Bitcoin (BTC) has been volatile in recent days, but long-term investors seem to be using the current weakness to buy.
According to Whale Alert and CryptoQuant, approximately 30,000 BTC left Coinbase and was deposited into an unknown wallet. It is speculated that it is a genuine purchase and not an internal transaction.
While investors may be optimistic in the long term, the short-term picture remains questionable. Stack Funds said in their recent weekly research report that they expect “sideways trading and a possible dip” in the near term due to the rise in inflation and ambiguity over the conflict in Ukraine.
Although Bitcoin was volatile, gold-backed crypto assets delivered a strong performance in 2022, as investors eschewed risky assets and sought the protection of safe havens. This has boosted the market cap of gold-backed crypto tokens to over $1 billion.
Can Bitcoin and altcoins support the recovery or will bears reign supreme? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin rose above the moving averages on March 9, but quickly followed the rally on March 10. The bulls are again trying to push the price back above the moving averages on March 11. This indicates that bulls are buying on dips, while bears are selling on rallies.
Both moving averages flattened and the Relative Strength Index (RSI) is just below the midpoint, indicating a supply/demand balance.
This equilibrium could tip in favor of the buyers if they push and hold the price above $42,594. The BTC/USDT pair could then rise towards the above-ground zone between $45,000 and the rising channel resistance line.
Alternatively, if the price falls again against the moving averages, the bears will try to push the pair below the $37,000 immediate support. If this level collapses, the pair can challenge the channel’s support line. A break and close below this level increases the likelihood of a resumption of the downtrend.
Ether’s (ETH) rebound encountered solid resistance on March 9 at the 50-day simple moving average (SMA) ($2,751), indicating bears are unwilling to let go of their advantage easily. The price fell against the moving averages on March 10, but a small positive is that the bulls are trying to defend the support line of the symmetrical triangle.
If the price bounces off the support line, the bulls will again try to push and hold the price above the 50-day SMA. If they manage to do that, the ETH/USDT pair could rise towards the psychological level of $3,000 and then retest the triangle’s resistance line.
This is an important level for the bears to defend as a pause and a close above it signals a possible trend change. This setup has a pattern target of $4,311 on the upside.
Contrary to this assumption, if the price continues lower and breaks below the triangle support line, it could indicate a resumption of the downtrend. The pair could then fall as low as USD 2,159.
BNB rose above the 50-day SMA ($389) on March 9, but the bulls were unable to sustain the higher levels. The bears took advantage of this situation and pulled the price back below the moving averages on March 10.
If the price remains below the moving averages, the bears will try to pull the BNB/USDT pair towards the strong support at $350. This is an important level to watch as a break below could clear the way make up for a drop to $320.
Alternatively, if the price bounces back from current levels, buyers will again try to propel and hold the pair above the moving averages. If they do, the pair could begin its northward march towards USD 445.
Ripple (XRP) broke and closed above the downward trendline on March 9, but the bulls were unable to build on this strength. The bears pulled the price back below the downward trendline on March 10.
The bulls failed to allow the price to move below the 50-day SMA ($0.72) indicating strong demand at lower levels. This narrow-bandwidth trade is unlikely to continue for long.
If the price breaks and stays above $0.78, the XRP/USDT pair may gain momentum and climb towards the $0.91 overhead resistance. A breach above this level could pave the way for a rally towards the $1 psychological level.
This positive opinion becomes invalid if the price falls and falls below $0.69. That could turn the tables in favor of the bears.
Terra’s LUNA token soared to a new all-time high on March 9, but the long fuse on the day’s candlestick shows it has made gains at higher levels. The bulls tried again on March 10 to resume the uptrend, but the bears had other plans.
The failure to keep the price above $103 may have led to profit postings from the short-term traders. That has pushed the LUNA/USDT pair below the critical level at USD 94.
If the price stays below $94, the decline could extend to the 20-day EMA ($80). A break and close below this level suggests that bullish momentum may have weakened. The pair could then drop to $70.
Conversely, if the price bounces off the current level or the 20-day EMA, it indicates that sentiment remains positive and traders are buying on dips. The bulls will then try again to push the pair to a new all-time high and towards the target of $125.
Solana (SOL) was trading in a bearish triangle pattern, which is set to end at a break and close below the crucial support at USD 81. The bulls attempted to recover on March 9, but failed to push the price above the 20-day EMA ($89).
If the bears sink and keep the price below $81, sales may increase. The SOL/USDT pair could then resume its downtrend and dive towards the next support at USD 66.
The falling moving averages suggest the path of least resistance is down, but the positive divergence on the RSI indicates that sellers should watch out for a possible bear trap.
If the price moves back from the current level, the bulls will try again to push and hold the pair above the downward trendline. If they manage to do that, the pair could rise to $122.
Cardano’s (ADA) attempt to recover on March 9 encountered strong resistance during the 20-day EMA ($0.88). This suggests that sentiment remains negative and that traders are selling on every small rally.
The falling moving averages and the RSI in the negative territory suggest that the path of least resistance is down.
The bears will now try again to push the price below the strong USD 0.74 support and resume the downtrend. A close below $0.74 could open the doors for a further decline towards the next support at $0.68.
The bulls will have to push and hold the ADA/USDT pair above the $1 psychological level to suggest that the bears could lose their grip.
Related: Here’s How Traders Were Alerted To The Big Rallies Of RUNE, FUN’s, WAVES, And KNC Last Week
Avalanche (AVAX) failed to climb and hold above the moving averages on March 9. This suggests that bears are defending the moving averages, while the bulls are buying on dips towards the uptrend line.
In general, tight ranges result in sharp trend moves. If the bears sink and keep the price below the uptrend, the AVAX/USDT pair could begin to fall towards the key support at $51. It may not be a straight decline, as the bulls will attempt the fall in the zone between $64 and $61 to stop.
Conversely, if bulls push the price above the moving averages, the pair will try to rise above the downtrend line of the descending channel again. A pause and close above the channel could indicate that the downtrend may be ending.
After struggling to stay above the 20-day EMA ($17) on March 9-10, Polkadot (DOT) managed to break through resistance on March 11. The bulls are currently trying to push and hold the price above the 50-day SMA ($18).
If they succeed, it suggests that the downtrend could end. The DOT/USDT pair may rise towards the USD 23 overhead resistance next. A break and close above this resistance will signal a possible trend change.
Contrary to this assumption, if the price falls from current levels, the bears will try to push the price below the solid support of $16. If they manage to do that, the pair could retest the next big support for $14.
The Dogecoin (DOGE) relief rally on March 9 spiraled out of control during the 20-day EMA ($0.12). This suggests that the bears are not ready to give up and continue to sell near resistance levels.
The DOGE/USDT pair slipped below USD 0.12 on March 10, increasing the likelihood of a retest of the critical support at USD 0.10. This zone is likely to attract strong buying from the bulls. Buyers will have to push and hold the price above the 50-day SMA ($0.13) to signal that the downtrend could weaken.
Conversely, if bears drop the price below USD 0.10, the sale could accelerate and the pair could fall towards the next support at USD 0.06.
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 stock exchange.