Bitcoin and altcoins could see take profit and risk aversion positioning as the weekend approaches and investor concerns about Deutsche Bank emerge.
European stock markets fell on March 24 on renewed fears that the banking crisis could rear its ugly head once more. The last sale was motivated after Deutsche Bank’s credit default swaps, which offer buyer protection against specific risks, spiked on March 23 with no known catalyst. That sent shares of the German lender tumbling 11%.
The president of the European Central Bank, Christine Lagarde, tried to calm markets, saying the euro area baking sector was strong due to regulatory reforms introduced after the global financial crisis. That could be one of the reasons for the strong recovery in US equity markets from intraday lows.
Although the banking crisis has been positive for the Bitcoin (BTC) price, the trend may stop if the contagion spreads. In times of panic, traders sell assets to reduce risk. At that point, if Bitcoin does not fall below the $25,000 to $20,000 support zone, it will suggest that the bearish phase is over.
Could Bitcoin and most major altcoins see a minor correction? What are the important support levels to look out for? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis
Bitcoin formed an inside candlestick pattern on March 23, indicating uncertainty between buyers and sellers. The bulls want to extend the bullish move, but the bears are in no mood to budge. That has kept the price within a small range.
In general, a tight consolidation near a local high is a sign that traders are not taking profits quickly because they anticipate the uptrend to continue. The rising 20-day exponential moving average ($25,595) and the RSI near the overbought zone indicate that the bulls are in command.
If the price bounces hard off $26,500, the bulls will try again to start the next leg of the rally. That could push the price to $30,000 and then $32,500.
The $25,250 support remains the key level because a breakout and close below it can signal a bull trap. The BTC/USDT pair could break down towards the 200-day simple moving average ($20,095).
Ether Price Analysis
Ether (ETH) broke above the overhead resistance of $1842 on March 23, but the bulls could not hold the breakout as seen from the long wick of the candle.
The bears are trying to strengthen their position by pulling the price towards the 20-day EMA ($1,693). This remains the key level to watch on the downside.
If the price bounces off of this level, it will suggest that traders continue to view dips from the 20 day EMA as a buying opportunity. The bulls will once again try to break through the upper barrier and catapult the price to $2,000.
This positive view will be reversed in the short term if the price breaks below the 20 day EMA. That could take the price to $1,600 and then $1,461.
BNB Price Analysis
BNB (BNB) bounced off the 20-day EMA ($316) on March 23, but the bulls are struggling to hold the relief rally. This shows that the bears are pounced on every minor rally.
The sellers will try to pull the price below the 20 day EMA. If they do that, the BNB/USDT pair could drop to $300 and then 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 bounces off the 20 day EMA, it will suggest that sentiment remains positive and traders are buying dips. The pair could pick up momentum above $346 and the next bullish stop is $400.
XRP Price Analysis
XRP (XRP) formed consecutive intra-day candlestick patterns on March 22 and 23, indicating indecision between buyers and sellers.
One minor silver lining 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 bottom.
Sometimes after a sharp move, the price tends to consolidate for a few days before resuming a trending move. In this case, the buyers will have to push 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 can result in a retest of $0.36.
Cardano Price Analysis
The bulls have been holding 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 that the bears sell near $0.39.
The 20-day EMA ($0.34) is trying to turn higher and the RSI is just above the midpoint, which indicates a slight advantage for the bulls. If the price rises from the 20 day EMA, the probability of a rally towards the neckline increases. A break above the H&S pattern signals the start of a potential new upward move.
Conversely, if the price breaks below the 20 day EMA, it will suggest that the bears are trying to come back. A breakout and close below $0.30 can accelerate selling and push the price up to $0.24.
Dogecoin Price Analysis
The bulls have been trying to push Dogecoin (DOGE) above the 200-day SMA ($0.08), but the bears have not let their guard down.
Next, the bears will try to push the price to the strong support of $0.07. A strong bounce at this level will suggest that the DOGE/USDT pair may remain stuck between $0.07 and the 200-day SMA for a while longer.
A break and close above the 200-day SMA will be the first indication that the bulls have beaten the bears. That can start a move up towards the stiff $0.10-$0.11 overhead resistance zone. Conversely, if the support at $0.07 is broken, the pair can drop to $0.06.
Polygon Price Analysis
Polygon (MATIC) has been trading below the 20-day EMA ($1.14) since March 20. This suggests that the bears are trying to turn the 20 day EMA into resistance.
A minor positive in favor of the bulls is that the bears have been unable to sink the price below the strong support zone of $1.05 and the 200-day SMA ($0.96). This suggests strong buying at the lower levels.
If the buyers push the price above the 20-day EMA, the MATIC/USDT pair can rally towards the overhead resistance of $1.30. Such a move will suggest that the pair may continue its range-bound action between $1.05 and $1.30 for longer. A break above or below this range could initiate the next trend move.
Related: BTC Price Focuses on $28K as Deutsche Bank Shares Follow Credit Suisse
Solana Price Analysis
Price action in Solana (SOL) has turned down further and is now trapped between the moving averages. This suggests indecision between the bulls and the bears about the next directional move.
The flat 20-day EMA ($21.17) and the RSI near the midpoint do not give a clear advantage to either the bulls or the bears.
To gain an advantage, the buyers will have to push the price above the upper resistance zone between the downtrend line and $27.12. If they do, it will indicate a possible trend reversal. The SOL/USDT pair may then attempt a rally to $39.
Conversely, if the price breaks below the 20-day EMA, the bears will try to drag the pair to the crucial support zone between $18.70 and $15.28.
Moles Price Analysis
Polkadot (DOT) has been trading near the 200-day SMA ($5.98) for the past few days. The fact that the bulls failed to make a strong bounce off major support indicates a lack of demand at higher levels.
This increases the risk of a break below the 200-day SMA. If that happens, the DOT/USDT pair could slide to $5.15. This is important support to watch because a break below will open the doors for a probable retest of $4.22.
This short-term bearish view will be invalidated if the bulls push and hold the price above the 61.8% Fibonacci retracement level of $6.85. If this level is cleared, the pair could reach the neckline of the developing H&S pattern.
Litecoin Price Analysis
Litecoin (LTC) is coming back with a bang. The momentum picked up after the bulls pushed the price above the 20-day EMA ($85) on March 22.
The RSI has risen to the positive territory and the 20 day EMA has started to turn around, indicating that the bulls have the upper hand. The buyers will try to challenge the resistance above $106, where the bears can mount a strong defense. If the bulls clear this hurdle, the LTC/USDT pair can rally to $115 and then $125.
Conversely, if the price turns back below $106, it will suggest that the bears are unwilling to budge. That could send the price down to the 20 day EMA. A break below this support will suggest possible range formation in the short term.
The views, thoughts, and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
