Bitcoin (BTC) has been sustaining above the $25,000 level for the past few days, increasing the likelihood that the bear market may have ended. Generally, in the initial stages of a new bull phase, several analysts remain in a state of disbelief and expect the resumption of the downtrend.
Another group of traders continue to wait for the dip to buy at lower levels but the price does not oblige. Finally, the traders sitting on the fence throw in the towel and buy and that is when the correction is likely to happen. Such a pullback shakes out the weak hands and transfers the asset into the hands of investors with conviction.
When a new trend is getting established, certain events tend to cause a knee-jerk reaction but it is unlikely that the trend is reversed. In Bitcoin’s case too, a drop to trap the aggressive bears is possible but there is a low possibility that the bear market will resume.
What are the important levels to watch out for on the upside and the downside in Bitcoin and altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
After a two-day consolidation, Bitcoin has risen above the $28,500 overhead resistance on March 22. This suggests that the bulls have asserted their dominance.
The upsloping 20-day exponential moving average ($25,180) and the relative strength index (RSI) in the overbought zone indicate the path of least resistance is to the upside. A break above $28,500 will clear the path for a possible rally to the $30,000 to $32,500 resistance zone.
In case of a correction, the first support to watch on the downside is $25,250. If the price rebounds off this level, it will suggest that the neckline of the head and shoulders (H&S) pattern has flipped into support.
The problem will arise if the $25,250 level cracks because that may trigger the stops of several bulls. The BTC/USDT pair could then nosedive to the 200-day simple moving average ($20,020).
Ether price analysis
Ether’s (ETH) bounce off $1,717 suggests that the bulls are purchasing the minor dips and not waiting for a deeper correction to buy. However, buyers failed to overcome the obstacle at $1,842, indicating that bears are protecting this level with all their might.
Usually, a tight consolidation near a local top suggests that the bulls are not closing their positions in a hurry as they anticipate another leg higher. The rising 20-day EMA ($1,679) and the RSI in the positive territory indicate that bulls have a slight edge.
If buyers thrust the price above $1,842, the ETH/USDT pair may jump to $2,000 and later attempt a rally to $2,200. This bullish view will invalidate in the near term if the price turns down and plunges below the 20-day EMA. The pair may then fall to $1,600.
BNB price analysis
The failure of the bulls to push BNB (BNB) above $346 in the past few days shows that the bears are fiercely guarding the level. That may have resulted in profit-booking by the short-term bulls, which has pulled the price toward the 20-day EMA ($314).
If the price rebounds off the 20-day EMA, it will suggest that the sentiment has turned positive and traders are viewing the dips as a buying opportunity. The bulls will then make one more attempt to clear the hurdle at $346. If they succeed, the BNB/USDT pair could soar toward $400.
On the other hand, if the price plummets below the 20-day EMA, it will suggest the start of a deeper correction toward the 200-day SMA ($288). The pair may then oscillate between $280 and $346 for a few days.
XRP price analysis
XRP (XRP) skyrocketed above the 200-day SMA ($0.40) and the stiff overhead resistance of $0.43 on March 21, indicating a buying stampede.
After the sharp rally, traders seem to be booking profits near $0.50. That has resulted in a pullback to the breakout level of $0.43. If bulls flip this level into support, the XRP/USDT pair may again try to rise above $0.50. If that happens, the pair could soar to $0.56. A break and close above this level will indicate the start of a potential new uptrend.
Conversely, if the price continues lower and breaks below the $0.43 support, it will suggest that traders are rushing to the exit. That could trap the aggressive bulls and sink the pair to the 200-day SMA.
Cardano price analysis
Cardano (ADA) surged above the moving averages on March 21, indicating that lower levels are attracting buyers.
However, the bears have not yet given up and are trying to halt the recovery at $0.39 as seen from the long wick on the March 21 and 22 candlesticks. The onus is on the bulls to flip the moving averages into support. If they manage to do that, the ADA/USDT pair could rally to the neckline of the developing H&S pattern.
Contrarily, if the price turns down and slips below…
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