Bitcoin (BTC) and select altcoins broke their immediate resistance levels but struggled to maintain higher levels, indicating that the bears are not ready to give up.
It has been speculated that the bitcoin price jump on 22 March may be due to reports that Terra sent 125 million USDT to Binance on 21 March.
This could be the start of a proposed $3 billion worth of bitcoin that the firm plans to buy. Terra has made another similar transaction on March 23, which could boost sentiment in the near term.
While this news may provide a short-term spike, it is unlikely to reverse the main trend. Bitcoin is strongly correlated with the S&P 500, having risen sharply between March 15 and 22. Crypto traders are likely to take cues from the performance of the S&P 500 over the next few days.
Can the bulls overcome the overhead hurdle and initiate an up-move in bitcoin and opt for altcoins? Let’s analyze the chart of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin broke the immediate resistance at $42,594 on March 22, but the bulls could not sustain the higher levels. This suggests that the bears continue to defend this level aggressively.
One slight positive is that the bulls did not leave the ground much above the upper resistance today. This suggests that traders are not closing their positions near the resistance as they expect the upward move to continue.
If buyers continue and sustain the price above $42,594, the BTC/USDT pair could pick up momentum and rally towards $45,400, where the bears could once again create a strong defense.
This positive outlook will be invalidated if the price moves down and breaks below the moving average. If this happens, the pair may extend its stay within the range of $37,000 to $42,594 for a few more days.
ETH/USDT
Ether (ETH) broke above the psychological level of $3,000 and traded near the resistance line of the symmetrical triangle on March 22. A long wick on the candlestick indicates that the bears are defending the resistance line.
The bears will now try to pull the price down to the moving average. If the price bounces off this support, it will increase the chances of a breakout above the triangle. If this happens, the ETH/USDT pair could start a new up-move. The pair can first rebound to $3,500 and then move towards the pattern target at $3,907.
This bullish view will be rejected in the short term if the price breaks below the moving average. Such a move would indicate that the pair may spend some more time inside the triangle.
BNB/USDT
Binance Coin (BNB) bounced off the 20-day exponential moving average ($389) on March 21, indicating buying on the dips. The bulls pushed the price above the upper resistance at $407 on March 22 but could not sustain the higher levels.
The 20-day EMA has started to move up slowly and the RSI is in positive territory, which is indicating gains for buyers. The bulls will try to push the price higher and sustain above the $407 to $410 resistance area. If they manage to do so, the BNB/USDT pair could attempt a rally to $445.
Conversely, if the price breaks below the current level, the pair could decline to the moving average. This is an important support to watch as if the bears pull the price below the moving averages, the pair could drop to $350.
On the other hand, if the price reverses from the moving average, it would indicate that the bulls are consolidating at lower levels. Then buyers will again try to push the pair to $445.
XRP/USDT
XRP broke and closed above the downtrend line on March 21, but the bulls are finding it difficult to continue the up-move. This indicates that demand dries up at higher levels.
The price turned lower and the bears are attempting to pull the XRP/USDT pair below the declining trend line. If they manage to do this, the pair may fall to the moving average.
A strong rebound from the moving average suggests that traders will continue to buy at lower levels. The bulls will again try to push the price towards $0.91.
Conversely, if the price breaks below the 50-day simple moving average ($0.76), it would suggest that a break above the downtrend line could be a bull trap. Then the pair can drop to $0.68.
Luna/USDT
Terra’s LUNA coin rose above the upper resistance at $96 on March 21, but the bulls could not sustain the higher levels. This suggests that the bears are defending this level aggressively.
However, a positive sign is that the bulls have not left the ground much above resistance. This indicates that traders are not closing their positions in a hurry as they expect further upside.
If the price breaks out and closes above $96, the LUNA/USDT pair is likely to rally to the all-time high of $105. A break and close above this level could signal a resumption of the uptrend.
This positive outlook will be invalidated in the near term if the price drops and breaks below the 20-day EMA ($88). The pair can fall again to $82 and later to $75.
ADA/USDT
Cardano (ADA) broke above the 50-day SMA ($0.94) on March 22 and reached upper resistance at $1. Today’s strong buying has pushed the price above the upper resistance, indicating that the downtrend may be ending.
If the bulls maintain the price above $1, the ADA/USDT pair could pick up further momentum. After this the pair can rebound up to $1.26. The bears could present a strong challenge at this level, but if the bulls cross this resistance, the pair could extend its rally to $1.60.
Contrary to this assumption, if the price declines and falls below $1, it would suggest that the bears will continue to sell aggressively at higher levels. The pair can then drop to the 20-day EMA ($0.89), which is an important level to watch.
A strong rally from this level could indicate that the bulls are consolidating on the dips while a break below the 20-day EMA would indicate that a break above $1 could be a bull trap.
SOL/USDT
Solana (SOL) has been in the middle of the moving average 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).
This tight range trading is unlikely to continue for long. If the bulls push the price above the 50-day SMA and sustain, the descending triangle pattern will be invalidated. This could attract a buy and the SOL/USDT pair could rally against the upper resistance level of $122.
Contrary to this sentiment, if the price declines and breaks below the 20-day SMA, the bears will try to pull the price towards the strong support area of $81 to $77. A break below this area would complete the bearish setup, indicating a resumption of the downtrend.
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AVAX/USDT
Avalanche (AVAX) has remained above the descending channel for the past few days, but the bulls have not been able to resume the upward move by pushing the price above $93. This indicates selling at higher levels.
If the price breaks below the moving average, the bears may pull the AVAX/USDT pair to the uptrend line. Such a move would indicate that a break above the channel could be a bull trap.
Conversely, if the price rebounds from the current levels, it would indicate that the bulls will continue to buy on the downside. The bulls will then again attempt to clear the hurdle at $93 and push the pair towards the psychological level of $100. A close above and above this level could signal the start of a new uptrend.
dot / usdt
Polkadot (DOT) bounced off the moving average and closed above the overhead resistance area at $19 to $20 on March 22. This shows that the bulls are attempting a comeback.
The DOT/USDT pair is now likely to rally above the upper resistance level at $23, where the bears can create a strong defense. If the price breaks below $23, the pair may decline to the moving averages and consolidate in a range for a few more days.
If the bulls push and sustain the price above $23, the pair could pick up momentum and rally towards $30. Alternatively, if the price turns down and breaks below the moving averages, the pair could slide towards strong support at $16.
doge/usdt
Dogecoin (DOGE) has been hovering near the 20-day EMA ($0.12) for the past few days, indicating a tough fight between the bulls and the bears.
The 20-day EMA and the RSI near the midpoint suggest a balance between supply and demand. This balance could tilt in favor of buyers if they can push the price above the 50-day SMA ($0.13) and hold it. Such a move would indicate a possible change in trend and clear the way for a potential rally to $0.17.
Conversely, if the price declines from the current levels or the 50-day EMA and falls below the intraday low of March 20, the DOGE/USDT pair could decline to a strong support level of $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.
