Bitcoin (BTC), and many major altcoins, are trying to start the week on a positive note. They bounce off their respective support levels.
Goldman Sachs was the first American bank to conduct an over-the counter “cash-settled crypto options trade” with Galaxy Digital’s trading unit. This could encourage other banks to offer OTC transactions for cryptocurrency.
Not only a few countries are seeing growth in crypto adoption. KuCoin reports that cryptocurrency transactions in Africa rose by approximately 2,670% between 2022 and 2022 according to a KuCoin report. Nourou, the founder of Bitcoin Senegal, believes that Africa can continue to grow at a rate of 1,000 percent in the coming years.
Everyday cryptocurrency market performance. Source: Coin360
Analyst Willy Woo suggested that Bitcoin’s 4-year price cycle, which is based on block subsidy halving (which was based on Bitcoin’s price movement over four years), may not be able to predict the future because the price action will likely be determined by supply or demand.
Are Bitcoin and other altcoins able to surpass their overhead resistance levels. Let’s look at the charts for the top 10 cryptocurrencies to see if they can.
Bitcoin is currently facing strong resistance at $42,594, which indicates that bears are continuing to sell at higher levels. While the bulls try to maintain the price above the moving averages, the bears are trying to lower the price.
Daily chart of BTC/USDT Source: TradingView
Both moving averages have risen and the relative strength indicator (RSI), is close to the midpoint. This suggests a balance between demand and supply. The BTC/USDT pair may drop to $37,000 if the price falls below the moving averages. This will indicate that the pair could continue to trade within the $42,594-$37,000 range.
If the price bounces off the moving averages with strength it will indicate that sentiment is turning positive and traders are buying small dips. This could increase the chances of a break above $42,594. The pair may rally to the overhead zone of $45,400 and the resistance line in the ascending channel if the price holds above this resistance.
The overhead resistance of $3,000 was broken by Ether (ETH), but the bears couldn’t pull the price below the moving Averages on March 20. This indicates that bulls are buying at minor dips.
Daily chart of ETH/USDT Source: TradingView
Bulls will push the price higher than $3,000 to challenge the resistance line in the symmetrical triangle. This level is important to monitor as a break or close above it could signal a change in trend. The ETH/USDT currency pair could rally to $3,000.
Alternativly, if the price drops below $3,000 or the resistance line in the triangle, and falls below the moving averages it could indicate that the pair might extend its stay within the triangle for a few days.
Binance Coin (BNB), broke and closed above its 50-day simple moving Average ($390) March 17, but the bulls couldn’t build on this advantage. The March 19 candlestick’s long wick indicates that sellers are selling at higher levels.
Daily chart BNB/USDT TradingView
On March 20, the BNB/USDT exchange rate fell to $386 below its 20-day exponential moving mean ($386). The bulls have not allowed prices to fall below this level, which is a minor plus. This shows that bulls are buying dips.
The pair could rally to $425 if the price rises above $407 Although this level could act as a block, if it is crossed, $445 could become the next stop.
Contrarily, a price decline and a break below the 20-day EMA will indicate a lack in demand at higher levels. This could lead to the pair sliding towards $350.
XRP bounced from the 20-day EMA ($0.77) March 18, and reached the downtrendline on March 19. Although the bears defended the level, they could not lower the price below the 20 day EMA. This indicates that dips are a strong market for buying.
Daily chart of XRP/USDT Source: TradingView
Both moving averages are starting to rise and the RSI has moved into the positive territory. This indicates that the path to the upside is the most difficult.
Bulls pushing and maintaining the price above the downtrendline could lead to further buying and the XRP/USDT pairing may rise to $0.91. The psychological barrier at $1 could also be overcome if this level is reached.
To gain the upper hand, the bears must pull the price down below the 50-day SMA ($0.75).
Terra’s LUNA token bounced from the 20-day EMA ($86), on March 18, indicating that sentiment remains positive, and traders are buying dips.
