The strength of the US dollar suggests that risk assets may remain under pressure in the near term, but Bitcoin and select are showing signs of resistance.
On March 7, US Federal Reserve Chairman Jerome Powell warned that interest rates could stay higher for longer than anticipated. This pushed expectations of a 50 basis point rate hike at the Fed’s March meeting to around 70%, from 30% the week before, according to data from the FedWatch Tool.
The US dollar soared and the S&P 500 plunged after Powell’s comments on March 7, but one minor silver lining in favor of cryptocurrency investors is that Bitcoin (BTC) remained relatively quiet. The next trigger that could influence the markets is the February jobs report due to be released on March 10.
Although the macroeconomic environment is not favorable for risk assets, Bitcoin has shown relative resilience. This suggests that Bitcoin investors are not panicking and abandoning their positions due to short-term uncertainty.
Will Bitcoin and the major altcoins continue to decline or will a bounce be around the corner? Let’s study the charts of the top 10 cryptocurrencies to find out.
USDT/BTC
The bulls are finding it difficult to push Bitcoin back above the breakout level of $22,800. This suggests a lack of aggressive buying at current levels. That could send the price down to the crucial support of $21,480. This is the decisive level in the short term.
The moving averages have completed a bearish crossover and the RSI is in the negative territory, indicating that the bears are in control.
If the price falls below $21,480, the bears will see their chances. They will then try to push the price up to the psychologically important level of $20,000. Buyers are expected to defend the $21,480-$20,000 zone with all their might because a break below may witness aggressive selling.
If the bulls want to avoid the sharp drop, they will have to quickly push the price above the moving averages. That could indicate a possible range-limited action between $21,480 and $25,250.
EUR/USDT
The buyers are trying to protect the $1,550 level in Ether (ETH), but one minor drawback is that they failed to put together a strong bounce. This suggests that the bears are selling on every small rally.
The 20-day exponential moving average ($1,599) has started to turn lower and the RSI is in the negative zone, indicating that the bears have the upper hand. If the $1,550 support breaks, the ETH/USDT pair can drop to $1,461.
This level may once again attract heavy buying by the bulls. If the price bounces off this level strongly, it will suggest that the pair may consolidate between $1,461 and $1,743 for some time. Conversely, a break below $1,461 will open the doors for a possible drop to $1,352. This level may once again attract heavy buying by the bulls.
USD/USDT
BNB (BNB) bounced off the $280 support on March 6-7, but the bears pounced on higher levels. This suggests that sentiment remains negative and every minor rally is being sold.
If $280 gives way, the BNB/USDT pair will complete a bearish head and shoulders pattern. This negative setup can start a move lower to $245 where the buyers will try to stop the slide.
Another possibility is that the bulls sustain the current bounce. Such a move will indicate that the buyers are fiercely defending the $280 support. That may start a rally to the 20-day EMA ($299).
The bears are expected to sell the rally to the 20 day EMA. If that happens, the pair can slide back to $280. Conversely, a break above the 20 day EMA will be the first sign to suggest that the bears may be losing control.
USD/XRP
XRP (XRP) rallied strongly from the $0.36 support and rose above the resistance line of the descending channel on March 8, a sign that the bulls are buying in full force.
If the buyers hold the price above the 50-day simple moving average ($0.39), it will suggest a potential short-term trend reversal. The XRP/USDT pair can then start its march towards $0.43, where the bears are likely to mount strong defense again. If the price turns down from this level, the pair can range from $0.36 to $0.43 for a while longer.
Conversely, if the price turns down from the current level, it will suggest that the bears are not willing to let the bulls get away with it. The sellers will again try to push the pair below $0.36 and clear the way for a possible drop to $0.33.
ADA/USDT
Cardano (ADA) bounced off $0.32 on March 7, but the bulls were unable to take advantage of this strength. This shows a lack of follow through buying at higher levels.
The bears are again trying to pull and hold the price below $0.32 on March 8. If they do, there is further support at the 61.8% Fibonacci retracement level of $0.30. If this level is broken, the selling could intensify and the ADA/USDT pair could plummet to the 78.6% Fibonacci retracement level of $0.27.
Contrary to this assumption, if the price rises from the current level or $0.30, the pair may try a recovery again. The bulls will win the day after driving the price above the moving averages.
DOGO/USDT
Dogecoin (DOGE) has been gradually moving lower towards the strong support near $0.07, but a minor positive is that the lower levels are attracting buyers, as seen by the long tail of the 6 and 7 candles. March.
The bulls are trying to push the price towards the breakout level of $0.08. This level is likely to attract heavy selling from the bears. If the price turns below $0.08, the DOGE/USDT pair can fall to $0.07 and remain stuck between these two levels for some time.
The bears may find it difficult to break the support near $0.07, but if they do, the pair could drop to the next major support near $0.06. On the upside, a break and close above the downtrend line will signal the start of a possible rally towards $0.10.
MATIC/USDT
Polygon (MATIC) has been trading in a tight range for the past few days, which was resolved lower on March 8. The failure to initiate a rally suggests that bulls may be wary of buying at current levels.
The MATIC/USDT pair could slide to the strong support at $1.05, where the bulls will try to protect the level. If the price bounces off this support, the pair could pull back to the moving averages.
This is an important level to watch because a breakout and close above it can suggest that the correction may be over. The pair may not start a new up move quickly, but rather remain range bound for a few days.
On the other hand, if the price turns down from the moving averages, it will suggest that the bears continue to sell rallies. The bears will try again to sink the price below $1.05. If they succeed, the pair can drop to $0.90.
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SOL/USDT
Solana (SOL) remains in a firm bear grip. The failure to initiate a bounce from the crucial support at $19.68 shows that buyers may not be jumping to buy.
The bears have pulled the price below $19.68 on March 8. This indicates the beginning of the next stage of the correction. The bears will try to further strengthen their position by pulling the SOL/USDT pair towards the next major support near $15.
If the bulls want to avoid this collapse, they will have to quickly push the price above the 20-day EMA ($21.80). That can start a relief rally towards the resistance line, where the bears can again pose a strong challenge.
POINT/USDT
Polkadot (DOT) turned down and broke below the support at $5.73 on March 8. This indicates that the bears are trying to further consolidate their position.
There is strong support at $5.56 but if this level is broken, the DOT/USDT pair may enter a downward spiral. The next support is much lower at $4.80.
Contrary to this assumption, if the price bounces from $5.56, the pair could reach the 20-day EMA ($6.30). During downtrends, the bears try to sell breakouts from the 20-day EMA. If the price turns down from this level, the probability of a break below $5.56 increases.
If the bulls want to make their presence felt, they will have to push the price above the moving averages.
USDT/USDT
Litecoin (LTC) turned down and broke below the immediate support of $85 on March 7. This indicates the resumption of the correction.
The LTC/USDT pair could fall to the support of $81 first. The bounce from this level can be faced with selling near the 20-day EMA ($92). If the price turns down from the 20 day EMA, the next stop could be the vital support at $75. This level is likely to attract solid buying by the bulls.
The further the price moves away from the local ceiling of $106, the longer it will take for the pair to resume its uptrend. The rally is likely to gain momentum after the price sustains above the moving averages.
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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.
