Concerning news from Silvergate Bank and FTX may have influenced investors’ decision to press the sell butto
Concerning news from Silvergate Bank and FTX may have influenced investors’ decision to press the sell button, but the potential for further downside could be limited.
Bitcoin (BTC) is leading the cryptocurrency markets lower and the matter is being exacerbated by Silvergate Banks’ ongoing issues. This week the cryptocurrency-focused bank said that it needed additional time to file its annual 10-K report and warned that it may not be able to operate for another 12 months. Reacting to this news, several cryptocurrency companies announced that they were reducing or canceling their partnerships with Silvergate Bank.
The uncertainty regarding the future of the bank and its overall impact on the cryptocurrency sector may have caused a knee-jerk reaction. However, if the contagion does not spread, the downside may be limited.
Another positive for the cryptocurrency markets is that the United States equities markets are attempting to start a recovery. This suggests that traders continue to add risk to their portfolios at lower levels. This risk-on sentiment may limit the downside in Bitcoin and select altcoins.
What are the important levels on the downside that may act as a support and start a recovery in Bitcoin and the major altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
The failure to rise above the $24,000 level may have tempted traders to book profits. The selling accelerated on March 3 and the bears pulled the price below the immediate support at $22,800.
The 20-day exponential moving average ($23,332) is still flat but the relative strength index (RSI) has plunged below 44, indicating that the short-term momentum has turned bearish. The next crucial support to watch on the downside is $21,480.
Buyers are expected to defend this level with all their might because a break and close below it could open the doors for a retest of the psychologically important level of $20,000.
Alternatively, if the price rebounds off $21,480, the bulls will try to clear the overhead hurdle at $22,800. If they do that, it will indicate that the BTC/USDT pair may remain stuck between $21,480 and $25,250 for a few more days.
ETH/USDT
Ether (ETH) once again turned down from the overhead resistance of $1,680 on March 2, indicating that bears are defending the level with vigor.
The traders seem to have sold aggressively on March 3, which broke the support at the 50-day SMA ($1,607). The ETH/USDT pair may next drop to the critical support at $1,461 where the buyers may try to arrest the pullback.
If the price rebounds off $1,461 with strength, it will suggest that the pair may stay inside a range for a few days. The bulls will be back in the game if they push and sustain the price above $1,680. On the contrary, if the price slips below $1,461, the correction could deepen to $1,352.
BNB/USDT
The symmetrical triangle pattern in BNB (BNB) resolved to the downside on March 3, indicating that the bears overpowered the bulls.
The BNB/USDT pair could plummet to the strong support at $280. This is an important level to keep an eye on because if it cracks, the pair will complete a bearish head and shoulders pattern. This negative setup has a target objective of $245.
If bears want to prevent the sharp decline, they will have to fiercely guard the $280 level. If the price rebounds off this level, the pair may oscillate between $280 and $318 for some more time. The pair could turn bullish above $338.
XRP/USDT
The bulls pushed XRP (XRP) to the 20-day EMA ($0.38) on March 1 but could not clear the overhead barrier. This suggests that the sentiment remains negative and traders are selling on rallies.
The bears turned the price down on March 2 and increased the selling pressure on March 3. This pulled the price below the strong support at $0.36. If the price sustains below this level, the decline may extend to the support line of the descending channel pattern.
If bulls want to gain the upper hand in the near term, they will have to push the price back above the resistance line of the channel. If they do that, the XRP/USDT pair may start an upward march to $0.43.
ADA/USDT
Cardano (ADA) tried to rebound off $0.34 on March 1 but the bears sold at higher levels and yanked the price below the support on March 3.
The long tail on the day’s candlestick shows that the bulls are trying to project the support at $0.32. Buyers will have to propel the price back above $0.34 if they want to strengthen their position. The ADA/USDT pair could then rise to the 20-day EMA ($0.37) where the bulls may face stiff resistance from the bears.
If the price turns down from the overhead resistance and dives below $0.32, it will…
cointelegraph.com