- March 22, 2023
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
Technical charts are beginning to suggest that BTC is at the end of its bear market cycle, and traders believe this could yield positive results for most altcoins.
Bitcoin (BTC) has been sustaining above the $25,000 level for the past few days, increasing the likelihood that the bear market may have ended. Generally, in the initial stages of a new bull phase, several analysts remain in a state of disbelief and expect the resumption of the downtrend.
Another group of traders continue to wait for the dip to buy at lower levels but the price does not oblige. Finally, the traders sitting on the fence throw in the towel and buy and that is when the correction is likely to happen. Such a pullback shakes out the weak hands and transfers the asset into the hands of investors with conviction.
When a new trend is getting established, certain events tend to cause a knee-jerk reaction but it is unlikely that the trend is reversed. In Bitcoin’s case too, a drop to trap the aggressive bears is possible but there is a low possibility that the bear market will resume.
What are the important levels to watch out for on the upside and the downside in Bitcoin and altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
After a two-day consolidation, Bitcoin has risen above the $28,500 overhead resistance on March 22. This suggests that the bulls have asserted their dominance.
The upsloping 20-day exponential moving average ($25,180) and the relative strength index (RSI) in the overbought zone indicate the path of least resistance is to the upside. A break above $28,500 will clear the path for a possible rally to the $30,000 to $32,500 resistance zone.
In case of a correction, the first support to watch on the downside is $25,250. If the price rebounds off this level, it will suggest that the neckline of the head and shoulders (H&S) pattern has flipped into support.
The problem will arise if the $25,250 level cracks because that may trigger the stops of several bulls. The BTC/USDT pair could then nosedive to the 200-day simple moving average ($20,020).
Ether price analysis
Ether’s (ETH) bounce off $1,717 suggests that the bulls are purchasing the minor dips and not waiting for a deeper correction to buy. However, buyers failed to overcome the obstacle at $1,842, indicating that bears are protecting this level with all their might.
Usually, a tight consolidation near a local top suggests that the bulls are not closing their positions in a hurry as they anticipate another leg higher. The rising 20-day EMA ($1,679) and the RSI in the positive territory indicate that bulls have a slight edge.
If buyers thrust the price above $1,842, the ETH/USDT pair may jump to $2,000 and later attempt a rally to $2,200. This bullish view will invalidate in the near term if the price turns down and plunges below the 20-day EMA. The pair may then fall to $1,600.
BNB price analysis
The failure of the bulls to push BNB (BNB) above $346 in the past few days shows that the bears are fiercely guarding the level. That may have resulted in profit-booking by the short-term bulls, which has pulled the price toward the 20-day EMA ($314).
If the price rebounds off the 20-day EMA, it will suggest that the sentiment has turned positive and traders are viewing the dips as a buying opportunity. The bulls will then make one more attempt to clear the hurdle at $346. If they succeed, the BNB/USDT pair could soar toward $400.
On the other hand, if the price plummets below the 20-day EMA, it will suggest the start of a deeper correction toward the 200-day SMA ($288). The pair may then oscillate between $280 and $346 for a few days.
XRP price analysis
XRP (XRP) skyrocketed above the 200-day SMA ($0.40) and the stiff overhead resistance of $0.43 on March 21, indicating a buying stampede.
After the sharp rally, traders seem to be booking profits near $0.50. That has resulted in a pullback to the breakout level of $0.43. If bulls flip this level into support, the XRP/USDT pair may again try to rise above $0.50. If that happens, the pair could soar to $0.56. A break and close above this level will indicate the start of a potential new uptrend.
Conversely, if the price continues lower and breaks below the $0.43 support, it will suggest that traders are rushing to the exit. That could trap the aggressive bulls and sink the pair to the 200-day SMA.
Cardano price analysis
Cardano (ADA) surged above the moving averages on March 21, indicating that lower levels are attracting buyers.
However, the bears have not yet given up and are trying to halt the recovery at $0.39 as seen from the long wick on the March 21 and 22 candlesticks. The onus is on the bulls to flip the moving averages into support. If they manage to do that, the ADA/USDT pair could rally to the neckline of the developing H&S pattern.
Contrarily, if the price turns down and slips below the moving averages, it will indicate that higher levels continue to attract sellers. The pair could then descend to $0.30.
Dogecoin price analysis
Dogecoin (DOGE) has been trading between $0.07 and the 200-day SMA ($0.08) for the past few days. This suggests indecision among the bulls and the bears about the next directional move.
The flattish moving averages and the RSI near the midpoint suggest that the range-bound action may continue for some more time. The first sign of strength will be a break and close above the 200-day SMA. That could open the doors for a possible rise to $0.09 and later to $0.10.
If bears want to gain the upper hand, they will have to sink the price below the support at $0.07. The DOGE/USDT pair may then slump to $0.06 and subsequently to the crucial support at $0.05.
Polygon price analysis
Polygon (MATIC) has been swinging above and below the 20-day EMA ($1.15) for the past few days, indicating a lack of direction. The bulls are buying on dips while the bears are selling the rallies.
The flat 20-day EMA ($1.15) and the RSI just below the midpoint do not give a clear advantage either to the bulls or the bears. This suggests that the MATIC/USDT pair may consolidate between $1.05 and $1.30 for a while.
The longer the price consolidates in the range, the stronger will be the eventual breakout from it. If bulls force the price above $1.30, the pair may accelerate to $1.57 and thereafter to $1.75. Alternatively, if the price breaks below the 200-day SMA ($0.96), it will suggest that bears are back in command. The pair could then tumble to $0.69.
Related: Why is Cardano price up today?
Solana price analysis
Buyers tried to push Solana (SOL) above the downtrend line on March 20 but the bears held their ground. A minor positive in favor of the bulls is that they did not allow the price to dip below the 20-day EMA ($21.18).
The RSI is in positive territory, indicating a slight advantage to buyers. If bulls thrust the price above the downtrend line, it will signal a potential trend change. The SOL/USDT pair could first rise to $27.12 where the bears may again mount a strong defense. If buyers overcome this hurdle, the pair could pick up momentum and rally to $39.
Contrarily, if the price turns down from the current level and breaks below the 20-day EMA, it will suggest that bears are trying to gain the upper hand. The pair may then slide to $15.28.
Polkadot price analysis
Polkadot (DOT) bounced off the 200-day SMA ($6) on March 21, indicating that the bulls are trying to flip the level into support.
The flattish 20-day EMA ($6.18) and the RSI near the midpoint signal a balance between supply and demand. This balance will tilt in favor of the buyers if they propel the price above the 61.8% Fibonacci retracement level of $6.85. The DOT/USDT pair could then climb toward the neckline of the developing H&S pattern.
The bears are likely to have other plans. They will try to protect the overhead resistance and sink the price below the 200-day SMA. If they do that, the pair may again slump to $5.15.
Shiba Inu price analysis
Shiba Inu (SHIB) is getting squeezed between the downtrend line of the descending channel pattern and the psychological support at $0.000010.
This tight range trading is unlikely to continue for long and a breakout looks imminent. The price has been clinging to the downtrend line, which suggests that the SHIB/USDT pair is likely to climb above the channel. There is a minor resistance at $0.000012 but if this level is crossed, the pair may rise toward $0.000016.
This positive view will be negated in the near term if the price turns down and plunges below the $0.000010 support. That could pull the pair down to $0.000008.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
