Bitcoin climbed above $25,000. According to crypto analyst Rakesh Upadhyay, if the bulls turn this level to support during the next pullback, this will signal the start of a fresh rise to $32,000. So, will history repeat itself? Can altcoins like Bitcoin and MATIC sustain higher levels? The analyst lays out the top 10 cryptocurrencies to find out.
An overview of the cryptocurrency market
cryptocoin.com As you can follow, after the recovery on March 16, the US stock markets started to decline again on March 17. However, investors remain concerned about the fragility of banks in the US and Europe. A beacon of hope for crypto investors is Bitcoin’s departure from the equity markets and rising to its highest level since January 12.
Galaxy Digital founder and CEO Michael Novogratz said in an interview with CNBC that the US and the world will face a credit crisis as banks lend less to rebuild capital. He also noted that investors should stay on Bitcoin and crypto for a long time because that’s when it was created.
Daily cryptocurrency market performance / Source: Coin360Quantitative tightening (QT) seems to be giving way to the period of quantitative relaxation (QE). Banks have already borrowed $150 billion from the Federal Reserve, more than borrowed during the 2008 financial crisis. Analysts pointed out that the Fed added $300 billion to its balance sheet in a week, second only to the $500 billion pumped after the March 2020 crash. QE in 2020 triggered a rally in Bitcoin from around $4,000 to $69,000. Now it’s time for analysis…
BTC, ETH, BNB, XRP and ADA analysis
Bitcoin (BTC): The bulls bought the dip
BTC bulls bought the dip at $24,000 on March 15 and pushed the price above the strong overhead resistance of $25,250 on March 17. This complements an inverted head-and-shoulder (H&S) pattern.
There is no major resistance between the current level and $32,000. For this reason, bulls may find it easy to cover this distance in a short time. The bears can put up a strong defense at $32,000, but if the bulls break it, BTC could extend the uptrend to the pattern target of $35,024. The 20-day exponential moving average, or EMA, or EMA ($23,298) rising near the overbought zone and the relative strength index, or RSI, suggest that the bulls are in command. If the bears want to regain control, they will have to quickly reverse direction and drop the pair below the moving averages. Until then, the bulls are likely to see the dips as a buying opportunity.
Ethereum (ETH): Traders buy on dips
ETH rebounded from the moving averages on March 16, indicating that traders are buying on the dips.
The bulls will try to push the price above the $1,743-$1,780 resistance zone and sustain it. If successful, ETH could accelerate towards the psychologically significant $2,000 level. This is the final hurdle that ETH will signal the start of a potential uptrend. The bears may have other plans. They will try to stop the up move in the overhead zone and pull ETH below the moving averages. This could trap the aggressive bulls and ETH could drop to $1,461 later.
Binance Coin (BNB): Bulls buy lows
The long tail on the BNB March 15 candlestick indicates that the bulls are buying dips to the 20-day EMA ($302). This marks a shift in sentiment from selling on rallies to buying on dips.
The relief rally gained momentum on March 17 and catapulted the price above the overhead resistance of $318. Buyers are trying to further strengthen their position by pushing the price above $338. If they do, the negative H&S model will be invalid. BNB could rise to $360 and then to $400. On the downside, a break below the 20-day EMA will indicate the bears are back in the driver’s seat.
Ripple (XRP): There may be an increase in volatility
XRP is consolidating in the narrow gap between the 50-day simple moving average or SMA ($0.38) and the $0.36 support.
Generally, narrow range trading is followed by an increase in volatility. The bulls will try to push the price above the 50-day SMA. If they can achieve this, it will mark the start of a stronger recovery at $0.42. This level could act as a tough resistance again, but if exceeded, the rally could reach $0.51. This positive view will be invalidated in the near term if the price declines and dips below $0.36. XRP could then drop into the strong support zone between $0.32 and $0.30.
Cardano (ADA): Stuck between strong support
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 can achieve this, ADA could climb to the 50-day SMA. This level could attract sellers who will try to stop the recovery. If the price drops sharply from this level, the range-bound movement could continue for a while. Alternatively, if the bulls push the price above the 50-day SMA, ADA could move higher towards the neckline of the inverted H&S pattern. This is an important level to watch because a break and close above it could signal the start of a new uptrend.
DOGE, MATIC, SOL, DOT and SHIB analysis
Dogecoin (DOGE): Bulls buy on small dips
DOGE rebounded from the $0.07 level and reached the downtrend line. This shows that the bulls are buying on small dips.
A break and close above the downtrend line will be the first sign that the correction may be over. The 50-day SMA ($0.08) could act as a resistance, but it is likely to break. DOGE can then extend its rally to $0.09 and then $0.10. Sellers are expected to defend the $0.10-$0.11 zone with all their might. Because a break above this will open the doors for a possible rally to $0.16. On the downside, a drop below the $0.07 support will turn the advantage in favor of the bears.
Polygon (MATIC): Bulls try to turn $1.05 level to support
MATIC rose from $1.07 on March 15, which indicates that the bulls are attempting to turn the $1.05 level into support.
The 20-day EMA ($1.16) is flattening and the RSI is near the midpoint, indicating an equilibrium between supply and demand. If the bulls push the price above the 50-day SMA ($1.22), MATIC could gain momentum and move higher to $1.30. This level can act as a minor hurdle, but it is likely to be crossed. The next stop for MATIC could be $1.42. On the other hand, if the MATIC price drops sharply from the 50-day SMA, it will indicate that the bears continue to sell in the rallies. MATIC could then oscillate between the 50-day SMA and $1.05 for a while.
Solana (SOL): Bulls don’t expect deep bearish to buy
The SOL rebounded at $18.70 on March 16, suggesting that the bulls are not expecting a deeper drop to buy.
The relief rally has reached the moving averages that are likely to offer strong resistance. If the price drops and dips below $18.70, it indicates that the SOL could remain range-bound between the 50-day SMA ($22.21) and $15.28 for a while. It will signal a potential trend reversal for the SOL after the bulls push the price above the downtrend line. This could start a rally towards $27.12.
Polkadot (DOT): Bears fail to maintain lower levels
The DOT broke below the 20-day EMA ($6.09) on March 15, but the bears failed to sustain lower levels. Buyers bought the dip and pushed the price above the 20-day EMA on March 16.
The bulls are trying to leverage their advantage by pushing the price above the overhead resistance at the 50-day SMA ($6.41). If this level scales, the DOT could rise to the 61.8% Fibonacci retracement level to $6.85. Presumably, this level will again act as a strong resistance. However, if the bulls turn the moving averages to support during the next pullback, it will indicate that the bulls are buying from the dips. This will increase the likelihood that DOT will generate an inverse H&S pattern. On the contrary, if the price turns down from the 50-day SMA once again and breaks below the 20-day EMA, it indicates several-day range-bound action.
Shiba Inu (SHIB): Bulls trying to reverse
SHIB recovered from the $0.0000010 support on March 16, which indicates that the bulls are attempting a reversal.
The recovery is facing resistance in the region between the 20-day EMA ($0.000011) and the downtrend line of the descending channel. The bears will again try to push the price below the $0.000010 support. If they are successful, SHIB may slide to the support line of the channel. On the contrary, if the bulls push the price above the channel, it will suggest that the correction phase may have ended. The 50-day SMA ($0.000012) could also offer stiff resistance. However, if this level is cleared, SHIB could climb to $0.000014 and then to $0.000016.
