Cryptocurrency and equity markets in the United States have witnessed some profit taking this weekwhile macroeconomic data pointed to the Federal Reserve continuing to raise rates. The bitcoin (BTC) price is down more than 4% and the S&P 500 is down 2.7%registering its worst week of the year.
CME’s FedWatch tool shows a 73% probability of a 25 basis point rate hike by the Fed at the March meeting, but Following higher-than-expected inflation readings in two weeks, the likelihood of a 50 basis point rate hike has slowly started to gain momentum.
During periods of uncertainty, some currencies enter a deeper correction, while some buck the trend and continue to outperform markets.. Therefore, it is important to select the right currencies for trading.
Selected in this list are a few coins that have experienced a shallow correction or rallied sharply from support. Let’s look at your charts and determine the levels to watch out for.
BTC/USDT
The bitcoin price fell below the 20-day exponential moving average ($23,391) on February 24but the bears were unable to seize this advantage and hold the price below the important support at $22,800.
The price bounced off $22,800 on Feb 25 and the bulls are trying to push the price above the 20-day EMA.. If they do, it will indicate that the BTC/USDT pair may consolidate between $25,250 and $22,800 for a few days.
The flattening of the 20-day EMA and the RSI near the midpoint also suggest a short-term range-bound action..
On the other hand, if the price falls below $22,700, the selling could intensify and the pair could drop to the next major support at $21,480..
On the 4 hour chart, the 20-EMA has turned down and the RSI is in the negative territory. This indicates an advantage for bears. The sellers will try to protect the 20-EMA and if the price turns down from this level, the probability of a break below $22,800 increases.. If this happens, the selling could intensify and the pair could fall towards $21,480.
On the contrary, if the price breaks above the 20-EMA, it will suggest that the bulls are buying dips. This could push the pair towards the 50 SMA and keep price range bound for some time longer.
LDO/USDT
Lido DAO (LDO) failed to hold below the 20-day EMA ($2.75) during the recent correction, which is a positive sign. Another bullish sign is the formation of the pennant near the local highs.
The bulls will try to push the price above the resistance line of the pennant. If they do, the LDO/USDT pair could start the next leg up. The pair could first rally to $3.90 and then attempt a rally to $4.24.
On the contrary, if the pair pulls back from the resistance line, it will suggest that the bears are selling rallies. This could keep the price within the pennant for a while longer. The bears will have to push the price below the pennant if they want to signal a short-term trend change.
Strong rebound from pennant support line signals aggressive buying on dips. Buyers will have to overcome the resistance line hurdle to regain control. If they do, the pair could resume its uptrend.
However, the bears likely have other plans as they will try to protect the resistance line. If the price turns down from this level, the steady state may continue for some time..
A break below the pennant could attract profit taking by short-term traders. This could drag the price to $2.20 and later to $2.
USDT/EGLD
MultiversX (EGLD) has pulled back from the resistance line, but an encouraging sign is that the bulls are attempting to defend the 20-day EMA ($47)..
Both moving averages are sloping up and the RSI is above 54, indicating that the buyers have a slight edge.. The bulls will try to push the price towards the resistance line, where they are likely to meet strong opposition from the bears again.
This bullish view could be invalidated in the short term if the price turns lower and falls below the 20 day EMA.. That will indicate selling by the bears on every small rally. The EGLD/USDT pair could then drop as far as the 50-day SMA ($44) and $40 later.
The 4-hour chart shows that the price is falling inside a descending channel pattern.. The buyers made their purchases at lower levels and have brought the price to the resistance line of the channel. If this resistance gives way, the pair could rally to the 50-SMA and then try to retest the important $54 barrier.
On the contrary, if the price turns lower from the resistance line, it will suggest that the bears have not given up. That could cause a drop towards the support line of the channel..
THETA/USDT
Bulls try to stop Theta Network (THETA) pullback at the 20-day EMA ($1.15).. Both moving averages are sloping higher and the RSI is in positive territory, indicating an advantage for the bulls.
If the buyers push the price above the downtrend line, the THETA/USDT pair could rally to the overhead resistance of $1.34. This is formidable resistance, and a break above it could open the doors for a possible rally to $1.70.
On the contrary, if the price turns down and dips below the 20 day EMA, short-term bulls would rush out. That could initiate a deeper correction towards the 50-day SMA ($1.05) and then towards the psychological support at $1.
The 4-hour chart shows the formation of a symmetrical triangle pattern. Both moving averages have flattened out and the RSI is oscillating near the center, indicating a balance between supply and demand..
A break below the triangle could tip the short-term advantage in favor of the bears. The pair could first drop to $1.12 and then $1.
If the bulls want to avoid the fall, they will have to quickly push the price above the triangle.. That could start a run towards $1.27 and later towards $1.30.
KLAY/USDT
Klaytn (KLAY) is trying to break out of a base pattern. The price bounced off the 20-day EMA ($0.26) on Feb. 25, signaling solid buying on dips.
The bulls will try to break through the overhead resistance of $0.34. If they do, the KLAY/USDT pair could pick up momentum and shoot up to the psychological resistance at $0.50. This movement would indicate a possible change in trend.
If the price turns below $0.34, it will indicate that the bears are fiercely protecting the level.. This could send the pair down to the 20 day EMA. A break below this level could indicate that the pair may spend some more time in the underlying pattern.
The bulls halted the decline near the 61.8% Fibonacci retracement of $0.26 and started a rally. There is minor resistance at $0.32, but if this level is crossed, the pair could try to rally to $0.34 and $0.37 thereafter.
On the other hand, if price turns down from resistance, bears would be selling rallies. This could raise the prospects for a break below $0.26. If this happens, the pair could drop as low as $0.22.
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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