BTC, ETH, BNB, XRP, LUNA, ADA, SOL, AVAX, DOT, DOGE

Bitcoin (BTC) and select altcoins broke above their immediate resistance levels but are struggling to hold the higher levels, indicating that bears are not ready to give up.

It is speculated that the spike in Bitcoin’s price on March 22 may have been caused by reports that Terra sent USD 125 million to Binance on March 21.

This could be the start of the proposed $3 billion worth of Bitcoin that the company plans to buy. Terra made another identical trade on March 23, which could boost sentiment in the near term.

Daily cryptocurrency market performance. Source: Coin360

While this news may cause a short-term spike, it is unlikely to change the main trend. Bitcoin remains highly correlated with the S&P 500, which rose sharply between March 15 and 22. Crypto traders will likely be reading signals from the performance of the S&P 500 in the coming days.

Could bulls clear the overhead hurdle and start an upward move in Bitcoin and select altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

BTC/USDT

Bitcoin broke above the immediate resistance at $42,594 on March 22, but the bulls were unable to sustain the higher levels. This suggests that bears continue to aggressively defend this level.

BTC/USDT daily chart. Source: TradingView

One small positive is that the bulls did not lose much ground on March 23 due to the overhead resistance. This suggests that traders are not closing their positions at the resistance as they expect the upward movement to continue.

If buyers push and hold the price above USD 42,594, the BTC/USDT pair could gain momentum and climb towards USD 45,400 where the bears may once again have a strong defense.

This positive image becomes invalid if the price falls and moves below the moving averages. If that happens, the pair could stay in the $37,000 to $42,594 range for a few more days.

ETH/USDT

Ether (ETH) broke above the psychological level at $3,000 and reached the symmetrical triangle resistance line on March 22. The long wick on the candlestick indicates that bears are defending the resistance line.

ETH/USDT daily chart. Source: TradingView

The bears will now try to pull the price towards the moving averages. If the price bounces off this support, it increases the likelihood of a break above the triangle. If that happens, the ETH/USDT pair could start another upward move. The pair could first move as high as $3,500 and then march towards the pattern target at $3,907.

This bullish picture will be negated in the near term if the price moves below the moving averages. Such a move indicates that the couple can spend a little more time in the triangle.

BNB/USDT

BNB bounced off the 20-day exponential moving average (EMA) ($389) on March 21, suggesting buying on dips. The bulls pushed the price above the $407 overhead resistance on March 22, but failed to sustain the higher levels.

BNB/USDT daily chart. Source: TradingView

The 20-day EMA is starting to rise gradually and the RSI is in positive territory, indicating an advantage for buyers. The bulls will try to push and hold the price above the $407 to $410 resistance zone. If they succeed, the BNB/USDT pair could attempt a rally towards USD 445.

Conversely, if the price falls from its current level, the pair could fall towards the moving averages. This is an important support to watch out for as if the bears pull the price below the moving averages, the pair could drop towards USD 350.

On the other hand, if the price bounces off the moving averages, it suggests that bulls are accumulating at lower levels. The buyers will then try again to push the pair to $445.

XRP/USDT

Ripple (XRP) broke and closed above the downward trendline on March 21, but the bulls are finding it difficult to continue the upward movement. This indicates that demand is drying up at higher levels.

XRP/USDT daily chart. Source: TradingView

The price has fallen and the bears are trying to pull the XRP/USDT pair below the downward trendline. If they manage to do that, the pair could plummet towards the moving averages.

A strong rally in the moving averages will indicate that traders continue to buy at lower levels. The bulls will then try again to push the price towards $0.91.

On the contrary, if the price moves below the 50-day simple moving average (SMA) ($0.76), it suggests that the break above the downward trendline may have been a bull trap. The pair could then fall as low as $0.68.

LUNA/USDT

Terra’s LUNA token rose above the overhead resistance at $96 on March 21, but the bulls were unable to sustain the higher levels. This suggests that bears are aggressively defending this level.

