Bitcoin and altcoins could see profit taking and risk-off positioning as the weekend approaches and investor concerns about Deutsche Bank arise.
The European stock markets fell on March 24 on renewed fears that the banking crisis could rear its ugly head once again. The latest selling was triggered after Deutsche Bank’s credit default swaps, which offer protection to the buyer against specific risks, soared on March 23 without any known catalyst. That pulled down the shares of the German lender by 11%.
European Central Bank President Christine Lagarde attempted to calm the markets, saying that the euro area baking sector was strong due to the regulatory reforms introduced after the Global Financial Crisis. That could be one of the reasons for the solid recovery in the United States equities markets from the intraday lows.
Although the banking crisis has been positive for Bitcoin’s (BTC) price, the trend may pause if the contagion spreads. During times of panic, traders sell assets to curtail risk. At that time, if Bitcoin does not break below the $25,000 to $20,000 support zone, it will suggest that the bear phase is over.
Could Bitcoin and most major altcoins witness a minor correction? What are the important support levels to keep an eye on? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin formed an inside-day candlestick pattern on March 23, indicating uncertainty among buyers and sellers. The bulls want to extend the up-move but the bears are in no mood to relent. That has kept the price inside a small range.
Generally, a tight consolidation near a local high is a sign that traders are not booking profits in a hurry because they anticipate the uptrend to continue. The rising 20-day exponential moving average ($25,595) and the relative strength index (RSI) near the overbought zone indicate that bulls are in command.
If the price rebounds off $26,500 with strength, the bulls will again try to start the next leg of the rally. That could propel the price to $30,000 and then to $32,500.
The $25,250 support remains the key level because a break and close below it may indicate a bull trap. The BTC/USDT pair could then collapse toward the 200-day simple moving average ($20,095).
Ether price analysis
Ether (ETH) rose above the overhead resistance of $1,842 on March 23 but the bulls could not sustain the breakout as seen from the long wick on the candlestick.
The bears are trying to strengthen their position by pulling the price toward the 20-day EMA ($1,693). This remains the key level to watch out for on the downside.
If the price rebounds off this level, it will suggest that traders continue to view the dips to the 20-day EMA as a buying opportunity. The bulls will then again try to clear the overhead barrier and catapult the price to $2,000.
This positive view will be negated in the near term if the price plunges below the 20-day EMA. That could tug the price to $1,600 and then to $1,461.
BNB price analysis
BNB (BNB) bounced off the 20-day EMA ($316) on March 23 but the bulls are struggling to sustain the relief rally. This shows that the bears are pouncing on every minor recovery.
Sellers will try to tug the price below the 20-day EMA. If they do that, the BNB/USDT pair could drop to $300 and then to 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 rebounds off the 20-day EMA, it will suggest that the sentiment remains positive and traders are buying the dips. The pair could pick up momentum above $346 and the next stop on the upside is $400.
XRP price analysis
XRP (XRP) formed consecutive inside-day candlestick patterns on March 22 and 23, indicating indecision among buyers and sellers.
A minor positive 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 floor.
Sometimes, after a sharp move, the price tends to consolidate for a few days before resuming a trending move. In this case, buyers will have to thrust 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 may result in a retest of $0.36.
Cardano price analysis
The bulls have been sustaining 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 selling by the bears near $0.39.
The 20-day EMA ($0.34) is trying to turn up and the RSI is just above the midpoint, indicating a slight advantage to the bulls. If the price turns up from the 20-day EMA, the likelihood of a rally to the neckline increases. A break above the H&S pattern indicates the start of a new potential up-move.
Contrarily, if the price slips below the 20-day EMA, it will suggest that bears are trying a comeback. A break and close below $0.30 may accelerate selling and yank the price 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.
The bears will next try to pull the price to the strong support at $0.07. A strong bounce off this level will suggest that the DOGE/USDT pair may remain stuck between the $0.07 to 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 overpowered the bears. That may start an up-move toward the stiff overhead resistance zone of $0.10 to $0.11. Conversely, if the $0.07 support cracks, the pair may plummet 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 flip the 20-day EMA into resistance.
A minor positive in favor of the bulls is that the bears have not been able to sink the price below the strong support zone of $1.05 and the 200-day SMA ($0.96). This suggests strong buying at lower levels.
If buyers push the price above the 20-day EMA, the MATIC/USDT pair may rise toward the overhead resistance at $1.30. Such a move will suggest that the pair may continue its range-bound action between $1.05 and $1.30 for some more time. A break above or below this range could start the next trending move.
Related: BTC price centers on $28K as Deutsche Bank shares follow Credit Suisse
Solana price analysis
The price action in Solana (SOL) has narrowed down further and is now stuck between the moving averages. This suggests indecision among 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 either to the bulls or the bears.
To gain the upper hand, buyers will have to drive the price above the overhead resistance zone between the downtrend line and $27.12. If they do that, it will signal a potential trend change. The SOL/USDT pair may then attempt a rally to $39.
On the contrary, 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.
Polkadot price analysis
Polkadot (DOT) has been trading close to the 200-day SMA ($5.98) for the past few days. The failure of the bulls to achieve a strong rebound off an important 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 an important support to keep an eye on because a break below it will open the doors for a probable retest of $4.22.
This short-term bearish view will be invalidated if the bulls push and sustain the price above the 61.8% Fibonacci retracement level of $6.85. If this level is taken out, the pair could reach the neckline of the developing H&S pattern.
Litecoin price analysis
Litecoin (LTC) is making a strong comeback. The momentum picked up after the bulls pushed the price above the 20-day EMA ($85) on March 22.
The RSI has climbed into the positive territory and the 20-day EMA has started to turn up, indicating that bulls have the upper hand. Buyers will try to challenge the overhead resistance at $106 where the bears may mount a strong defense. If bulls clear this hurdle, the LTC/USDT pair may rally to $115 and subsequently to $125.
Conversely, if the price once again turns down from $106, it will suggest that bears are not willing to relent. That could pull the price down to the 20-day EMA. A break below this support will hint at a possible range formation in the short term.
The views, thoughts and opinions expressed here are 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 conduct their own research when making a decision.