Daily chart of LUNA/USDT Source: TradingView
The price has risen to $96 above the overhead resistance, where the buyers are attempting to push it.
The LUNA/USDT pair may retest the $105 all-time high if bulls can overcome this obstacle. To signal the return of the uptrend, bulls will need to push the price higher than this level. Buyers will benefit from the rising 20-day EMA, and positive RSI.
This assumption is incorrect. Short-term traders could close their positions if the price falls below the 20-day EMA. The pair could drop to $70, which is a strong support.
Solana (SOL), attempted to break through the downtrend line on February 19, but the bears had different plans. They defended the level, and the price fell to the 20-day EMA ($87), on March 20.
Daily chart of SOL/USDT Source: TradingView
The 20-day EMA was successfully defended by the buyers and they will attempt to push the price higher than the downtrend line.
The descending triangle pattern will be invalidated if they do so. A negative setup failing is a good sign because it traps bears who might have sold in anticipation. The SOL/USDT pairing could attempt a rally to $106 or later to $120.
However, if the price drops below the 20-day EMA it could signal strong selling at higher levels. The support level at $81 could be reached gradually.
Cardano (ADA), rose above the 20 day EMA ($0.86) March 19, and the bulls resisted attempts by bears to bring the price below March 20. This indicates that buyers are trying to launch a relief rally.
Daily chart ADA/USDT Source: TradingView
Bulls will attempt to push the price higher than $1. If they succeed, it could signal a change in the trend. The ADA/USDT pairing could rally to $1.26 as the overhead resistance.
Alternativly, if the price falls below the overhead resistance or current level, and breaks below the 20 day EMA, it could indicate that the pair will remain range-bound between $1.74 and $0.74 for a few days.
Related: Bitcoin could easily see $30K with stocks due to 30% drawdown by 2022 — analyst
Avalanche (AVAX), closed above the descending channel March 18, and bulls successfully defended breakout level March 20-21.
Daily chart of AVAX/USDT Source: TradingView
The 20-day EMA ($78), has increased and the RSI is now in the positive territory, which indicates buyers are in the lead.
The psychological level of $100 could be reached if bulls continue to drive the price above $93. Although bears might try to stop the rally at this level, if bulls don’t give up much ground, there is a greater chance of a break above that level.
If the price falls below the moving averages and the current level, this bullish outlook will be negated.
Polkadot, (DOT), broke above $19 overhead resistance on March 19, but the bulls couldn’t capitalize on this advantage. This opportunity was taken advantage of by the bears who brought the price down to $19 on March 20,
Daily chart of DOT/USDT Source: TradingView
The bulls have not allowed prices to fall below the moving averages, which is a minor plus. The bears could be losing their grip on the market with the flattish moving averages, and the RSI just below the midpoint.
The bulls will try to overcome the $20 overhead barrier if the price rises above the current level. If they succeed, the DOT/USDT pairing could rally to $23, where bears might again pose a challenge.
If the price falls below the 20-day EMA ($18), this positive outlook will be invalidated in the short-term. This could lead to a drop of $16.
Dogecoin (DOGE), which broke above the 20-day EMA ($0.12) March 19, but the bulls couldn’t sustain higher levels, was unable to maintain the higher levels. On March 20, the bears brought the price below the 20-day EMA.
Daily chart of DOGE/USDT Source: TradingView
The 20-day EMA has been flattening and the RSI is at the midpoint. This indicates that selling pressure may be decreasing. The DOGE/USDT pair can rally to the $50 SMA ($0.13) if buyers push the price higher than the 20-day EMA. To open the door to a possible rally of $0.17, bulls must clear this hurdle.
Alternativly, if the price falls below the intraday low on March 20, it could fall to $0.10.
Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.
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I am a technology and gaming writer by profession. I love NFT’s and play to earn gaming such as Axie Infinity. I love writing about anything on the blockchain, especially gaming and entertainment. I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.