LUNA/USDT daily chart. Source: TradingView

A positive sign, however, is that the bulls have not yet lost much ground due to the resistance. This indicates that traders are not closing their positions soon as they expect a rise.

If the price breaks and closes above USD 96, the LUNA/USDT pair could rise towards its all-time high at USD 105. A break and close above this level could signal the resumption of the uptrend.

This positive picture will be negated in the near term if the price falls and moves below the 20-day EMA ($88). The pair could then drop to $82 and later to $75.

ADA/USDT

Cardano (ADA) broke above the 50-day SMA ($0.94) on March 22 and hit the $1 overhead resistance. Strong buys on March 23 pushed the price above the overhead resistance, indicating that the downtrend may be ending.

ADA/USDT daily chart. Source: TradingView

If bulls keep the price above $1, the ADA/USDT pair could pick up momentum further. The pair could then move as high as $1.26. Bears could pose a big challenge at this level, but if bulls overcome this resistance, the pair could extend its rally to $1.60.

Contrary to this assumption, if the price falls and dips below $1, it suggests bears continue to sell aggressively at higher levels. The pair could then fall towards the 20-day EMA ($0.89), which is an important level to watch.

A strong rally from this level could indicate that bulls are piling up on dips, while a break below the 20-day EMA suggests that the break above $1 may have been a bull trap.

SOL/USDT

Solana (SOL) has been wedged between the moving averages for the past few days. The bears are selling near the 50-day SMA ($93), while the bulls are buying near the 20-day EMA ($88).

SOL/USDT daily chart. Source: TradingView

This narrow-bandwidth trade is unlikely to continue for long. If bulls propel and maintain the price above the 50-day SMA, the bearish triangle pattern will be invalidated. That could encourage buying and the SOL/USDT pair could rise towards the $122 overhead resistance.

Contrary to this assumption, if the price falls and moves below the 20-day EMA, the bears will try to pull the price towards the strong support zone at $81 to $77. A break below this zone will complete the bearish setup, which indicates the resumption of the downward trend.

Related: Internet Computer Eyes Move 50% As ICP Enters Falling Wedge Breakout Area

AVAX/USDT

Avalanche (AVAX) has been holding up above the bearish channel for the past few days, but the bulls have been unable to resume its upward movement by pushing the price above $93. This indicates selling at higher levels.

AVAX/USDT daily chart. Source: TradingView

If the price moves below the moving averages, the bears may pull the AVAX/USDT pair towards the uptrendline. Such movement indicates that the fracture above the channel may have been a bulltrap.

Conversely, if the price bounces back from current levels, it suggests that bulls will continue to buy on dips. The bulls will then try again to break the hurdle at $93 and push the pair towards the psychological level of $100. A break and close above this level could signal the start of a new uptrend.

DOT/USDT

Polkadot (DOT) bounced off the moving averages and closed above the $19 to $20 resistance zone on March 22. This suggests the bulls are attempting a comeback.

DOT/USDT daily chart. Source: TradingView

The DOT/USDT pair could now rise towards the USD 23 overhead resistance, where the bears could build a strong defense. If the price drops from USD 23, the pair could fall towards the moving averages and consolidate within a range for a few more days.

If bulls push and hold the price above USD 23, the pair could gain momentum and move towards USD 30. Alternatively, if the price falls and moves below the moving averages, the pair may slide towards the strong support at $16.

DOGE/USDT

Dogecoin (DOGE) has been hovering near the 20-day EMA ($0.12) for the past few days, indicating an uphill battle between the bulls and the bears.

DOGE/USDT daily chart. Source: TradingView

The flat 20-day EMA and the RSI near the midpoint suggest a supply/demand balance. This equilibrium could tip in favor of buyers if they can push and hold the price above the 50-day SMA ($0.13). Such a move will signal a likely trend change and pave the way for a potential rally to $0.17.

Conversely, if the price falls from the current level or the 50-day SMA and moves below the March 20 intraday low, the DOGE/USDT pair could fall to the strong support at $0.10.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risks. You should do your own research when making a decision.

Market data is provided by HitBTC exchange.

Leave a Reply

Your email address will not be published.