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This week Bitcoin (BTC) and select altcoins broke above their immediate resistance levels and moved higher, which propelled the total crypto market capitalization above $2 trillion on March 24.
One of the triggers that could have driven crypto prices higher was BlackRock CEO Larry Fink’s letter to shareholders where he said that the Russia-Ukraine conflict has opened up avenues for digital currencies to be used as a mode of settlement for international transactions.
Another bit of news that may have aided the up-move in crypto prices was that Goldman Sachs redesigned its website with emphasis on the growth of digital assets and the metaverse, mentioning them as “megatrends.”
Apart from the increasing institutional interest, Minneapolis Federal Reserve President Neel Kashkari’s statement that the central bank could raise interest rates up to seven times in 2022 to curb inflation may also have boosted bullish sentiment in cryptocurrencies.
Can bulls sustain the higher prices and build upon the up-move or will bears sell aggressively and trap the buyers? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC/USDT
Bitcoin closed above the immediate resistance at $42,594 on March 23, indicating that bulls absorbed the supply by the bears. That opened the doors for a move to $45,400 where the bears could again mount a strong defense.
Both moving averages have turned up gradually and the relative strength index (RSI) is in positive territory, indicating an advantage to buyers. If buyers push the price above $45,400, the BTC/USDT pair could rally to the resistance line of the ascending channel.
If the bulls clear this obstacle, the pair could rise to the stiff overhead zone between the psychological resistance at $50,000 and $52,000.
Any correction from the current level is likely to find support near $42,594 and the moving averages. The bears will have to pull and sustain the price below the moving averages to indicate that the bulls may be losing their grip.
ETH/USDT
The bulls are trying to sustain Ether (ETH) above the resistance line of the symmetrical triangle but the long wick on the candlestick suggests that bears are selling at higher levels aggressively.
The moving averages have completed a bullish crossover and the RSI has risen into the positive zone, suggesting that the path of least resistance is to the upside. If the price sustains above the triangle, the ETH/USDT pair could rally to $3,500 and later to the pattern target at $3,907.
Contrary to this assumption, if the price re-enters the triangle, the bears will try to pull the pair to the moving averages. If the price rebounds off the moving averages, it will suggest that the sentiment remains positive and traders are accumulating on dips. That will increase the possibility of a break above the triangle.
The bears will have to pull the price below the moving averages to negate the bullish view. The pair could then extend its stay inside the triangle for a few more days.
BNB/USDT
BNB has been consolidating in a large range between $445 and $350 for the past few days. There is a minor resistance at $425 but if bulls clear this hurdle, a move to $445 is possible.
The moving averages have completed a bullish crossover and the RSI is in the positive territory, which suggests a possible change in trend. A break and close above $445 could open the doors for a possible rally to $500.
Alternatively, if the price turns down from the current level or the overhead resistance and breaks below the moving averages, it will suggest that traders may be booking profits near the resistance. That could keep the BNB/USDT pair stuck inside the range for a few more days.
XRP/USDT
Ripple (XRP) is facing strong resistance at $0.86. A minor positive is that the bulls have not allowed the price to break below the moving averages. This suggests that traders are not rushing to the exit.
If the price turns up from the current level or rebounds off the moving averages, the bulls will strive to clear the overhead hurdle at $0.86. If they succeed, the XRP/USDT pair could rally to $0.91 and thereafter rise toward the psychological level at $1.
The rising moving averages and the RSI in the positive territory indicate an advantage to buyers. This positive view will be negated in the short term if the bears sink and sustain the price below the 50-day simple moving average (SMA) ($0.77).
ADA/USDT
Cardano (ADA) is attempting to start a new uptrend. When the bulls pushed the price above the overhead resistance at $1 on March 23, it was the first indication that the bears may be losing their grip.
The next level to watch on the upside is $1.26 where the bears will try to stall the relief rally. If the price turns down from the current level or the overhead resistance, the bears will try to pull the ADA/USDT pair to the critical level at $1.
If the price rebounds off $1 with strength, it will suggest that the bulls have flipped the level into support. The buyers will then make one more attempt to clear the obstacle at $1.26. If they succeed, the next stop could be $1.60. This positive view will invalidate if the price breaks below $1.
LUNA/USDT
Terra’s LUNA token once again turned down from the overhead resistance at $96 on March 24 suggesting that bears are not willing to give up easily. The price could now slide to the 20-day exponential moving average (EMA) ($89).
If the price rebounds off the 20-day EMA, it will suggest that bulls are defending this level. The buyers will then make one more attempt to clear the overhead hurdle at $96. If they succeed, the LUNA/USDT pair could rise to the all-time high at $105.
Conversely, if the price turns down and breaks below the 20-day EMA, it will suggest that traders may be booking profits due to the failure of the pair to rise above $96. The price could then drop to $82 and next to $75.
SOL/USDT
Solana (SOL) broke and closed above the 50-day SMA ($93) on March 23. This move also invalidated the bearish descending triangle pattern. Strong buying by the bulls has pushed the price to the immediate resistance at $106.
The moving averages are about to complete a bullish crossover and the RSI is in the positive territory, which indicates that bulls have the upper hand. If buyers drive the price above $106, the SOL/USDT pair could rally to $122.
Alternatively, if the price turns down from the current level but bounces off the 20-day EMA ($91), it will suggest that the sentiment remains positive and traders are buying the dips. That will enhance the prospects of a break above the overhead resistance.
A break and close below the 20-day EMA will suggest that the pair may consolidate between $81 and $106 for a few more days.
Related: Beware the Bitfinex whale: New $45K BTC sell wall appears amid worries Bitcoin could retrace
AVAX/USDT
Avalanche (AVAX) has been trading between the overhead resistance at $92 and the moving averages. This suggests that bears are selling near $92 and bulls are buying on dips to the moving averages.
If the price turns up from the current level or rebounds off the moving averages, the bulls will again attempt to clear the overhead hurdle at $92. If they manage to do that, the AVAX/USDT pair could pick up momentum. The bears may try to stall the rally at the psychological level at $100 but if bulls overcome this barrier, the rally could reach $119.
This positive view will invalidate in the short term if the price breaks below the moving averages. Such a move will suggest that the pair may remain range-bound between $92 and $65 for a few more days.
DOT/USDT
Polkadot (DOT) has continued its upward journey, which could reach the overhead resistance at $23. The bears are expected to mount a strong defense at this level.
If the price turns down from $23 but bulls do not cede ground, it will indicate that traders anticipate a move higher. That will increase the likelihood of a break above $23. If that happens, the DOT/USDT pair could rally to $28 and thereafter to $30.
Conversely, if the price turns down from the current level or the overhead resistance and breaks below the moving averages, it will suggest that the bears are active at higher levels. That could keep the pair range-bound between $23 and $16 for a few more days.
DOGE/USDT
Dogecoin (DOGE) broke above the 50-day SMA ($0.13) on March 24 but the bulls are struggling to sustain the higher levels. This indicates that the bears are not ready to give up their advantage.
The 20-day EMA ($0.12) has started to turn up and the RSI is in the positive territory, indicating that bulls have the upper hand. If the price rebounds off the moving averages, the bulls will again try to clear the overhead resistance and push the DOGE/USDT pair toward $0.17.
Alternatively, if the price turns down and breaks below the moving averages, it will suggest that the breakout on March 24 may have been a bear trap. The sellers will then try to pull the pair to the strong support at $0.10.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.
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By: Cointelegraph By Rakesh Upadhyay
cointelegraph.com
