EOS, STX, IMX and MKR show bullish signs as Bitcoin searches for direction

US stock markets made a strong recovery this week, but Bitcoin (BTC) failed to follow suit. This means that cryptocurrency investors stayed away and could be concerned about the ongoing problems at Silvergate bank. This fear could be what is behind the total crypto market capitalization falling to almost $1 trillion.

Behavioral analytics platform Santiment said in a report on March 5 that there was a “large increase in bearish sentiment” according to its bullish versus bearish word comparison chart for social trends. However, the firm added that “that kind of overwhelming bearish sentiment could lead to a nice bounce to silence the critics.”

Another short-term positive for the crypto markets is the weakness in the US dollar index (DXY), which fell by 0.70 in the last 7 days. This suggests that crypto markets may attempt a recovery over the next few days. As long as Bitcoin remains above $20,000, select altcoins may outperform the broader markets.

Let’s study the charts of Bitcoin and the four altcoins that show promise in the short term.

BTC/USDT

Bitcoin fell below the $22,800 support on March 3. Buyers tried to push the price back above the March 5 breakdown level, but the long wick on the candlestick suggests that bears are trying to turn $22,800 into resistance.

The 20-day exponential moving average ($23,159) has started to decline and the relative strength index (RSI) is below 44, indicating that bears are trying to strengthen their position. Sellers will try to lower the price below the support at $21,480. If they succeed, the BTC/USDT pair could retest the vital support at $20,000.

If bulls want to prevent the downside, they need to quickly push the price above the 20-day EMA. Such a move would suggest aggressive buying at lower levels. The pair could then rise to $24,000 and then rally to $25,250. A break above this resistance would indicate a potential trend change.

The moving averages are going down on the 4-hour chart and the RSI is near 39. This indicates that the bears have the upper hand. If the price breaks down from the 20-EMA and breaks below $21,971, the pair could retest the support at $21,480.

Instead, if bulls drive the price above the 20-EMA, it would indicate that the bears may be losing their grip. The pair can then climb to the 50-simple moving average. This is an important level for the bears to defend because a break above it could open the gates for a rally to $24,000.

EOS/USDT

EOS (EOS) broke above the vital $1.26 resistance on March 3, but the bulls could not sustain the higher levels. However, a positive sign is that the price has not fallen below the 20-day EMA ($1.17).

The gradually rising moving averages and RSI in the positive zone indicate advantage for the bulls. The EOS/USDT pair has formed a rounding bottom pattern that will complete on a break and close above the $1.26 to $1.34 resistance zone. This reversal setup has a target target of $1.74.

The key support to watch on the downside is the 50-day SMA ($1.10). Buyers have not let the price fall below this support since January 8, and so a break below it could accelerate selling. The next support on the downside is $1 and then $0.93.

The bears pulled the price below the 20-EMA, but a minor positive is that bulls have not allowed the pair to slide to the 50-SMA. This suggests that lower levels continue to attract buyers. If the price rises above the 20-EMA, the bulls will again try to clear the barrier at $1.26. If they do, the pair could rise to $1.34.

This bullish view could be invalidated in the short term if the price goes down and breaks below the 50-SMA. That could extend the fall to $1.11.

STX/USDT

Stacks (STX) surged from $0.30 on February 17th to $1.04 on March 1st, a 246% increase in a short period of time. Usually, vertical rallies are followed by sharp declines, and that’s what happened.

The STX/USDT pair plunged to the 20-day EMA ($0.69) where it is finding buying support. The 50% Fibonacci retracement level of $0.67 is also nearby, therefore the bulls will try to protect the level vigorously. On the upside, the bears will try to sell the rallies in the zone between $0.83 and $0.91.

If the price goes down from this overhead zone, the sellers will again try to deepen the correction. If $0.67 breaks, the next support is at the 61.8% retracement level of $0.58.

Contrary to this assumption, if buyers push the price above $0.91, the pair could rise to $1.04. A break above this level will indicate a possible resumption of the uptrend. The pair could then rise to $1.43.

The 4-hour chart shows that the 20-EMA is sloping down and the RSI is in negative territory, indicating that bears have a slight edge. Sellers are likely to defend the moving averages during pullbacks. They will try to maintain the hold and lower the price to $0.65 and then to $0.56. The bulls will try to defend this support zone hard.

The first sign of strength will be a break and close above the 50-SMA. The pair may then rise to $0.94 and later to $1.04.

Related: Binance recommends P2P as Ukraine suspends use of hryvnia on crypto exchanges

IMX/USDT

ImmutableX (IMX) rebounded from the 50-day SMA ($0.88) on March 3 and closed above the 20-day EMA ($1), indicating solid demand at lower levels.

The IMX/USDT pair could rise to $1.12 where the bears will again try to stop the recovery. If buyers bulldoze through, the pair could accelerate towards the stiff overhead resistance at $1.30. This is a crucial level to keep an eye on because a break and close above it can signal the start of a new uptrend. The pair could then rise to $1.85.

Conversely, if the price goes down from today’s level or $1.12, it would indicate that the bears have not yet given up. Sellers will then again try to lower the pair below the 50-day SMA and gain the upper hand. If they succeed, the pair could fall to $0.63.

The 4-hour chart shows the price fluctuating between $0.92 and $1.12. Usually, in a range, traders buy near the support and sell near the resistance. Price action within the range can be random and unstable.

If the price rises above the resistance, it indicates that the bulls have overpowered the bears. The pair could then rise towards $1.30. On the contrary, if bears lower the price below $0.92, the pair could turn negative in the short term. Support on the downside is at $0.83 and next at $0.73.

MKR/USDT

After a brief pullback, Maker (MKR) is trying to resume the rally. This suggests that sentiment remains positive and traders see the falls as a buying opportunity.

The rising moving averages and RSI in the positive territory indicate that the path of least resistance is going up. If buyers sustain the price above $963, the MKR/USDT pair may start its journey to the $1,150 to $1,170 resistance zone.

If bears want to stop the bullish trend, they need to pull the price below the 20-day EMA ($807). If they pull it off, the stops of several short-term traders could be hit. The pair could then go down to the 50-day SMA ($731).

The pair had been trading between $832 and $963 for some time, but the bulls are trying to kick the price above the range. The 20-EMA has emerged and the RSI is in the positive territory, indicating that bulls are in command.

If the price holds above $963, the pair may attempt a rally to the $1,094 target. On the other hand, if the price drops sharply below $963, it would indicate that the breakout may have been a bull trap. That may prolong the consolidation for a while longer.

The views, thoughts and opinions expressed herein are those of 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.