Bitcoin and altcoins could see profit taking and risk-off positioning as the weekend approaches and investor
Bitcoin and altcoins could see profit taking and risk-off positioning as the weekend approaches and investor concerns about Deutsche Bank arise.
The European stock markets fell on March 24 on renewed fears that the banking crisis could rear its ugly head once again. The latest selling was triggered after Deutsche Bank’s credit default swaps, which offer protection to the buyer against specific risks, soared on March 23 without any known catalyst. That pulled down the shares of the German lender by 11%.
European Central Bank President Christine Lagarde attempted to calm the markets, saying that the euro area baking sector was strong due to the regulatory reforms introduced after the Global Financial Crisis. That could be one of the reasons for the solid recovery in the United States equities markets from the intraday lows.
Although the banking crisis has been positive for Bitcoin’s (BTC) price, the trend may pause if the contagion spreads. During times of panic, traders sell assets to curtail risk. At that time, if Bitcoin does not break below the $25,000 to $20,000 support zone, it will suggest that the bear phase is over.
Could Bitcoin and most major altcoins witness a minor correction? What are the important support levels to keep an eye on? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin formed an inside-day candlestick pattern on March 23, indicating uncertainty among buyers and sellers. The bulls want to extend the up-move but the bears are in no mood to relent. That has kept the price inside a small range.
Generally, a tight consolidation near a local high is a sign that traders are not booking profits in a hurry because they anticipate the uptrend to continue. The rising 20-day exponential moving average ($25,595) and the relative strength index (RSI) near the overbought zone indicate that bulls are in command.
If the price rebounds off $26,500 with strength, the bulls will again try to start the next leg of the rally. That could propel the price to $30,000 and then to $32,500.
The $25,250 support remains the key level because a break and close below it may indicate a bull trap. The BTC/USDT pair could then collapse toward the 200-day simple moving average ($20,095).
Ether price analysis
Ether (ETH) rose above the overhead resistance of $1,842 on March 23 but the bulls could not sustain the breakout as seen from the long wick on the candlestick.
The bears are trying to strengthen their position by pulling the price toward the 20-day EMA ($1,693). This remains the key level to watch out for on the downside.
If the price rebounds off this level, it will suggest that traders continue to view the dips to the 20-day EMA as a buying opportunity. The bulls will then again try to clear the overhead barrier and catapult the price to $2,000.
This positive view will be negated in the near term if the price plunges below the 20-day EMA. That could tug the price to $1,600 and then to $1,461.
BNB price analysis
BNB (BNB) bounced off the 20-day EMA ($316) on March 23 but the bulls are struggling to sustain the relief rally. This shows that the bears are pouncing on every minor recovery.
Sellers will try to tug the price below the 20-day EMA. If they do that, the BNB/USDT pair could drop to $300 and then to the 200-day SMA ($289). The bulls are expected to fiercely defend the zone between the 200-day SMA and $265.
Alternatively, if the price rebounds off the 20-day EMA, it will suggest that the sentiment remains positive and traders are buying the dips. The pair could pick up momentum above $346 and the next stop on the upside is $400.
XRP price analysis
XRP (XRP) formed consecutive inside-day candlestick patterns on March 22 and 23, indicating indecision among buyers and sellers.
A minor positive for the bulls is that they have successfully defended the 200-day SMA ($0.40) for the past three days. This suggests that the 200-day SMA could now act as the new floor.
Sometimes, after a sharp move, the price tends to consolidate for a few days before resuming a trending move. In this case, buyers will have to thrust the price above $0.51 to signal the start of the next leg of the uptrend. On the downside, a break below the moving averages may result in a retest of $0.36.
Cardano price analysis
The bulls have been sustaining Cardano (ADA) above the moving averages since March 21 but have failed to reach the neckline of the inverse head and shoulders (H&S) pattern. This suggests selling by the bears near $0.39.
The 20-day EMA ($0.34) is trying to turn up and the RSI is just above the midpoint, indicating a slight advantage to the bulls. If the price turns up from…
cointelegraph.com