Bitcoin (BTC) is on track to close the week with gains of over 23%. The banking crisis in the United States and Europe seems to have fueled the purchase of Bitcoin, indicating that the leading cryptocurrency is behaving as a safe-haven asset in the near term.
All eyes are on the March 21-22 Federal Reserve meeting. Bank failures in the US have raised hopes that the Fed will not raise rates at the meeting. CME’s FedWatch Tool it shows a 38% chance of a pause and a 62% chance of a 25 basis point rate hike on March 22.
Analysts are divided on the consequences of the current crisis on the economy. Former Coinbase CTO Balaji Srinivasan believes the US will enter a period of hyperinflation, while pseudonymous Twitter user James Medlock believes otherwise. Srinivasan plans to make a million-dollar bet with Medlock and someone else that the price of Bitcoin will hit $1 million on June 17.
Although anything is possible in the crypto markets, traders need to be prudent in their trading and not get carried away with lofty goals.
Let’s study the Bitcoin and altcoin charts that are showing signs of resuming the upward move after a minor correction.
Bitcoin Price Analysis
Bitcoin soared above the $25,250 resistance on March 17, completing a bullish inverse head and shoulders (H&S) pattern.
Usually, a breakout of a major setup returns to retest the breakout level, but in some cases, the rally continues unabated.
The rise of the 20-day exponential moving average ($24,088) and the relative strength index (RSI) into overbought territory indicate an advantage for buyers. If the price breaks above $28,000, the rally could pick up momentum and rally to $30,000 and then $32,000. This level is likely to see heavy selling by the bears.
Another possibility is that the price turns down from the current level but bounces off $25,250. That will also keep the uptrend intact.
The positive view will be invalidated in the short term if the price falls below the moving averages. Such a move will suggest that the break above $25,250 may have been a bull trap. That could open the doors for a possible drop to the psychologically critical $20,000 level.
The 4-hour chart shows that the BTC/USDT pair is facing a profit reserve near $27,750, but a positive sign is that the pullback has been shallow. The buyers will try to push the price above $28,000 and resume the uptrend. Then the pair could rally to $30,000.
On the other hand, if the price turns down and falls below the 20 day EMA, it will suggest that traders are rushing out. That can send the price down to the important support of $25,250, where the bulls and the bears may witness a tough battle.
Ether Price Analysis
The bulls conquered the $1800 resistance on March 18, but were unable to hold the higher levels. This shows that the bears are vigorously protecting the $1,800 level in Ether (ETH).
Critical support to watch on the downside is the area between $1,680 and the 20-day EMA ($1,646). If the price bounces off this zone, it indicates that sentiment has turned positive and traders are buying on dips.
The buyers will again try to resume the uptrend and push the price towards the next target of $2,000. This level may prove to be a huge hurdle for the bulls to cross.
Conversely, if the price turns down and falls below the moving averages, it will suggest that the bulls are losing control. The ETH/USDT pair can drop to $1,461.
The 4-hour chart shows that the pair bounced off the support at $1,743. This suggests that the bulls are buying the shallow dips and are not waiting for a deeper correction to enter. The buyers will try to push the price above $1,841. If this level is cleared, the pair can run towards $2,000.
Conversely, if the price turns down and falls below $1,743, short-term traders can take profit. Then the pair could slide to the next major support at $1,680.
BNB Price Analysis
BNB (BNB) rose above $338 on March 18, invalidating the bearish H&S pattern. Typically, when a bearish pattern fails, it attracts buying from bulls and short covering from bears.
The onus is on the bulls to hold the price above the immediate support at $318. If they manage to do that, the BNB/USDT pair could rally to $360 first and then $400. The rising 20-day EMA ($309) and the RSI near the overbought territory indicate that the path of least resistance is to the upside.
If the bears want to gain an advantage, they will have to pull the price below the moving averages. It may not be an easy task, but if completed successfully, the pair could drop to $280.
The 4-hour chart shows that the bulls are buying the dips of the 20-day EMA. The bears tried to stop the rally at $338 but the bulls broke through this resistance. The buyers will try to push the pair to $346. If this level gives way, the pair may continue its uptrend.
Alternatively, if the price turns down and breaks below the 20-EMA, it will suggest that short-term bulls may be taking profits on rallies. The pair could then drop to $318 where buyers may step in to stop the decline.
Related: Peter Schiff blames “too much government regulation” for worsening financial crisis
Battery Price Analysis
Stacks (STX) rose from $0.52 on March 10 to $1.29 on March 18, a strong run in a short time. This suggests aggressive buying by the bulls.
The STX/USDT pair is recording gains close to $1.29, but a positive sign is that the bulls have not given much ground to the bears. This suggests that minor dips are being bought. Typically, in a strong uptrend, corrections last from one to three days.
If the price rises above $1.29, the pair could resume its uptrend. The next stop to the upside is likely to be $1.55 and then $1.80.
The first sign of weakness to the downside will be a breakout and close below $1. That could clear the way for a drop to the 20-day EMA ($0.84).
The pair has corrected to the 20 day EMA. This is an important level for the bulls to defend if they want to resume the up move. If the price bounces off the 20-day EMA, the pair could retest the overhead resistance at $1.29. If the bulls break out of this barrier, the next stage of the uptrend can begin.
Conversely, if the bears sink the price below the 20 EMA, the pair could slide to $1 and then to the 50 SMA. A deeper correction may delay the resumption of the upside move and keep the pair trapped inside. of a range for a few days.
Immutable price analysis
Immutable (IMX) soared above the overhead resistance of $1.30 on March 17, completing the reverse H&S formation. This suggests the start of a possible new uptrend.
Meanwhile, the price may retest the breakout level of $1.30. If the price bounces hard off this level, it will suggest that the bulls have turned the level into support. The buyers will try to push the price above $1.59 and resume the uptrend. The IMX/USDT pair can then rally to $1.85 and then $2. The pattern target of the reversal setup is $2.23.
This positive view could be reversed in the short term if the price falls below the moving averages. Such a move will suggest that the break above $1.30 may have been a bull trap. The pair could then drop to $0.80.
The pair is seeing a bit of a correction, which is finding support at the 20 day EMA. The buyers are trying to clear the overhead hurdles at $1.59, but the bears are not budging. If the price breaks below the 20-day EMA, a pullback could go as far as $1.30.
Another possibility is that the price bounces off the 20 day EMA. That will signal solid demand at the lower levels and improve the prospects for a break above $1.59. If that happens, the pair may resume its uptrend.
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.
