Bitcoin (BTC) is on track to close the week with gains of over 23%. The banking crisis in the United States and Europe seems to have boosted bitcoin purchases, indicating that the leading cryptocurrency is acting as a safe haven asset in the short term.
All eyes are on the Federal Reserve meeting on March 21-22. Bank failures in the US have raised hopes that the Fed will not raise rates at the meeting. The CME FedWatch tool shows a 38% probability of a pause and a 62% probability of a 25 basis point rate hike on March 22.
Analysts are divided on the consequences of the current crisis on the economy. Former Coinbase CTO Balaji Srinivasan believes the United States will enter a period of hyperinflation, while Twitter user pseudonym James Medlock believes otherwise. Srinivasan plans to make a million-dollar bet with Medlock and one other person that the price of bitcoin will hit $1 million on June 17.
Although anything is possible in the cryptocurrency markets, traders should be prudent in their trades and not get carried away by lofty goals.
Let’s study the bitcoin and altcoin charts which are showing signs of resuming bullish movement after a minor correction.
bitcoin price analysis
Bitcoin broke out of the $25,250 resistance on March 17, completing a bullish head and shoulders pattern (H&Sfor its acronym in English) reverse.
Usually, a breakout of a major setup retests the breakout level, but in some cases, the rally continues unabated.
The rise of the 20-day exponential moving average ($24,088) and the relative strength index (RSI) into overbought territory indicate advantage for buyers. If the price breaks above $28,000, the rally could gain momentum and reach $30,000 and then $32,000. The bears are likely to make a big sell at this level.
Another possibility is that the price drops from the current level but bounces around $25,250.. This would also keep the uptrend intact.
The positive view will be invalidated in the short term if the price falls below the moving averages. This move will suggest that the break above $25,250 may have been a bull trap. That could open the doors for a potential drop to the psychologically critical $20,000 level.
The 4 hour chart shows that BTC/USDT is facing profit taking near $27,750, but a positive sign is that the pullback has been shallow. The buyers will try to push the price above $28,000 and resume the uptrend. The pair could reach $30,000.
On the other hand, if the pair turns back and falls below the 20-EMA, investors would rush to exit. This could take the pair to the $25,250 support zone, where the bulls and the bears could fight a tough battle.
Ether Price Analysis
The bulls conquered the $1,800 resistance on March 18 but could not hold the higher levels. This shows that the bears are protecting the $1,800 level in Ether (ETH) with vigor.
Critical support to watch on the downside is the area between $1,680 and the 20-day EMA ($1,646).. If the price bounces from this zone, it is a sign that sentiment has turned positive and traders are buying on dips.
The buyers will again try to resume the uptrend and push the price towards the next target at $2,000.. This level may be a major hurdle for the bulls.
On the contrary, if the price turns down and falls below the moving averages, it will suggest that the bulls are losing control. The ETH/USDT pair could drop as low as $1,461.
The 4-hour chart shows that the pair bounced off the support at $1,743. This suggests that Bulls are buying on shallow dips and are not waiting for a deeper correction to enter. Buyers will try to break above $1,841. If this level is broken, the pair could approach $2,000.
On the contrary, if the pair falls below $1,743, investors could take profit. The pair could slide towards the next major support at $1,680.
BNB Price Analysis
BNB (BNB) broke above $338 on March 18, invalidating the bearish head and shoulders pattern. Typically, when a bearish pattern fails, it attracts buying from the bulls and short covering from the bears.
The onus is on the bulls to hold the price above the immediate support of $318. If successful, the BNB/USDT pair could rally as high as $360 first, and rush towards $400 from there. The upward slope of the 20-day EMA ($309) and the RSI near the overbought zone indicate that the path of least resistance is to the upside..
If the bears want to prevail, they will have to push the price back below the moving averages.s. It will not be an easy task, but if they succeed, the pair could drop as low as $280.
The 4 hour chart shows that bulls are buying dips towards the 20-EMA. The bears tried to stop the rally at $338, but the bulls have broken through this resistance. Buyers will try to push the pair to $346. If this level gives way, the pair could continue its uptrend.
On the other hand, if the pair pulls back and breaks below the 20 EMA, the bulls would be taking profits. The pair could fall as low as $318, where buyers could step in to stem the decline.
Stacks Price Analysis
Stacks (STX) went from $0.52 on March 10 to $1.29 on March 18, a major rally in a short time. This suggests aggressive buying by the bulls.
The STX/USDT pair is recording gains near $1.29but a positive sign is that the bulls have not given much ground to the bears. This suggests that they are being bought during the minor dips. Normally, in a strong uptrend, corrections last from one to three days.
If the price rises above $1.29, the pair could resume its uptrend. The next stop to the upside will probably be $1.55, and then $1.80.
The first sign of weakness to the downside will be a breakout and close below $1.r, which could clear the way for a drop to the 20-day EMA ($0.84).
The pair has corrected to the 20-EMA. This is an important level that the bulls need to defend if they want to resume the move to the upside. If the price bounces off the 20-EMA, the pair could retest the overhead resistance at $1.29. If the bulls break out of this barrier, the next leg of the uptrend could begin.
Conversely, if the bears push the pair below the 20-EMA, the pair could drop as far as $1 and then down to the $50 SMA.. A deeper correction could delay the resumption of the uptrend and keep the pair range-bound for a few days.
Immutable Price Analysis
Immutable (IMX) soared above the overhead resistance of $1.30 on March 17, completing the inverse H&S (head and shoulders) formation. This suggests the start of a possible new uptrend.
Meanwhile, the price can retest the breakout level of $1.30. If the price bounces from this level strongly, it will suggest that the bulls have turned the level into support.. The buyers will try to break above $1.59 and resume the uptrend. The IMX/USDT pair could rally to $1.85 and later to $2. The pattern target of the reversal setup is $2.23.
This positive view could be invalidated in the short term if the price slides below the moving averages.. This move would suggest that the break above $1.30 could have been a bull trap. The pair could drop as low as $0.80.
The pair is experiencing a slight correction, which is finding support at the 20-EMA. The buyers are trying to clear the trend zone. The buyers are trying to break through the $1.59 barrier, but the bears are not budging. If the price breaks below the 20-EMA, the pullback could reach to $1.30.
Another possibility is that the price bounces off the 20-EMA. This would indicate strong demand at the lower levels and raise the prospects of breaking above $1.59. If this happens, the pair could resume its uptrend..
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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