Rumors surrounding the US Federal Reserve’s tightening cycle and recent geopolitical developments could prompt short-term traders to panic selling. Analysis of Glassnode suggest that Traders who bought Bitcoin (BTC) near the November 2021 highs have liquidated their positions over the past two and a half months. This offering is met with great confidence by investors, leading to a reallocation from the weak to the strong.
The overwhelming resilience of the crypto market has further changed the views of previously staunch opponents. The latest celebrity to change his mind is Ken Griffin, founder of American multinational hedge fund and financial services firm Citadel. In one interview Speaking to Bloomberg, Griffin said that Citadel will “enter the crypto market” in the next few months.
Stephen Ehrlich, co-founder and CEO of Voyager Digital said that “this is a great time to get into the crypto market.” Ehrlich believes that patient investors will be rewarded in the long run.
Does demand remain intact at higher levels and can the recovery extend even further in the coming days? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin recovery has reached the resistance area between $45,821 and the ascending channel resistance line. The bears are expected to defend this zone aggressively.
BTC/USDT daily chart | Source: TradingView
The 20-day EMA ($40,797) has started to turn up and the Relative Strength Index (RSI) is in positive territory, which suggests an advantage for the buyers. If the bulls catch the next drop at the 20-day EMA, the possibility of a breakout of the channel will increase. If that happens, the BTC/USDT pair can surge to $52,088.
If, contrary to this assumption, the price turns down and falls below the moving averages, it will indicate that the pair will be stuck in the channel for a few more days. After that, the price may fall towards the channel’s support line.
Ether (ETH) broke out and closed above the 50-day SMA ($2,860) on Feb. 28, showing that the bulls are attempting a return. The nearby moving averages are creating a bullish cross and the RSI is in positive territory, suggesting that the path of least resistance is up.
ETH/USDT daily chart | Source: TradingView
If the price recovers from the 20-day EMA ($2.824), it will show that the bulls are buying any slight dips. After that, the ETH/USDT pair can rally up to the resistance line of the symmetrical triangle pattern. The bears are likely to defend this level aggressively, but if the bulls surpass this level, the pair could start a new uptrend.
Alternatively, if the price breaks below the 20-day EMA, the pair can drop to the triangle support line. A break and close below the triangle could indicate a continuation of the downtrend. Price action within the triangle is likely to remain volatile.
BNB broke above the 50-day SMA ($406) on March 1, but the long wick on the candlestick shows that it is selling at higher levels. The bulls pushed the price back above the 50-day SMA on March 2 but is struggling to sustain higher levels.
Daily BNB/USDT Chart | Source: TradingView
This shows that the bears are trying to defend the 50-day SMA. If the price turns down from the current levels but fails to break below the 20-day EMA ($391), it will show that the bulls are buying on the downside.
This should improve the prospects for a breakout and close above the 50-day SMA. If that happens, the BNB/USDT pair can rally to the $445 resistance. This positive view will be invalidated in the near term if the price breaks out and sustains below the 20-day EMA.
Ripple (XRP) surged to the downtrend line on Feb. 28 where the bears are mounting solid defenses. The price has turned down from the downtrend line and it can now drop to the 50-day SMA ($0.72).
XRP/USDT daily chart | Source: TradingView
The flat moving averages and the RSI near the middle show a balance between supply and demand. This equilibrium will favor buyers if the XRP/USDT pair surges and stays above the downtrend line. After that, the pair can climb to $0.85 and higher to $0.91.
Conversely, if the price breaks below the 50-day SMA, it will indicate that higher highs will continue to see heavy selling. After that, the pair can drop to $0.68 and if that level is also broken, the next stop could be the February 24 low at $0.62.
The bulls have been trying to sustain Terra (LUNA) above the $94 resistance level for the past two days but the bears have not let it.
Daily LUNA/USDT Chart | Source: TradingView
The moving averages have created a bullish cross, which suggests an advantage for the buyers. However, the RSI is already in the overbought territory, suggesting that the rally may have been overdone in the near term. The inability to push and sustain the price above $94 could attract profit-taking from short-term traders.
This move could pull the price towards $80. If the price recovers from this level, it will show that the sentiment is still positive and traders are buying on the downside. The bulls will then make another attempt to clear the overhead barrier at $94. If successful, the LUNA/USDT pair can retest the all-time high of $103.
Alternatively, a break and close below $80 could indicate a deeper correction towards the 20-day EMA ($68).
Solana (SOL) surpassed the 20-day EMA ($95) on Feb 28 and organized a successful retest on Mar 1. The bulls are currently attempting to push the price above the 50-day SMA ($106). If successful, the rally can extend to $122.
Daily SOL/USDT chart | Source: TradingView
The 20-day EMA is flat and the RSI has surged into the positive territory, showing that the bulls are making a comeback. If the bulls push and sustain the price above $122, the SOL/USDT pair will complete a double bottom. After that, the pair can rally to $163.
This optimistic view will be invalidated in the near term if the price turns down and falls below the 20-day EMA. Such a move would suggest that demand is drying up at higher levels. That could keep the pair range-bound between $81 and $122 for a few more days.
Cardano (ADA) has managed a breakout of $1, which is an important level for bears to defend because a break and close above it would indicate that the market has rejected lower levels.
Daily ADA/USDT Chart | Source: TradingView
The flat moving averages and the RSI just below the middle suggest that the bears may lose their footing. If the bulls push and sustain the price above $1, the ADA/USDT pair can rally to the channel resistance line.
A breakout and close above the channel indicates a trend reversal. After that, the pair can rally to the $1.60 resistance level. This optimistic view will be invalidated if the price turns down sharply from current levels. In that case, the pair can retest the $0.82 support.
Avalanche (AVAX) broke out of the moving averages on February 28th and hit the downtrendline of the descending channel on March 1st. The bears are attempting to defend this level as they have done three times before.
AVAX/USDT daily chart | Source: TradingView
If the price turns down from current levels but fails to break below the moving averages, it indicates that sentiment may have switched from selling up to buying down.
The bulls will then make another move to push and sustain the price above the channel. If successful, it will signal a trend reversal. After that, the AVAX/USDT pair can rally to $100.
Conversely, if the price breaks through and falls below the moving averages, it shows that bears continue to sell heavily. After that, the pair can drop to $64.
Polkadot (DOT) broke out and closed above the 20-day EMA ($18) on Feb. 28, but the bulls have yet to clear the overhead barrier at the 50-day SMA ($20). This shows that the bears continue to sell at higher levels.
DOT/USDT daily chart | Source: TradingView
The 20-day EMA has flattened out and the RSI is just above the midpoint, suggesting some short-term range-bound action. If the buyers push the price above the 50-day SMA, the DOT/USDT pair can rally to $23.
Contrary to this assumption, if the price turns down from the current levels and breaks below the 20-day EMA, the pair may retest the strong support at $16-$14. The bears need to pull the price below the zone, to continue the downtrend.
Dogecoin (DOGE) bounced sharply from the $0.12 support on Feb. 28, showing that the bulls are actively defending this level.
Daily DOGE/USDT chart | Source: TradingView
The recovery rally is meeting resistance at the 20-day EMA ($0.13), which shows that the bears are not yet giving up and will continue to sell on the rally.
If the price diverges from the moving averages, the DOGE/USDT pair can drop to $0.12. This is a key level for the bulls to defend as a break below it can pull the pair to the psychological support at $0.10.
Conversely, if the price breaks the moving averages, the pair can rally to the overhead resistance at $0.17. The uptrend will intensify if this level is conquered.
You can see the coin prices here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions
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