Bitcoin’s (BTC) rally is taking a breather near the 200-day simple moving average (SMA) and that has resulted in what is either a minor pullback or co
Bitcoin’s (BTC) rally is taking a breather near the 200-day simple moving average (SMA) and that has resulted in what is either a minor pullback or consolidation in BTC and select altcoins.
In the last few days, Terraform Labs has been on a Bitcoin buying spree. The wallet address speculated to be that of Terra, has received $139 million worth of Bitcoin on March 30, taking its total to about $1.5 billion in BTC.
With Terra breathing down its neck, MicroStrategy seems to have taken up the challenge. The business intelligence firm’s subsidiary MacroStrategy has secured a $205 million loan from Silvergate, which will be used to purchase Bitcoin, cover general corporate expenses and pay the necessary fees and interest on the loan.
The buying interest is not limited to the two companies. CoinShares data showed that institutional investors pumped in $193 million into digital asset investment products last week, the largest inflow since early December 2021.
With institutional investors buying in large quantities, could Bitcoin and the major altcoins break above their overhead resistance levels? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin rose to the 200-day SMA ($48,288) on March 28 but the bulls could not push the price above it. The buyers again tried to clear the overhead hurdle on March 29 but failed.
The bears will now try to pull the price to the immediate support at $45,400. If the price rebounds off this support, the bulls will again attempt to thrust the BTC/USDT pair above the 200-day SMA. If they succeed, the pair could start its journey to $52,000.
The rising 20-day exponential moving average ($43,531) and the relative strength index (RSI) near the overbought zone indicate that bulls are in control.
This positive view will invalidate if the price turns down and plummets below the 20-day EMA. If that happens, the pair could extend its stay inside the ascending channel for a few more days.
ETH/USDT
Ether (ETH) broke and closed above the overhead resistance at $3,411 on March 29 but the bulls could not clear the obstacle at the 200-day SMA ($3,488). This indicates that bears have not yet given up and are attempting to stall the recovery at the 200-day SMA.
If the price sustains below $3,411, the bears will try to pull the ETH/USDT pair to the 20-day EMA ($3,042). A strong rebound off this level will suggest that the sentiment has turned positive and traders are buying on dips.
The bulls will then again try to propel the price above the 200-day SMA. If they succeed, the pair could rally toward $4,000.
Contrary to this assumption, if the price breaks below the 20-day EMA, it will suggest that the traders may be rushing to the exit. That could pull the pair down to the 50-day SMA ($2,853).
BNB/USDT
Binance Coin’s (BNB) tight range trading between $425 and $445 has resolved to the upside, indicating that bulls have absorbed the supply and are trying to gain the upper hand.
The upsloping 20-day EMA ($409) and the RSI in the overbought territory indicate that bulls are in control. If they sustain the price above $445, the BNB/USDT pair could rise to the 200-day SMA ($467) and later to $500.
Conversely, if the price turns down and breaks below $425, the pair could drop to the 20-day EMA. This is an important level to keep an eye on because a break and close below it will suggest that the bullish momentum has weakened. The pair could then oscillate between $350 and $445 for a few more days.
XRP/USDT
Ripple (XRP) broke above the overhead resistance at $0.91 on March 28 but the bears did not allow the price to sustain the higher levels. This indicates that the bears are aggressively defending the zone between $0.91 and $1.
The bulls are attempting to sustain the price above $0.86. If they succeed, the XRP/USDT pair could again rise to $0.91. A break and close above this level could open the doors for a possible rally to the psychological level at $1.
Conversely, if the price sustains below $0.86, the bears will attempt to pull the pair below the moving averages. If they manage to do that, it will suggest that the bullish momentum has weakened. The pair could then drop to $0.70.
ADA/USDT
Cardano (ADA) is facing resistance at $1.26 as seen from the long wick on the candlestick on March 28 and 29. A minor positive is that the bulls have not given up much ground.
The upsloping 20-day EMA ($1) and the RSI in the overbought territory indicate that the path of least resistance is to the upside. If buyers propel and sustain the price above $1.26, the ADA/USDT pair could rise to the 200-day SMA ($1.51) and thereafter rally to $1.60.
Alternatively, if the price turns down from the current level and breaks below $1.15, the bears will…
cointelegraph.com