Bitcoin and a few other cryptocurrencies have broken through their immediate resistance levels, signalling the beginning of a relief rally.
Bitcoin (BTC) is in a see-saw fight at $40,000, with both bulls and bears vying for the upper hand. The markets may continue volatile as they anticipate the United States Federal Reserve’s policy announcement on March 16.
According to analyst Willy Woo, Bitcoin may suffer a capitulation event based on a cost basis, a parameter that signals the shift of Bitcoin from novice to experienced traders. Such precipitous drops are frequently indicative of the emergence of market bottoms.
Glassnode, on the other hand, feels that a surrender was averted since the sell-offs were absorbed by a very healthy market. Despite the fact that 82 percent of short-term holders’ coins are in the red, Glassnode views this as late-stage bear market behavior in which investors keep their coins until they become lucrative.
Could the Fed’s policy decision spark a trending move in Bitcoin and other cryptocurrencies? To discover out, let’s look at the charts of the top ten cryptocurrencies.
BTC/USDT
Bitcoin fell below its moving averages on March 15, but the candlestick’s extended tail shows robust demand at lower levels. The bulls kept purchasing, pushing the price above the 50-day simple moving average (SMA) ($40,151).
If bulls keep the price above the 50-day SMA, the BTC/USDT pair might climb to the overhead zone between $45,400 and the ascending channel’s resistance line. In this zone, the bears are anticipated to mount a strong defense.
If the price falls from the overhead zone, the pair might linger in the channel for a few more days. The flat moving averages and the relative strength index (RSI) at the middle also signal to range-bound behavior in the near term.
In contrast to this idea, if the price falls below the moving averages, it indicates that bears will continue to sell at greater levels. The bears will next attempt to lower the price below the channel’s support line, resuming the downtrend.
ETH/USDT
Ether (ETH) has recovered off the symmetrical triangle’s support line, and buyers are seeking to push the price above the 50-day simple moving average ($2,763).
If they are successful, the price might increase to the psychological threshold of $3,000 and subsequently to the triangle’s resistance line. To suggest a probable shift in trend, the bulls must push the price above the triangle and keep it there.
The RSI has also formed a symmetrical triangle, and a breakout from it might indicate that buyers are in control.
This bullish perspective will be rendered incorrect if the price falls from its present level and breaks below the triangle’s support line. This might pave the way for a decline of $2,159.
BNB/USDT
Buyers are attempting to push BNB above the moving averages, but the bears may have other intentions. They will try to delay the rebound around the moving averages, as they have done the last three times.
Both moving averages are flattening out, and the RSI has gone over 48, suggesting that bulls are aiming to make a return. If buyers push the price over the 50-day simple moving average ($388), the BNB/USDT pair might reach $425 and then $445.
In contrast to this belief, if the price falls below the moving averages, it indicates that mood is still negative and traders are selling around resistance levels. The bears will next attempt to drive the stock below the solid support level of $350.
XRP/USDT
On March 12, Ripple (XRP) deviated from the downtrend line and fell to the moving averages. Despite successfully defending the moving averages, the bulls have yet to generate a substantial rebound off of them.
Both moving averages have flattened down, and the RSI is towards the midway, suggesting that supply and demand are in balance. To take the upper hand, buyers will need to push the price above the downtrend line and keep it there. The XRP/USDT pair might possibly rise to $0.91 before reaching the psychological milestone of $1.
In contrast, if the price falls and breaks below $0.69, the bears will have the upper hand. The pair may then fall below $0.62, a key support level.
LUNA/USDT
On March 14, Terra’s LUNA token broke over the $94 barrier level, but the bulls were unable to maintain the higher levels. On March 15, the bears drove the price down below $94 again.
The bears will now attempt to bring the stock below the 20-day exponential moving average (EMA) of $84. If they are successful, the LUNA/USDT pair might fall below $70. A move like this might indicate that the bullish impetus has waned.
In contrast to this idea, if the price increases from its present level or bounces off the 20-day EMA, buyers will try to drive the price back near $105. a gap and a conclusion
The bears will now attempt to bring the stock below the 20-day exponential moving average (EMA) of $84. If they are successful, the LUNA/USDT pair might fall below $70. A move like this might indicate that the bullish impetus has waned.
In contrast to this idea, if the price increases from its present level or bounces off the 20-day EMA, buyers will try to drive the price back near $105. A break and closing above this resistance level might signal the start of a new upswing. The pair may initially rise to $115 and then to $125.
SOL/USDT
On March 14, the bulls pulled Solana (SOL) back above the breakdown level of $81 signaling that the latest breakdown on March 13 was a bear trap.
The return of the uptrend might be indicated by a break of this obstacle. The pair may initially rise to $115 and then to $125.
SOL/USDT
On March 14, the bulls pulled Solana (SOL) back above the breakdown level of $81 signaling that the latest breakdown on March 13 was a bear trap.
If the price falls from its present level, the ADA/USDT pair might fall below the strong support level of $0.74. This is a critical level for the bulls to maintain because if it is breached, the pair might fall to the next support level at $0.68.
If the price breaks and closes above the 20-day EMA, the pair may try a climb to the psychological threshold of $1. This level is expected to provide significant resistance. If the price falls below this level of resistance, the pair might stay range-bound between $1 and $0.74 for a few days.
Related: Bitcoin price surpasses $41,000 as hopes of peace in Eastern Europe propel Bitcoin higher
AVAX/USDT
Avalanche (AVAX) has been trading below the uptrend line since March 13, but bears have been unable to exploit this weakness and drive the stock below the immediate support level of $64. This suggests a scarcity of sellers at the lower levels.
The bulls are aiming to re-establish price above the uptrend line and moving averages. If they are successful, the AVAX/USDT pair may climb to the falling channel’s downtrend line. This is an essential level to keep an eye on since the bears have successfully guarded it four times before.
If the price continues to fall from the downtrend line, it will indicate that the bears are not about to give up. The sellers will next attempt to lower the price below $64.
In contrast, if bulls force the price above the channel, it indicates that the downturn may be finished. After that, the pair might rise to the psychological threshold of $100.
DOT/USDT
Polkadot (DOT) has been trading around the 20-day moving average ($17) for the previous two days, suggesting that bulls are buying dips.
The flattish moving averages and the RSI at the midway indicate that the bears may be losing ground. The bulls are anticipated to try another surge over the overhead resistance level of $19.
If they succeed, the DOT/USDT pair might surge above $23, where the bears could provide a significant challenge. A closure above this level would complete the double bottom pattern.
This bullish outlook will be rendered null and void if the price falls and breaks below the sturdy support level of $16. This might reduce the price to $14.
DOGE/USDT
On March 14, Dogecoin (DOGE) fell below the 20-day EMA ($0.12), signaling that bears are selling aggressively at higher levels.
One small plus is that the bulls have not let the price to go below the solid support level of $0.10. This may keep the DOGE/USDT pair range-bound between $0.12 and $0.10 for a few days longer.
A break and closure above the 20-day EMA may be the first indication that selling pressure is easing. The bulls will next attempt to take the pair over the 50-day simple moving average ($0.13), paving the way for a probable rise to $0.17.
Alternatively, if the price falls below $0.10, the selling might pick up and the pair could fall below $0.06.
