking out of their general resistance levels, indicating that the bulls remain in control of the crypto market.
Bitcoin (BTC) is up about 71% in the first quarter of 2023, which is the first positive quarter after four consecutive quarters of negative returns in 2023, according to data from Coinglass. This shows that sentiment has turned positive and the bulls are trying to bottom Bitcoin.
When the bottom current is bullish, negative news leads to shallow corrections. That’s what happened after the United States Commodity Futures Trading Commission filed a lawsuit against Binance and its CEO, Changpeng Zhao, for trading violations. This news dragged the markets slightly lower, but did not start a strong move lower.
Another thing that happens in a bullish environment is that cryptocurrencies go up without any specific catalyst. That happened on March 29 when Bitcoin and several major altcoins came out in force.
Could Bitcoin and select altcoins start the next leg of the uptrend and where is the recovery likely to face resistance? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis
In an uptrend, traders typically buy pullbacks at the 20-day exponential moving average ($26.371). The long tails on the March 27 and 28 candles show just that.
The rise of the 20 day EMA and the RSI above 63 indicate that the bulls are in control. The buyers will try to consolidate their dominance by pushing the price above $28.868.
If they succeed, BTC/USDT is likely to rally to $30,000 and then continue the rally to critical resistance at $32,500. The bears will try to stop the bullish move in this zone, as a rally above $32,500 could clear the way for a strong rally to $40,000.
Bassists are running out of time. They will have to pull the price below the 20 day EMA first, and then retest the breakout level of $25,250. If this level also fails, the pair could plummet to the 200-day SMA ($20,281).
Ether Price Analysis
Ether (ETH) bounced off the $1,680 support on March 28, indicating that the lower levels are attracting buyers. This keeps the price stuck between $1,680 and $1,857.
The uptrending 20-day EMA ($1,720) and RSI near 58 suggest that the bulls have the upper hand. If the buyers break above $1,857, the ETH/USDT pair could rally as high as $2,000 and subsequently reach $2,200.
On the contrary, If the sellers want to impede this move higher, they will have to quickly pull the price below the $1,680 support. If this happens, the pair could drop as low as $1,600 and subsequently plummet to $1,461.
BNB Price Analysis
BNB (BNB) plunged below the 20-day EMA ($316) on March 26, but the bears were unable to maintain the selling pressure. The bulls bought the dip and pushed the price above the 20-day EMA on March 29.
Next, buyers will try to clear the downtrend line hurdle. If successful, the BNB/USDT pair could rally to the $338-$346 resistance zone. The bears are expected to defend this zone with all their might, as if it gives way, the pair could skyrocket towards the lows. $400.
On the contrary, If the pair reverses direction from the current level or the downtrend line, this will suggest that sentiment remains negative and the bears are selling rallies. In that case, the pair could plunge to the 200-day SMA ($290).
XRP Price Analysis
XRP (XRP) picked up momentum on March 27 and broke above the immediate resistance zone of $0.49 to $0.51 on March 28.
The bulls continued their buying streak on March 29 and sent the XRP/USDT pair flying above the crucial resistance of $0.56. If the bulls sustain the price above $0.56, it will signal the start of a new uptrend. The pair can rally to $0.65 and then $0.80.
The long wick of the March 29 candle shows that the bears are selling the rally above $0.56. If the pair falls below $0.49, this would indicate that the current breakout has been a bull trap. The pair could drop to $0.43.
Cardano Price Analysis
Cardano (ADA) broke below the 20-day EMA ($0.35) on March 27, but it turned out to be a bear trap. The price rose and shot up above the moving averages on March 28.
The bulls have breached the immediate resistance at $0.39, clearing the way for a possible rally towards the neckline of the inverse head and shoulders (H&S) pattern. If the bulls maintain momentum and push the price above the neckline, the bullish setup will be completed. That can start a fresh move up that has a pattern target of $0.60.
On the downside, a break and close below $0.33 will be a warning sign that the bears are back in the game. That can sink the ADA/USDT pair to the vital support at $0.30.
Dogecoin Price Analysis
Dogecoin (DOGE) remains stuck between the 200-day SMA ($0.08) and $0.07. This consolidation could act as a launch pad for the next directional move.
A break and close above the 200-day SMA will be the first sign that the bulls have absorbed the selling. This could attract further buying and catapult the price into the $0.10-0.11 resistance zone.
Another possibility is that the price turns down from the 200-day SMA and falls below the $0.07 support. If this happens, the bears will outweigh the bulls. The DOGE/USDT pair could then drop as low as $0.06.
Polygon Price Analysis
Polygon (MATIC) bounced from the strong support of $1.05 on March 28, indicating that the bulls are fiercely protecting this level.
The bulls extended the rally on March 29 by pushing the price above the 20-day EMA ($1.12). If the buyers hold the breakout, it will clear the way for a possible rally towards the $1.25-$1.30 resistance zone.
On the contrary, if the price turns down and breaks below the $1.05 support, the bears will be selling on relief rallies. Then, the MATIC/USDT pair could slide towards the 200-day SMA ($0.97). This is important support to watch as if it is broken, the next stop could be $0.69.
Solana Price Analysis
Solana (SOL) has been trading between the downtrend line and the horizontal support of $18.70 for the past few days.
The bulls have been buying the dips to $18.70 but have failed to push the price above the downtrend line. This indicates that the bears are active at higher levels. This state of uncertainty is unlikely to last for long.
If the buyers manage to force the pair above the downtrend line, this will suggest a possible trend reversal. The SOL/USDT pair could rally to $27.12 first and then attempt a rally to $39. Conversely, a break below $18.70 could stretch the decline to $15.28.
Polkadot Price Analysis
Polkadot (DOT) closed below the 200-day SMA ($5.95) on March 27, but the bears were unable to take advantage and sink the price below $5.70.
The bulls bought at lower levels and pushed the price back above the 200-day SMA on March 28. The buyers further reinforced their strength by pushing the pair above the 20-day EMA ($6.11). The DOT/USDT pair could reach $6.70. This is major short-term resistance that the bulls need to overcome.
If they do, the pair could attempt a rally to the neck of the inverse H&S pattern. This positive view will be negated if the price breaks below the $5.70 to $5.15 support zone.
Litecoin Price Analysis
Litecoin (LTC) fell below the 20-day EMA ($87) on March 28, but the long tail of the candle shows solid buying at the lower levels.
The bulls continued their buying on March 29 and are trying to push the price above the immediate resistance of $96. If they manage to do that, The LTC/USDT pair could rally to the strong resistance above $106. The rise of the 20-day EMA and the RSI near 55 indicate a bit of an advantage for buyers.
If the bears want to prevail, they will need to take the pair below the uptrend line. If this happens, the pair could drop to the strong support of $75.
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