Bitcoin (BTC) and most of the major altcoins are attempting to start the new week on a positive note by bouncing off their respective support levels.
Goldman Sachs became one of the first major banks in the United States to complete an over the counter “cash-settled cryptocurrency options trading” with the trading unit of Michael Novogratz’s Galaxy Digital. This could encourage other major banks to consider offering OTC transactions for cryptocurrencies.
It is not just a select few countries that are showing an increase in crypto adoption. A report by cryptocurrency exchange KuCoin shows that crypto transactions in Africa increased by almost 2,670% in 2022. Nuro, the founder of Bitcoin Senegal, believes that Africa can continue its more than thousand percent growth rate in the next few years.
Analyst Willy Woo speculates that bitcoin’s four-year price cycle based on the block subsidy halving may not serve as a predictive tool in the future because price action is likely to be determined by supply and demand.
Can bitcoin and altcoins climb above their upper resistance levels? Let’s analyze the chart of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin is facing stiff resistance at $42,594, which shows that the bears continue to sell higher. The bears are trying to pull the price below the moving average while the bulls are trying to keep the price above it.
Both moving averages have flattened out and the Relative Strength Index (RSI) is near the midpoint, suggesting a balance between supply and demand. If the price moves below the moving averages, the BTC/USDT pair could drop to $37,000. Such a move suggests that the pair may spend some more time in the range of $42,594 to $37,000.
Conversely, if the price rebounds strongly from the moving average, it would indicate that sentiment has turned positive and traders are buying on a minor downside. This could increase chances of a break above $42,594. If the price sustains above this resistance level, the pair may rebound in the upper zone between the resistance line of $45,400 and the ascending channel.
ETH/USDT
Ether (ETH) broke below the overhead resistance of $3,000 on March 19, but the bears were unable to pull the price below the moving average on March 20. This suggests that the bulls are buying on a minor downside.
The bulls will attempt to push the price above $3,000 and challenge the resistance line of the symmetrical triangle. This is an important level to watch as a break and a close above it would indicate a possible change in trend. The ETH/USDT pair can then rally towards $3,500.
Alternatively, if the price breaks below the resistance line of $3,000 or the triangle and falls below the moving average, this would suggest that the pair may extend its stay inside the triangle for a few more days.
BNB/USDT
Binance Coin (BNB) broke and closed above the 50-day simple moving average ($390) on March 17th, but the bulls could not build on this advantage. The long wick of the March 19 candlestick indicates a selloff at higher levels.
The BNB/USDT pair fell and fell on the 20-day exponential moving average ($386) on March 20. A minor positive is that the bulls have not allowed the price to drop below this level. This indicates that the bulls are buying on the downside.
If the price rises and breaks above $407, the up-move could continue and the pair could rally towards $425. This level can act as a barrier but if it is crossed, the next stop could be $445.
Conversely, if the price declines and breaks below the 20-day EMA, it would indicate a lack of demand at higher levels. Then the pair can slide towards $350.
XRP/USDT
XRP rebounded from the 20-day EMA ($0.77) on 18 March and reached the downtrend line on 19 March. The bears defended this level again but could not pull the price below the 20-day EMA. This suggests strong buying on the downside.
Both the moving averages are starting to move up and the RSI is in positive territory, indicating that the path of least resistance is on an upside.
If the bulls push the price above the downtrend line and maintain it, further buying could occur and the XRP/USDT pair could rally to $0.91. If this level is also conquered, the next stop could be the psychological barrier at $1.
The bears will need to pull in and hold the price below the 50-day SMA ($0.75) in order to gain the upper hand.
Luna/USDT
Terra’s LUNA token bounced off the 20-day EMA ($86) on March 18, indicating that sentiment remains positive and traders are buying on the downside.
Buyers pushed the price into a tight overhead resistance at $96, where the bears are forming a strong hedge.
If the bulls cross this hurdle, the LUNA/USDT pair may retest the all-time high of $105. The bulls will need to push the price above this level and maintain the signal to signal the resumption of the uptrend. The 20-day EMA and RSI rising in the positive zone are indicating gains for buyers.
Contrary to this assumption, many short-term traders may close their positions if the price drops and breaks below the 20-day EMA. The pair can then decline to the strong support level of $70.
SOL/USDT
Solana (SOL) attempted to break the downtrend line on March 19 but the bears had other plans. He defended the level and pulled the price down to the 20-day EMA ($87) on March 20.
Buyers have successfully defended the 20-day EMA and will again attempt to push the price above the downtrend line.
If they manage to do so, the descending triangle pattern will become invalid. Failure of a negative setup is a positive sign as it traps many bears who may sell in anticipation of a breakout. The SOL/USDT pair may then attempt a reversal to $106 and later to $120.
Conversely, if the price declines and breaks below the 20-day EMA, it would suggest strong selling at higher levels. Then the pair can gradually decline towards the support level of $81.
ADA/USDT
Cardano (ADA) rose above the 20-day EMA ($0.86) on March 19 and the bulls halted attempts to pull the price back below the level on March 20. This suggests that buyers are attempting to initiate a relief rally. ,
The bulls will now try to push the price higher and hold above the overhead resistance at $1. If they succeed, it would suggest a possible change in trend. The ADA/USDT pair could then rally to the next upper resistance level at $1.26.
Alternatively, if the price breaks below the current level or upper resistance and breaks below the 20-day EMA, it would suggest that the pair could remain range-bound between $1 and $0.74 for a few more days.
Connected: Bitcoin could ‘easily see $30K’ with stocks set to drop 30% in 2022 – Analyst
AVAX/USDT
Avalanche (AVAX) closed above the descending channel on 18 March and the bulls successfully defended the breakout level on 20 and 21 March.
The 20-day EMA ($78) has turned positive and the RSI has jumped into the positive zone, which is indicating gains for buyers.
If the bulls drive and sustain the price above $93, the AVAX/USDT pair is likely to rally towards the psychological level of $100. The bears may try to halt the rally at this level, but if the bulls do not leave much ground, the chances of a breakout above it increase.
This bullish view will be rejected if the price moves below the current level and moves below the moving average.
dot / usdt
Polkadot (DOT) broke and closed above the overhead resistance of $19 on March 19, but the bulls could not build on this advantage. The bears took advantage of this opportunity and pulled the price back below $19 on March 20.
One slight positive is that the bulls did not allow the price to drop below the moving average. The flat moving average and the RSI just above the midpoint suggest that the bears may be losing their grip.
If the price rises from the current levels, the bulls will attempt to clear the upper barrier at $20. If they manage to do so, the DOT/USDT pair could rally to $23, where the bears could once again present a strong challenge.
If the price breaks out and remains below the 20-day EMA ($18), this positive outlook will be invalidated in the near term. This could open the doors for a possible drop to $16.
doge/usdt
Dogecoin (DOGE) broke and closed above the 20-day EMA ($0.12) on March 19, but the bulls could not sustain the higher levels. The bears pulled the price below the 20-day EMA on March 20.
The 20-day EMA is flattening out and the RSI is just below the midpoint, which indicates that selling pressure may be waning. If buyers push and sustain the price above the 20-day EMA, the DOGE/USDT pair could rally to the 50-day SMA ($0.13). The bulls will have to overcome this hurdle to open the door for a potential rally to $0.17.
Alternatively, if the price drops below the current level and closes below the intraday low formed on March 20, the pair could fall to strong support at $0.10.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should do your own research when making a decision.
Market data is provided by hitBTC transaction.
