Bitcoin continues to trade near $28,000, signaling a strong demand from investors even as the legacy banking system struggles with unprecedented volatility.
The takeover of the ailing Credit Suisse bank by UBS boosted European equity markets on March 20 but not everyone is happy with the deal. According to Swiss regulator FINMA, the value of additional tier one (AT1) bonds will be written to zero. This move will wipe out $17 billion worth of investments for AT1 bond investors.
Among the turmoil in the global banking sector, Bitcoin (BTC) has shone brightly. That is because traders seem to have shifted their focus to the alternative available to the legacy banking system. Another thing working in favor of Bitcoin is that it has decoupled from the United States equities markets and is behaving as an uncorrelated asset class.
Bitcoin’s solid rally in the past few days has boosted trader sentiment. The Crypto Fear and Greed Index has soared into the greed zone with a score of 66/100. The next trigger for the markets is the rate hike decision by the Federal Reserve on March 22.
Could Bitcoin reach $30,000 and pull altcoins higher, or is a correction likely in the near term? Let’s study the charts to find out.
S&P 500 index price analysis
The S&P 500 index (SPX) rallied from 3,808 on March 13 and rose above the 200-day simple moving average (3,935) on March 16 but the bulls could not clear the hurdle at the 20-day exponential moving average (3,962).
A positive sign is that the bulls purchased the dip below the 200-day SMA and are again attempting to overcome the obstacle at the 20-day EMA. If they succeed, the index could rally to 4,100 and then to 4,200.
The bears are likely to have other plans. They will try to halt the recovery at the 20-day EMA and sink the price back toward the support zone between 3,800 and 3,764. If this zone gives way, the selling could intensify and the index may plummet toward 3,600.
U.S. dollar index price analysis
The U.S. dollar index (DXY) has been trading near the 20-day EMA (104) for the past few days, indicating indecision among the bulls and the bears.
If bears sustain the price below 103.44, the index may slip to the next support at 102.50. Buyers will try to defend this level but if they fail in their endeavor, the index could tumble to the vital support at 100.82.
Alternatively, if the price turns up and breaks above 105.10, it will clear the path for a possible rally to the 200-day SMA (106). The bulls may encounter strong selling in the resistance zone between the 200-day SMA and the 61.8% Fibonacci retracement level of 108.43.
Bitcoin price analysis
Bitcoin has been holding above the breakout level of $25,250 since March 17, which is a positive sign. After a one-day correction on March 18, the price continued its northward march on March 19, indicating that the bulls are in no mood to book profits.
The rising 20-day EMA ($24,463) and the relative strength index (RSI) near the overbought territory indicate that bulls remain in control. The next major resistance is in the zone between $30,000 to $32,500.
If the price turns down from the current level or the overhead resistance, the key level to watch out for is $25,250. If the price rebounds off this level with strength, it will suggest that bulls have flipped $25,250 into support. The level will thereafter act as a floor during future declines.
Ether price analysis
Buyers pushed Ether (ETH) above the $1,800 resistance on March 18 and 19 but could not sustain the higher levels. This shows that bears are trying to stall the recovery.
A minor positive in favor of the bulls is that they have not allowed the price to slide back below the $1,743 to $1,680 support zone. The rising 20-day EMA ($1,654) and the RSI above 61, suggest that the path of least resistance is to the upside.
If buyers propel and sustain the price above $1,850, the ETH/USDT pair may start its journey toward $2,000 and subsequently to $2,200.
This positive view will invalidate in the near term if the price turns down and plummets below the 20-day EMA. That may trap the aggressive bulls, resulting in long liquidations. The pair could then slump to $1,461.
BNB price analysis
BNB (BNB) formed an inside-day candlestick pattern on March 19 and 20, indicating indecision among the bulls and the bears.
The bears are mounting a strong defense above $340 but the bulls have not given up much ground. The upsloping 20-day EMA ($311) and the RSI near the overbought zone give a slight edge to the bulls. If buyers kick the price above $350, the BNB/USDT pair may rally to $400.
On the contrary, if the price breaks below $325, the pair could drop to $318. A strong rebound off this…
cointelegraph.com