After a recovery on March 16, the United States equities markets are again down on March 17. Investors remain concerned about the vulnerability of the
After a recovery on March 16, the United States equities markets are again down on March 17. Investors remain concerned about the vulnerability of the banks in the U.S. and Europe. A silver lining for cryptocurrency investors is that Bitcoin (BTC) has remained decoupled with the equities markets and has risen to its highest level since Jan. 12.
Galaxy Digital founder and CEO Michael Novogratz said in an interview with CNBC that the US and the globe will face a credit crunch as banks lend less to rebuild capital. He said investors should be long on Bitcoin and crypto because these are the times for which it was created.
Quantitative tightening seems to be giving way to a period of quantitative easing. The banks have already borrowed $150 billion from the Federal Reserve, which is more than the amount borrowed during the 2008 financial crisis.
Analysts pointed out that the Fed has added $300 billion to its balance sheet in a week, second only to the $500 billion pumped after the March 2020 crash. The QE in 2020 triggered a rally in Bitcoin that took it from about $4,000 to $69,000.
Will history repeat itself? Could Bitcoin and altcoins sustain the higher levels? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin bulls purchased the dip to $24,000 on March 15 and pushed the price above the strong overhead resistance of $25,250 on March 17. This completes an inverse head and shoulders (H&S) pattern.
There is no major resistance between the current level and $32,000, hence the bulls may find it easy to cover this distance in a short time. The bears may mount a strong defense at $32,000 but if bulls overcome it, the BTC/USDT pair could extend its uptrend to the pattern target of $35,024.
The rising 20-day exponential moving average ($23,298) and the relative strength index (RSI) near the overbought zone indicate that bulls are in command.
If bears want to regain control, they will have to quickly reverse direction and sink the pair below the moving averages. Until then, the bulls are likely to view the dips as a buying opportunity.
Ether price analysis
Ether (ETH) rebounded off the moving averages on March 16, indicating that traders are buying on dips.
The bulls will try to push and sustain the price above the $1,743 to $1,780 resistance zone. If they succeed, the ETH/USDT pair could accelerate toward the psychologically important level of $2,000. This is the final hurdle above which the pair will signal the start of a potential uptrend.
The bears are likely to have other plans. They will try to halt the up-move in the overhead zone and pull the pair back below the moving averages. That could trap the aggressive bulls and the pair may then collapse to $1,461.
BNB price analysis
The long tail on BNB’s (BNB) March 15 candlestick shows that the bulls are buying the dips to the 20-day EMA ($302). This signals a change in sentiment from selling on rallies to buying on dips.
The relief rally picked up momentum on March 17 and skyrocketed above the overhead resistance at $318.
Buyers are trying to strengthen their position further by kicking the price above $338. If they do that, the negative H&S pattern will be invalidated. The BNB/USDT pair could first rally to $360 and later to $400.
On the downside, a break below the 20-day EMA will indicate that bears are back in the driver’s seat.
XRP price analysis
XRP (XRP) has been consolidating inside the tight range between the 50-day simple moving average ($0.38) and the support at $0.36.
Generally, a tight-range trading is followed by an increase in volatility. The bulls will try to catapult the price above the 50-day SMA. If they can pull it off, it will signal the start of a stronger recovery to $0.42. This level may again act as a formidable resistance but if crossed, the rally could reach $0.51.
This positive view will be invalidated in the near term if the price turns down and plummets below $0.36. The pair could then slump to the strong support zone between $0.32 and $0.30.
Cardano price analysis
Cardano (ADA) is stuck between the 50-day SMA ($0.36) and the strong support at $0.29. The bulls are trying to push the price above the 20-day EMA ($0.34).
If they manage to do that, the ADA/USDT pair could climb to the 50-day SMA. This level may attract sellers who will try to stall the recovery. If the price turns down sharply from this level, the range-bound action may continue for some more time.
Alternatively, if bulls drive the price above the 50-day SMA, the pair could rally to the neckline of the inverse H&S pattern. This is an important level to keep an eye on because a break and close above it may signal the start of a new uptrend.
Dogecoin price analysis
Dogecoin (DOGE)…
cointelegraph.com