Bitcoin (BTC) and several altcoins surprised with their newfound strength during the weekend. Bitcoin’s rally easily sliced through the $45,900 level,
Bitcoin (BTC) and several altcoins surprised with their newfound strength during the weekend. Bitcoin’s rally easily sliced through the $45,900 level, which according to Glassnode was an area of resistance because several investors had purchased near that level when Bitcoin was declining after hitting its all-time high in November.
Bitcoin’s strength may have attracted buying in several altcoins, which are still languishing below their 52-week high. The rally in Bitcoin and the bottom fishing in altcoins has boosted investor sentiment, pushing the Crypto Fear and Greed Index into the “greed” territory.
Interestingly, the crypto markets have held a large part of their gains despite the tepid performance of the U.S. stock markets on March 28. This suggests that the crypto markets may be in the early stages of decoupling from the equity markets.
Could buyers sustain the momentum and clear the overhead resistance levels? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin hesitated on March 26 as seen from the inside-day candlestick. This indicated indecision among the bulls and the bears. This uncertainty resolved to the upside on March 27 as the bulls regrouped and propelled the price above the overhead resistance at $45,400.
The sharp rally of the past few days has pushed the relative strength index (RSI) into the overbought zone for the first time since October 2021. This suggests that the momentum favors the buyers.
The bears may attempt to stall the up-move at the resistance line of the ascending channel but if bulls overcome this barrier, the BTC/USDT pair could rally to the psychological level at $50,000 and later to $52,000.
If the price turns down from the resistance line, the buyers will try to flip $45,400 into support. If they succeed, it will suggest that the up-move may continue. The bears will have to pull and sustain the price below $45,400 to weaken the bullish momentum.
ETH/USDT
Ether (ETH) broke above the symmetrical triangle on March 25 but the bulls could not sustain the higher levels. However, the buyers did not cede ground to the bears and resumed their purchase on March 26.
The momentum picked up on March 27 and the ETH/USDT pair has reached $3,411 where the bulls may encounter a minor resistance. If bulls bulldoze their way through, the ETH/USDT pair could rally toward the psychological level at $4,000.
Alternatively, if the price turns down from $3,411, the pair could retest the breakout level from the triangle. If the price rebounds off this level, it will suggest strong buying on dips. The bulls will then again try to resume the up-move.
The bears will have to pull and sustain the price inside the triangle to suggest that the bullish momentum may have weakened.
BNB/USDT
Binance Coin (BNB) continued its northward march and has reached the overhead resistance at $445. The bears are likely to defend this level with vigor.
The rising 20-day exponential moving average ($402) and the RSI near the overbought zone indicate that bulls are in control. If buyers thrust the price above $445, the BNB/USDT pair could rally toward the psychological level at $500. This level could again act as a strong resistance.
If the price turns down from $500 but does not break below $445, it will suggest that the bulls have flipped the level into support. That will increase the likelihood of a break above the overhead resistance.
Contrary to this assumption, if the price turns down from $445, the pair could drop to the 20-day EMA.
XRP/USDT
XRP turned up on March 26, indicating that bulls are buying on minor dips. The buyers pushed the price above the strong resistance at $0.86 but are facing resistance near $0.91.
Both moving averages are sloping up and the RSI is in the positive zone. If buyers do not allow the price to slide below $0.86, the prospects of a break above $0.91 increase. If that happens, the XRP/USDT pair could rally to the psychological level at $1.
This positive view will be invalidated if the price turns down from the current level or the overhead resistance at $0.91 and plummets below the moving averages. Such a move could pull the price to the strong support at $0.70.
ADA/USDT
Cardano (ADA) has continued its recovery and the price has reached the overhead resistance at $1.26 where the bears are likely to mount a strong defense.
The rising 20-day EMA ($1) and the RSI in the overbought zone suggest that bulls are in control. If the price turns down from overhead resistance but the bulls do not give up much ground, it will increase the possibility of a break above $1.26.
If that happens, the ADA/USDT pair could rally to $1.60 and then march higher toward $1.80. This bullish view will invalidate if the price turns…
cointelegraph.com