BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, SOL, DOT, SHIB
After an improvement on 16 March, the US stock markets are down again on 17 March. Investors remain concerned about the vulnerability of banks in the US and Europe. A good result for cryptocurrency investors is that Bitcoin (BTC) has remained uncoupled from the stock markets and has risen to its highest level since January 12.
Galaxy Digital founder and CEO Michael Novogratz said in an interview with CNBC that the US and the world will face a credit crunch as banks lend less to rebuild capital. He said investors should be long on Bitcoin and crypto because these are the times it was created for.
Quantitative tightening appears to be giving way to a period of quantitative easing. Banks have already borrowed $150 billion from the Federal Reserve, which is more than the amount borrowed during the 2008 financial crisis.
Analysts pointed out that the Fed has added $300 billion to its balance sheet in a week, second only to the $500 billion pumped in after the March 2020 crash. QE in 2020 sparked a rally in Bitcoin that took it from around $4,000 to $69,000 .
Will history repeat itself? Can Bitcoin and Altcoins Sustain the Higher Levels? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin bulls bought the dip to $24,000 on March 15 and pushed the price above the strong overhead resistance of $25,250 on March 17. This completes a reverse head and shoulders (H&S) pattern.
There is no major resistance between the current level and $32,000, therefore the bulls may find it easy to cover this distance in a short time. The bears can mount a strong defense at $32,000, but if bulls overcome it, the BTC/USDT pair can extend its uptrend to the pattern target of $35,024.
The rising 20-day exponential moving average ($23,298) and the relative strength index (RSI) near the overbought zone indicate that the bulls are in command.
If bears want to regain control, they need to quickly reverse direction and sink the pair below the moving average. Until then, the bulls will likely view the declines as a buying opportunity.
Ether price analysis
Ether (ETH) pulled back from the March 16 moving averages, indicating that traders are buying on the dip.
The bulls will try to push and sustain the price above the $1,743 to $1,780 resistance zone. If they succeed, the ETH/USDT pair could accelerate towards the psychologically important $2,000 level. This is the final hurdle over which the pair will signal the start of a potential uptrend.
The bears probably have other plans. They will try to stop the up move in the overhead zone and pull the pair back below the moving averages. That could catch the aggressive bulls and the pair could then collapse to $1,461.
BNB price analysis
The long tail of BNB’s (BNB) March 15 candlestick shows that the bulls are buying dips to the 20-day EMA ($302). This signals a change in sentiment from selling on the rally to buying on the dip.
The relief rally took off on March 17 and soared above the overhead resistance at $318.
Buyers are trying to strengthen their position further by kicking the price above $338. If they do, the negative H&S pattern will be invalidated. The BNB/USDT pair may first increase to $360 and later to $400.
On the downside, a break below the 20-day EMA would indicate that bears are back in the driver’s seat.
XRP Price Analysis
XRP (XRP) has consolidated within the tight range between the 50-day simple moving average ($0.38) and the support at $0.36.
Usually, a tight range trade is followed by an increase in volatility. The bulls will try to catapult the price above the 50-day SMA. If they pull it off, it would signal the start of a stronger recovery to $0.42. This level could again act as a formidable resistance, but if crossed, the rally could reach $0.51.
This bullish view will be invalidated in the short term if the price declines and plunges below $0.36. The pair may then fall to the strong support zone between $0.32 and $0.30.
Cardano Price Analysis
Cardano (ADA) is stuck between the 50-day SMA ($0.36) and the strong support at $0.29. The bulls are trying to push the price above the 20-day EMA ($0.34).
If they manage to do so, the ADA/USDT pair could climb to the 50-day SMA. This level can attract sellers who will try to stop the recovery. If the price declines sharply from this level, the range-bound action may continue for some time.
Alternatively, if bulls drive the price above the 50-day SMA, the pair may rally to the neck of the inverse H&S pattern. This is an important level to keep an eye on because a break and close above it could signal the start of a new uptrend.
Dogecoin Price Analysis
Dogecoin (DOGE) bounced back from the $0.07 level and has reached the downtrend line. This suggests that bulls are buying on smaller dips.
A break and close above the downtrend line will be the first sign that the correction may be over. The 50-day SMA ($0.08) may act as a resistance, but it is likely to be breached. The DOGE/USDT pair may then start the rally to $0.09 and then to $0.10.
Sellers are expected to defend the $0.10 to $0.11 zone with all their might because a break above it will open the doors for a possible rally to $0.16. On the downside, a slide below the $0.07 support would tip the advantage back in favor of the bears.
Polygon price analysis
Polygon (MATIC) rebounded from $1.07 on March 15, indicating that the bulls are trying to turn the $1.05 level into support.
The 20-day EMA ($1.16) is flattening and the RSI is near the midpoint, suggesting a balance between supply and demand. If bulls drive the price above the 50-day SMA ($1.22), the MATIC/USDT pair could gain momentum and rise to $1.30. This level may act as a small obstacle, but it is likely to be crossed. The next stop could be $1.42.
On the other hand, if the price breaks sharply from the 50-day SMA, it would indicate that the bears are continuing to sell on the rally. The pair may then oscillate between the 50-day SMA and $1.05 for a while longer.
Related: Bets on Turmoil: Deribit Launches Bitcoin Volatility Futures
Solana price analysis
Solana (SOL) rebounded to $18.70 on March 16, showing that the bulls are not waiting for a deeper decline to buy.
The relief rally has reached the moving averages, which are likely to provide strong resistance. If the price declines and breaks below $18.70, it will suggest that the SOL/USDT pair may remain ranged between the 50-day SMA ($22.21) and $15.28 for some time.
The pair will indicate a potential trend change after the bulls have pushed the price above the downtrend line. That could start a rally to $27.12.
Polkadot price analysis
Polkadot (DOT) dipped below the 20-day EMA ($6.09) on March 15, but the bears were unable to sustain the lower levels. Buyers bought the dip and pushed the price back above the 20-day EMA on March 16.
The bulls are looking to build on their advantage by pushing the price above the overhead resistance at the 50-day SMA ($6.41). If this level scales, the DOT/USDT pair could rise to the 61.8% Fibonacci retracement level of $6.85.
This level should again act as a strong resistance, but if bulls turn the moving averages into support during the next pullback, it would indicate that bulls are buying on dips. That will increase the possibility of the pair forming an inverted H&S pattern.
Conversely, if the price again declines from the 50-day SMA and breaks below the 20-day EMA, it will indicate a few days of range-bound action.
Shiba Inu Price Analysis
Shiba Inu (SHIB) bounced back from the $0.000010 support on March 16, indicating that the bulls are trying to initiate a reversal.
The recovery faces resistance in the zone between the 20-day EMA ($0.000011) and the downtrend line of the descending channel. The bears will again attempt to lower the price below the $0.000010 support. If they succeed, the SHIB/USDT pair may slide to the support line of the channel.
Conversely, if bulls push the price above the channel, it would indicate that the corrective phase may be over. The 50-day SMA ($0.000012) may also offer stiff resistance, but if this level is cleared, the SHIB/USDT pair could climb to $0.000014 and then to $0.000016.
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.
