Bitcoin appears to be losing momentum and altcoins are stalling, but the fact that bulls are holding key support levels could signal that the rally will continue after a brief pause.
The speculation regarding the U.S. Federal Reserve’s tightening cycle and recent geopolitical developments may have resulted in panic selling by short-term traders. Analysis from Glassnode suggested that traders who had purchased Bitcoin (BTC) near the November 2021 high liquidated their positions in the past two and half months. This supply was absorbed by high conviction investors, which resulted in a redistribution from weak hands to strong hands.
The crypto market, due to its resilience, continues to attract erstwhile naysayers to its fold. The latest popular figure to have a change of heart is Ken Griffin, founder of American multinational hedge fund and financial services company Citadel. In an interview with Bloomberg, Griffin said that Citadel will “engage in making markets in cryptocurrencies” over the next few months.
Voyager Digital co-founder and CEO Stephen Ehrlich told Cointelegraph that the firm’s recent quarter was its “best ever, so I certainly feel it's a great time to be in crypto." Along with businesses, Ehrlich believes that crypto investors are likely to be rewarded in the long term.
Will the demand remain intact at higher levels and could the recovery extend further in the next few days? Let’s analyze the charts of the top-10 cryptocurrencies to find out.
Bitcoin’s recovery has reached the overhead resistance zone between $45,821 and the resistance line of the ascending channel. The bears are expected to defend the zone with vigor.
The 20-day exponential moving average ($40,797) has started to turn up and the relative strength index (RSI) is in the positive territory, indicating advantage to buyers. If the bulls arrest the next dip at the 20-day EMA, it will increase the possibility of a break above the channel. If that happens, the BTC/USDT pair could rally to $52,088.
Contrary to this assumption, if the price turns down and breaks below the moving averages, it will suggest that the pair could remain stuck inside the channel for a few more days. The pair may then drop toward the support line of the channel.
Ether (ETH) broke and closed above the 50-day simple moving average ($2,860) on Feb. 28, indicating that bulls are attempting a comeback. The moving averages are close to completing a bullish crossover and the RSI is in the positive territory, indicating that the path of least resistance is to the upside.
If the price rebounds off the 20-day EMA ($2,824), it will suggest that the bulls are buying on every minor dip. The ETH/USDT pair could then rise to the resistance line of the symmetrical triangle pattern. The bears are likely to defend this level aggressively but if bulls surpass this barrier, the pair could start a new uptrend.
Alternatively, if the price slips below the 20-day EMA, the pair could drop to the support line of the triangle. A break and close below the triangle could suggest the resumption of the downtrend. The price action inside the triangle is likely to remain volatile.
Binance Coin (BNB) broke above the 50-day SMA ($406) on March 1 but the long wick on the candlestick indicates selling at higher levels. The bulls again pushed the price above the 50-day SMA today but are struggling to sustain the higher levels.
This indicates that the bears are trying to defend the 50-day SMA. If the price turns down from the current level but does not break below the 20-day EMA ($391), it will suggest that bulls are buying on dips.
That will improve the prospects of a break and close above the 50-day SMA. If that happens, the BNB/USDT pair could rally to the overhead resistance at $445. This positive view will invalidate in the short term if the price breaks and sustains below the 20-day EMA.
Ripple (XRP) rose to the downtrend line on Feb. 28 where the bears are mounting a strong defense. The price has turned down from the downtrend line and could now drop to the 50-day SMA ($0.72).
The flattish moving averages and the RSI near the midpoint suggest a balance between supply and demand. This balance will shift in favor of the buyers if the XRP/USDT pair rises and sustains above the downtrend line. The pair could then rally to $0.85 and later to $0.91.
Conversely, if the price slips below the 50-day SMA, it will suggest that higher levels continue to witness strong selling. The pair could then drop to $0.68 and if this level also cracks, the next stop may be the Feb. 24 intraday low at $0.62.
The bulls have been trying to sustain Terra’s LUNA token above the overhead resistance at $94 for the past two days but the bears have not allowed that to happen.
The moving averages have completed a bullish crossover, indicating advantage to buyers. However, the RSI in the overbought territory suggests that the rally may be extended in the short term. The failure to push and sustain the price above $94 could attract profit-booking from short-term traders.
That could pull the price toward $80. If the price rebounds off this level, it will suggest that sentiment remains positive and traders are buying on dips. The bulls will then again attempt to clear the overhead hurdle at $94. If they succeed, the LUNA/USDT pair could retest the all-time high at $103.
Alternatively, a break and close below $80 could suggest a deeper correction to the 20-day EMA ($68).
Solana (SOL) broke above the 20-day EMA ($95) on Feb. 28 and successfully held the retest on March 1. The bulls are striving to push the price above the 50-day SMA ($106). If they succeed, the rally could extend to $122.
