Bitcoin (BTC) led a sharp sell-off in the cryptocurrency markets on March 9 as the woes at Silvergate Bank and Silicon Valley Bank dented investor sentiment.
In addition, crypto-specific news of a suit filed by New York Attorney General Letitia James against cryptocurrency exchange KuCoin for selling securities and commodities without registration increased uncertainty about the future of crypto sector regulation.
The selling momentum continued on March 10 and pulled Bitcoin below the $20,000 mark. Several other cryptocurrencies have also broken below their important support levels.
But a minor positive in favor of the bulls is that February’s jobs report was a mixed bag. Although nonfarm payrolls rose 311,000 for the month, above estimates of an increase of 225,000, the average earnings rose less than anticipated. That reduced expectations of a 50 basis point rate hike in the Federal Reserve’s March meeting from 68% on March 9 to 42% on March 10.
What are the important levels on the upside that will signal a sustained recovery in Bitcoin and altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin sliced through the $21,480 support on March 9 with ease. The selling continued on March 10 and the price broke below the crucial support at $20,000.
The fall of the past few days has sent the relative strength index (RSI) into the oversold zone. This suggests that the selling may have been overdone in the near term and a recovery may be possible.
During a sharp fall, markets usually tend to overshoot on the downside. The same may have happened here. The bulls will try to start a rebound off the current levels but may face strong resistance at higher levels.
The bears will try to flip the $21,480 level into resistance. If that happens, the BTC/USDT pair may turn down and retest the $20,000 support. If this level breaks down, the next stop could be $18,000.
ETH/USDT
Ether (ETH) witnessed aggressive selling on March 9, which pulled the price below the strong support at $1,461.
The ETH/USDT pair could next drop to $1,352 where the bulls are likely to mount a strong defense. If the price turns up from $1,352, the recovery may hit a brick wall at $1,461. If the price turns down from this level, it will increase the possibility of a fall to $1,200.
If bulls want to prevent the decline, they will have to quickly push the price back above $1,461. Such a move will suggest strong buying at lower levels. The pair may then reach the 20-day exponential moving average ($1,565).
BNB/USDT
BNB (BNB) turned down from the 20-day EMA ($294) on March 8 and broke below the solid support of $280. This move completed a bearish head and shoulders (H&S) pattern.
Typically, the price returns to retest the breakdown level from the pattern. If the price turns down from $280, it will suggest that bears have flipped the level into resistance. That may send the BNB/USDT pair tumbling toward $245 and thereafter to the pattern target of $222.
Contrarily, if bulls drive the price above $280, the pair could reach the 20-day EMA. This level may again attract strong selling but if bulls absorb the supply and do not allow the pair to slip below $280, it will suggest the start of a recovery.
XRP/USDT
XRP (XRP) broke above the descending channel pattern on March 8 but the long wick on the day’s candlestick shows selling at higher levels.
The bears pulled the price back into the channel on March 9, which may have trapped the aggressive longs. The XRP/USDT pair has reached the solid support at $0.36. If this level gives way, the pair may reach the support line of the channel near $0.33.
Contrary to this assumption, if the price rebounds off $0.36, the bulls will make one more attempt to push the pair above the channel. If they succeed, the pair may rally to the overhead resistance at $0.43.
ADA/USDT
Cardano (ADA) broke below the $0.32 support on March 8 and the bears thwarted attempts by the bulls to push the price back above the level on March 9.
The selling resumed on March 10 and bears pulled the price below the 61.8% Fibonacci retracement level of $0.30. This opens up the possibility of a further fall to the 78.6% Fibonacci retracement level of $0.27.
Buyers are currently trying to push the price back above $0.32. If they manage to do that, it will suggest solid demand at lower levels. The ADA/USDT pair may then rise to the 20-day EMA ($0.34). The bulls will have to clear this hurdle to indicate that they are back in the game.
DOGE/USDT
Dogecoin (DOGE) easily broke below the strong support near $0.07 which had not been breached convincingly since October 2022. This shows that bears are in complete control.
The RSI has dipped into…
cointelegraph.com