The speculation regarding the U.S. Federal Reserve’s tightening cycle and recent geopolitical developments may have resulted in panic selling by short
The speculation regarding the U.S. Federal Reserve’s tightening cycle and recent geopolitical developments may have resulted in panic selling by short-term traders. Analysis from Glassnode suggested that traders who had purchased Bitcoin (BTC) near the November 2021 high liquidated their positions in the past two and half months. This supply was absorbed by high conviction investors, which resulted in a redistribution from weak hands to strong hands.
The crypto market, due to its resilience, continues to attract erstwhile naysayers to its fold. The latest popular figure to have a change of heart is Ken Griffin, founder of American multinational hedge fund and financial services company Citadel. In an interview with Bloomberg, Griffin said that Citadel will “engage in making markets in cryptocurrencies” over the next few months.
Voyager Digital co-founder and CEO Stephen Ehrlich told Cointelegraph that the firm’s recent quarter was its “best ever, so I certainly feel it’s a great time to be in crypto.” Along with businesses, Ehrlich believes that crypto investors are likely to be rewarded in the long term.
Will the demand remain intact at higher levels and could the recovery extend further in the next few days? Let’s analyze the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin’s recovery has reached the overhead resistance zone between $45,821 and the resistance line of the ascending channel. The bears are expected to defend the zone with vigor.
The 20-day exponential moving average ($40,797) has started to turn up and the relative strength index (RSI) is in the positive territory, indicating advantage to buyers. If the bulls arrest the next dip at the 20-day EMA, it will increase the possibility of a break above the channel. If that happens, the BTC/USDT pair could rally to $52,088.
Contrary to this assumption, if the price turns down and breaks below the moving averages, it will suggest that the pair could remain stuck inside the channel for a few more days. The pair may then drop toward the support line of the channel.
ETH/USDT
Ether (ETH) broke and closed above the 50-day simple moving average ($2,860) on Feb. 28, indicating that bulls are attempting a comeback. The moving averages are close to completing a bullish crossover and the RSI is in the positive territory, indicating that the path of least resistance is to the upside.
If the price rebounds off the 20-day EMA ($2,824), it will suggest that the bulls are buying on every minor dip. The ETH/USDT pair could then rise to the resistance line of the symmetrical triangle pattern. The bears are likely to defend this level aggressively but if bulls surpass this barrier, the pair could start a new uptrend.
Alternatively, if the price slips below the 20-day EMA, the pair could drop to the support line of the triangle. A break and close below the triangle could suggest the resumption of the downtrend. The price action inside the triangle is likely to remain volatile.
BNB/USDT
Binance Coin (BNB) broke above the 50-day SMA ($406) on March 1 but the long wick on the candlestick indicates selling at higher levels. The bulls again pushed the price above the 50-day SMA today but are struggling to sustain the higher levels.
This indicates that the bears are trying to defend the 50-day SMA. If the price turns down from the current level but does not break below the 20-day EMA ($391), it will suggest that bulls are buying on dips.
That will improve the prospects of a break and close above the 50-day SMA. If that happens, the BNB/USDT pair could rally to the overhead resistance at $445. This positive view will invalidate in the short term if the price breaks and sustains below the 20-day EMA.
XRP/USDT
Ripple (XRP) rose to the downtrend line on Feb. 28 where the bears are mounting a strong defense. The price has turned down from the downtrend line and could now drop to the 50-day SMA ($0.72).
The flattish moving averages and the RSI near the midpoint suggest a balance between supply and demand. This balance will shift in favor of the buyers if the XRP/USDT pair rises and sustains above the downtrend line. The pair could then rally to $0.85 and later to $0.91.
Conversely, if the price slips below the 50-day SMA, it will suggest that higher levels continue to witness strong selling. The pair could then drop to $0.68 and if this level also cracks, the next stop may be the Feb. 24 intraday low at $0.62.
LUNA/USDT
The bulls have been trying to sustain Terra’s LUNA token above the overhead resistance at $94 for the past two days but the bears have not allowed that to happen.
The moving averages have completed a bullish crossover, indicating advantage to buyers. However, the RSI in the…
cointelegraph.com