The 20-day EMA has flattened out and the RSI has risen into the positive zone, indicating that bulls are on a comeback. If bulls push and sustain the price above $122, the SOL/USDT pair will complete a double bottom pattern. The pair could then rally to $163.
This bullish view will invalidate in the short term if the price turns down and breaks below the 20-day EMA. Such a move will suggest that demand dries up at higher levels. That could keep the pair range-bound between $81 and $122 for a few days.
Cardano (ADA) has reached the breakdown level at $1. This is an important level for the bears to defend because a break and close above it will suggest that the markets have rejected the lower levels.
The flattish moving averages and the RSI just below the midpoint suggest that the bears may be losing their grip. If bulls push and sustain the price above $1, the ADA/USDT pair could rally to the resistance line of the channel.
A break and close above the channel will suggest a possible change in trend. The pair could then rise to the overhead resistance at $1.60. This bullish view will invalidate if the price turns down sharply from the current level. In that case, the pair may retest the support at $0.82.
Avalanche (AVAX) broke above the moving averages on Feb. 28 and reached the downtrend line of the descending channel on March 1. The bears are attempting to defend this level as they have done on three previous occasions.
If the price dips from the current level but does not break below the moving averages, it will suggest that the sentiment may have changed from sell on rallies to buy on dips.
The bulls will then make one more attempt to push and sustain the price above the channel. If they succeed, it will signal a possible change in trend. The AVAX/USDT pair could then rally to $100.
On the contrary, if the price breaks and slips below the moving averages, it will suggest that bears continue to sell aggressively. The pair could then drop to $64.
Polkadot (DOT) broke and closed above the 20-day EMA ($18) on Feb. 28 but the bulls have not been able to clear the overhead hurdle at the 50-day SMA ($20). This indicates that bears continue to sell at higher levels.
The 20-day EMA has flattened out and the RSI is just above the midpoint, indicating a possible range-bound action in the near term. If buyers push the price above the 50-day SMA, the DOT/USDT pair could rally to $23.
Contrary to this assumption, if the price turns down from the current level and breaks below the 20-day EMA, the pair could retest the strong support zone at $16 to $14. The bears will have to pull the price below this zone to resume the downtrend.
Dogecoin (DOGE) sharply rebounded off the $0.12 support on Feb. 28, indicating that the bulls are aggressively defending the level.
The relief rally is facing resistance at the 20-day EMA ($0.13), suggesting that the bears have not yet given up and they continue to sell on rallies.
If the price turns down from the moving averages, the DOGE/USDT pair could drop to $0.12. This is an important level for the bulls to defend because a break below it could pull the pair to the psychological support at $0.10.
Conversely, if the price breaks above the moving averages, the pair could rally to the overhead resistance at $0.17. The bullish momentum could pick up above this level.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.
Altcoin Roundup: JunoSwap, Solidly and VVS Finance give DeFi a much-needed refresh
DeFi is undergoing a revival and this time, it’s happening on Ethereum network competitors. Decentralized finance (DeFi) was the talk of the town in early 2021, but it has since taken a back seat to more appealing sectors like nonfungible tokens (NFTs), memecoins and blockchain gaming. Now that cross-chain bridges and interoperability have allowed for the easier migration of assets to competing chains, a new class of DeFi protocols is arising to challenge those left from 2021
The Ultimate Guide to Blockchain Consensus Mechanisms
Proof-of-work, proof-of-stake, or rather proof-of-authority? To guarantee the trustworthiness of a blockchain, participants need to reach an agreement on the status of the network. To achieve this, many new consensus processes have been developed over the years. In this article, we take a closer look at what constitutes a consensus mechanism and why it is … Continued The post The Ultimate Guide to Blockchain Consensus Mechanisms appeared first on BeInCrypto.
Price analysis 3/4: BTC, ETH, BNB, XRP, LUNA, SOL, ADA, AVAX, DOT, DOGE
Traders continue to sell the top of each rally, resulting in a sharp pullback in Bitcoin price and several major altcoins. The equity markets in Europe and the United States are seeing a sea of red as traders continue to sell risky assets due to the geopolitical situation. Bitcoin (BTC) and several major cryptocurrencies are also witnessing profit-booking after the recent rise. Another reason that could be keeping investors on the edge is the upcoming Federal Open Market Comm
Japan Joins G7 Members in Enforcing Sanctions Against Russia; New Partnership Forms
Japan joins its G7 members in a new effort to impose additional sanctions on Russia in the wake of its unprovoked invasion of Ukraine. The post Japan Joins G7 Members in Enforcing Sanctions Against Russia; New Partnership Forms appeared first on BeInCrypto.
Crypto Assets ‘Do Not Exhibit Characteristics of Money,’ Says Malaysia Deputy Minister
On Thursday, Malaysia rejected crypto as legal tender on the basis that it does not exhibit typical characteristics of money. The post Crypto Assets ‘Do Not Exhibit Characteristics of Money,’ Says Malaysia Deputy Minister appeared first on BeInCrypto.
