After recovering on March 16, US equity markets fell again on March 17. Investors remain concerned about the vulnerability of banks in the United States and Europe. A silver lining for cryptocurrency investors is that Bitcoin (BTC) remained decoupled from stock markets and hit its highest level since January 12.
Galaxy Digital founder and CEO Michael Novogratz said in an interview with CNBC that the United States and the world will face a credit crunch as banks lend less to replenish capital. He said investors should be long on bitcoin and crypto because those are the times he 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, more than the amount borrowed during the 2008 financial crisis.
Analysts pointed out that the Fed added $300 billion to its balance sheet in a week, just behind the $500 billion pumped out after the March 2020 crash. QE in 2020 sparked a Bitcoin rally that did so. go from around $4,000 to $69,000.
Will history repeat itself? Could Bitcoin and altcoins sustain the highs? Let’s study the charts of the top 10 cryptocurrencies to find out.
bitcoin price analysis
Bitcoin bulls bought the low 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, so bulls may find it easy to cover this distance in short order. The bears can mount a strong defense at $32,000, but if the bulls overcome it, the BTC/USDT pair could extend its uptrend to the $35,024 pattern target.
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 charge.
If the bears want to regain control, they will need to quickly reverse direction and push the pair below the moving averages. Until then, bulls will likely view the dips as a buying opportunity.
Ether Price Analysis
Ether (ETH) bounced off the moving averages on March 16, indicating traders are buying lower.
The bulls will attempt to push and hold the price above the $1743-$1780 resistance zone. If successful, the ETH/USDT pair could accelerate towards the psychologically important $2,000 level. This is the final hurdle above which the pair will signal the start of a potential uptrend.
The bears probably have other plans. They will try to stop the bullish move in the air zone and bring the pair back below the moving averages. This could trap aggressive bulls and the pair could then crash to $1,461.
BNB Price Analysis
The long tail on the March 15 candlestick of BNB (BNB) shows that the bulls are buying the lows of the 20-day EMA ($302). This signals a shift in sentiment from selling on rallies to buying on declines.
The relief rally gained momentum on March 17 and soared above overhead resistance at $318.
The buyers are trying to further strengthen their position by driving the price above $338. If they do, the negative health and safety model will be invalidated. The BNB/USDT pair could first rally to $360 and later to $400.
In contrast, a break below the 20-day EMA will signal that the bears are back in the driver’s seat.
XRP Price Analysis
XRP (XRP) consolidated inside the narrow range between the 50-day simple moving average ($0.38) and the support at $0.36.
Typically, narrow range trading is followed by an increase in volatility. The bulls will attempt to catapult the price above the 50-day SMA. If they can achieve this, it will signal the start of a stronger rally to $0.42. This level may again act as a formidable resistance but if breached, the rally could reach $0.51.
This positive view will be invalidated in the short term if the price turns down and drops below $0.36. The pair could then drop 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 strong support at $0.29. The bulls are trying to push the price above the 20-day EMA ($0.34).
If they succeed, the ADA/USDT pair could climb up to the 50-day SMA. This level may attract sellers who will try to dampen the recovery. If the price drops sharply from this level, the range-bound action may continue for some time.
Alternatively, if the bulls push the price above the 50-day SMA, the pair could rally to the neckline of the inverse H&S pattern. This is an important level to watch as a breakout and close above it can signal the start of a new uptrend.
Dogecoin Price Analysis
Dogecoin (DOGE) bounced off the $0.07 level and reached the downtrend line. This suggests that the bulls are buying on minor dips.
A breakout 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 resistance, but it is likely to be broken. The DOGE/USDT pair could then start its rally to $0.09 and then to $0.10.
Sellers should defend the $0.10-$0.11 zone with all their might, as a break above it will open the doors for a possible rally to $0.16. On the downside, a drop below the $0.07 support will tip the advantage in favor of the bears.
Polygon Price Analysis
Polygon (MATIC) rose 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 the bulls propel the price above the 50-day SMA ($1.22), the MATIC/USDT pair could gain momentum and rally to $1.30. This level may be a minor obstacle, but it is likely to be crossed. The next stop may be $1.42.
On the other hand, if the price is falling sharply from the 50-day SMA, it will suggest that the bears are continuing to sell on the rallies. The pair can then swing between the 50-day SMA and $1.05 for a while longer.
Related: Betting on Turmoil: Deribit Launches Bitcoin Volatility Futures
Solana Price Analysis
Solana (SOL) rebounded from $18.70 on March 16, showing that bulls are not waiting for a deeper decline to buy.
The relief rally has reached the moving averages, which are likely to offer strong resistance. If the price declines and breaks below $18.70, it will suggest that the SOL/USDT pair could stay in a range between the 50-day SMA ($22.21) and $15.28 for some time.
The pair will indicate a potential trend change after the bulls push the price above the downtrend line. This could trigger 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. The buyers bought the dip and pushed the price back above the 20-day EMA on March 16th.
The bulls are trying to leverage their edge by pushing the price above the broad resistance at the 50-day SMA ($6.41). If this level is scaled, the DOT/USDT pair could reach the 61.8% Fibonacci retracement level of $6.85.
This level should again act as strong resistance, but if the bulls flip the moving averages back into support on the next pullback, it will suggest that the bulls are buying on the dips. This will increase the possibility of the pair forming an inverse H&S pattern.
On the contrary, if the price falls again from the 50-day SMA and crosses below the 20-day EMA, it will indicate a few days of range-limited action.
Shiba Inu Price Analysis
Shiba Inu (SHIB) bounced off the $0.000010 support on March 16, indicating that the bulls are trying to initiate a reversal.
The rally is facing resistance in the area between the 20-day EMA ($0.000011) and the descending channel downtrend line. The bears will again attempt to drive the price below the $0.000010 support. If successful, the SHIB/USDT pair may slide towards the channel support line.
On the contrary, if the bulls push the price above the channel, it will suggest that the correction phase may be over. The 50-day SMA ($0.000012) may also offer strong resistance, but if this level is breached, the SHIB/USDT pair could rise 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.