Signs of easing inflation could push Bitcoin and select altcoins above their respective overhead resistance
Signs of easing inflation could push Bitcoin and select altcoins above their respective overhead resistance levels in the short-term.
Data from the Personal Consumption Expenditures (PCE) index showed an uptick of 0.3% in February, which lower than the 0.5% increase seen in January. Economists had projected a rise of 0.4% and the PCE data suggests that inflation is gradually showing a decreasing trend.
Risky assets rallied in response to the data and some analysts expect the Federal Reserve to start cutting rates by the end of the year, The FedWatch Tool shows a 33% probability of a 50 basis point cut by December 2023.
The cryptocurrency space is trying to come out of a long bear phase. This has improved sentiment and analysts are focusing on the long-term prospects of cryptocurrencies and blockchain technology.
Citi said in its “Money, Tokens and Games” March report that the blockchain-based tokenization of real-world assets could soar to between $4 to $5 trillion by 2030. Although the lack of legal and regulatory framework, and the skepticism of industry players may pose a challenge in the short term, the investment bank believes they will be overcome eventually.
Could Bitcoin (BTC) and select altcoins extend their up-move or is it time for the rally to stall? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
The bulls propelled Bitcoin above $29,000 on March 30 but the long wick on the candlestick shows that the bears have not yet given up and are selling on rallies.
When a level proves too difficult to cross, usually the price retraces back before making the next attempt. In this case, if the price again fails to cross $29,000, the BTC/USDT pair may pullback to the 20-day exponential moving average ($26,707). A strong bounce off this level will suggest that the sentiment remains positive and traders are buying on dips. That will increase the possibility of a break above $29,185.
If buyers succeed in their endeavor, the pair may soar to the $30,000 to $32,500 resistance zone. The first sign of weakness will be a fall below the 20-day EMA. Such a move will suggest that the bulls may be booking profits. That may result in a rest of the breakout level of $25,250. Below this level, the pair could slide to the 200-day simple moving average ($20,342).
Ether price analysis
Ether (ETH) is facing resistance near $1,857, indicating that bears are trying to protect this level with all their might. A positive sign in favor of the bulls is that they have not ceded ground to the bears.
The rising 20-day EMA ($1,736) and the RSI in the positive territory enhance the prospects of a break above $1,857. If that happens, the ETH/USDT pair may resume its up-move and reach the overhead resistance zone between $2,000 and $2,200.
Contrary to this assumption, if the price trips below the 20-day EMA, it will suggest that the bulls have given up. That could pull the price to the strong support at $1,680. A break below this level could indicate that bears have seized control. The pair may then descend to $1,600 and thereafter to $1,461.
BNB price analysis
BNB’s (BNB) relief rally is facing selling in the zone between the 20-day EMA ($316) and the downtrend line but the bulls are hanging on.
The 20-day EMA has flattened out and the RSI is near the midpoint, indicating that the selling pressure may be reducing. The aggressive bears may get trapped if the price rises above the downtrend line. That may result in a short squeeze, which could propel the price to the overhead resistance zone between $338 and $346.
Conversely, if the price turns down from the downtrend line and plummets below $305, it will suggest that bears are back in the driver’s seat. The BNB/USDT pair may then drop to the 200-day SMA ($290).
XRP price analysis
The long wick on XRP’s (XRP) March 29 candlestick shows that the bears are aggressively defending the resistance at $0.56.
The XRP/USDT pair formed an inside-day candlestick pattern on March 30, indicating uncertainty among the bulls and the bears. If the price slips below $0.52, the pair may retest the breakout level of $0.49. This is an important level to keep an eye on because a break below it could extend the correction to the 20-day EMA ($0.45).
Another possibility is that the price turns up from the current level and breaks above the $0.56 to $0.59 resistance zone. If that happens, the pair may skyrocket to $0.65 and later to $0.80.
Cardano price analysis
After hesitating for two days, the bulls have pushed Cardano (ADA) above the minor resistance at $0.39. The price has reached the vital resistance at the neckline of the inverse head and shoulders (H&S) pattern.
cointelegraph.com