EOS Total Value Locked (TVL) Nears $300 Million Milestone
EOS has been tagged as an Ethereum Killer, but has failed to impress DeFi fans. TVL in the project is nearing the $300 million milestone. The post EOS Total Value Locked (TVL) Nears $300 Million Milestone appeared first on BeInCrypto.
Three-Year Bitcoin Mining Ban Bill in New York Backed by State Assemblymen
Hopes of making New York the Bitcoin capital of the world might have to wait after new plans to ban some crypto mining facilities in the state. The post Three-Year Bitcoin Mining Ban Bill in New York Backed by State Assemblymen appeared first on BeInCrypto.
Philippines Announces Major Push for Development of Blockchain Skills
The Philippines has big plans for its future, and much of it centers on blockchain technology. University-based innovation centers will be launched to increase knowledge and skills for students, the workforce, and even the government. Dr. Enrico Paringit, the executive director of the Department of Science and Technology – Philippine Council for Industry, Energy, and … Continued The post Philippines Announces Major Push for Development of Blockchain Skills appeared first on BeInCrypto.
Is Joe Rogan a Fan of Bitcoin and Cryptocurrency?
Joe Rogan has often invited guests on his podcast to talk about the cryptocurrency industry and its future — but is he actually a fan of Bitcoin himself? The post Is Joe Rogan a Fan of Bitcoin and Cryptocurrency? appeared first on BeInCrypto.
Bitcoin and Ethereum Mining Revenue Tumbled in February
Bitcoin and Ethereum mining revenues fell to new lows in February, likely due to a growing negative sentiment in the crypto market. The post Bitcoin and Ethereum Mining Revenue Tumbled in February appeared first on BeInCrypto.
Crypto Trading Volume in Russia Dropping Across Major Exchanges
Crypto trading volumes on major exchanges in Russia are dropping. Some may be using them to avoid sanctions, but that doesn't appear to be the case. The post Crypto Trading Volume in Russia Dropping Across Major Exchanges appeared first on BeInCrypto.
Venezuelan MetaMask Users Face Temporary Downtime, Others Lodge Censorship Complaints
Some users of MetaMask in Venezuela are facing temporary downtime due to a change in configuration settings of Infura related to recent economic sanctions. The post Venezuelan MetaMask Users Face Temporary Downtime, Others Lodge Censorship Complaints appeared first on BeInCrypto.
Bitcoin and Tether Become Legal Tender in Swiss City Lugano
A number of cryptocurrencies including Bitcoin and Tether have been made legal tender in Lugano, Switzerland, as the city aims to become a regional crypto hub. The post Bitcoin and Tether Become Legal Tender in Swiss City Lugano appeared first on BeInCrypto.
Financial Conduct Authority Investigating 50 Crypto Operators
The UK financial watchdog is pursuing 50 investigations into cryptocurrency business operators, which also included criminal probes. The post Financial Conduct Authority Investigating 50 Crypto Operators appeared first on BeInCrypto.
Metaverse Museum: Soon we will Roam with Ancient Extinct Creatures
Metaverse museum: Natural history museums are entering the metaverse. First job: accurate depictions of creatures that history got wrong. The post Metaverse Museum: Soon we will Roam with Ancient Extinct Creatures appeared first on BeInCrypto.
The Russian Invasion: How Does it Affect Your Crypto Investments?
The Russian Invasion: How Does it Affect Your Crypto Investments? The CEO of Buda.com gives him take on what the future holds. The post The Russian Invasion: How Does it Affect Your Crypto Investments? appeared first on BeInCrypto.
Pixelmon Raises $70m and Shocks Community with Truly Awful NFTs
Pixelmon promised a metaverse set to become "the largest, highest quality game NFT space has ever seen.” Alas. It turned into a circus. The post Pixelmon Raises $70m and Shocks Community with Truly Awful NFTs appeared first on BeInCrypto.
Ethereum price finally topped $3K, but data suggests a reversal is nowhere in sight
ETH traders were excited by the recent break above $3,000, but a handful of data points suggest that Ethereum price will stay in a downtrend. There is an old saying in traditional markets which is actually more like a trading rule. It goes, “when the trend is negative, one can only be neutral or short,” meaning bet on the price decrease. The problem is that a relief bounce tricks traders into believing that the negative prevailing sentiment has shifted into a buyers’ market.F
Ethereum price consolidates near $2.8K as analysts say bulls prepare for a push higher
ETH bulls are struggling to hold $2,800, but analysts hint that multiple timeframes point to an eventual breakout to the $3,000 range. Choppy market conditions dominated the cryptocurrency landscape on March 3 as the global economy continues to face challenges on multiple fronts and uncertainty about the future weighs heavily on asset prices. Data from Cointelegraph Markets Pro and TradingView shows that the gains made by Ether (ETH) on March 2 were nullified in trading on M