bitcoin ( BTC ) dipped below $40,000 on March 4 and traded below the level throughout the weekend. Although crypto price action has been...
bitcoin (BTC) dipped below $40,000 on March 4 and traded below the level throughout the weekend.
Although crypto price action has been volatile in recent days, data from Glassnode shows that institutional investors are gradually accumulating Bitcoin via Grayscale Bitcoin Trust (GBTC) stocks since December 2021.
In another positive sign, fund managers did not panic and dumped their holdings in GBTC. This suggests that managers may be optimistic in the long term, so they are overcoming the pain in the short term.
Bloomberg Intelligence said in its Crypto Market Outlook report on March 4 that Bitcoin could remain under pressure if US stock markets continue to slide, but ultimately they expect crypto to prevail. On the other hand, if the stock market recovers, then Bitcoin could ‘rise at a higher speed’ if past patterns repeat themselves.
Although the crypto markets are facing strong headwinds, some altcoins are showing signs of life. Let’s study the charts of the top 5 cryptocurrencies that could benefit from a rebound in Bitcoin.
BTC/USDT
Bitcoin broke below the moving averages on March 4, suggesting the bears are trying to gain the upper hand. The bulls tried to trap the aggressive bears by pushing the price back above the moving averages on March 5 and 6, but they failed.
If the price holds below the moving averages, the bears will try to pull the BTC/USDT pair towards the ascending channel support line. The bulls are likely to defend this level aggressively. A strong rebound from this support will suggest that the pair may extend its stay inside the channel for a few more days.
This short-term bearish view will be invalidated if the price rises from the current level and breaks above the 20-day exponential moving average ($40,474). This will indicate strong buying at lower levels. The bulls will then attempt to push the price towards the resistance line of the channel. The next trend move is likely to start after the pair breaks above or below the channel.
The 20-EMA on the 4-hour chart has moved lower and the Relative Strength Index (RSI) is in the negative zone, indicating that the bears have the upper hand. If the price breaks below $38,000, the pair could drop to $37,000 and then to $35,500.
Contrary to this assumption, if the price rises from the current level and breaks above the 20-EMA, it will suggest significant buying at lower levels. The bullish momentum could pick up after the pair’s breakout and close above the 50 simple moving average. This could open the doors for a possible rally to $45,000.
XRP/USDT
Ripple (XRP) attempted to rise above the downtrend line for the past few days, but the bears held firm. A small positive is that the bulls have not given up and are trying to defend the 50-day SMA ($0.72).
Flat moving averages and the RSI close to the midpoint do not give a clear advantage to either bulls or bears. If the bulls push and hold the price above the downtrend line, the momentum should pick up and the XRP/USDT pair could rally to $0.91.
A break and close above this level could pave the way for a possible retest of the psychological resistance at $1. Conversely, if the price slips and holds below $0.69, it will suggest that the bears are regaining control. The pair could then drop to $0.62.
The 4-hour chart shows that the pair is currently trading in a range between $0.80 and $0.70. If the buyers push the price above the downtrend line, the pair could challenge the broad resistance at $0.80. A break and close above this level could signal that the bulls have the upper hand. The pair might first climb to $0.85 and then to $0.91.
Contrary to this assumption, if the price is falling from the moving averages, it will suggest that the bears are selling on rallies. The pair could then fall to $0.70. If this level cracks, the selling could accelerate and the pair could drop to $0.62.
NEAR/USDT
The NEAR (NEAR) protocol is sandwiched between the moving averages of the past few days. This shows that the bears are selling on rallies towards the 50-day SMA ($11) while the bulls are buying on dips towards the 20-day EMA ($10).
The RSI is near the midpoint and the 20-day EMA has flattened out, indicating a balanced state between bulls and bears. If the price rebounds from the current level and breaks above $12, it will suggest that the bulls are back. The NEAR/USDT pair could then rally back to $14 where it could again encounter strong resistance from the bears.
Contrary to this assumption, if the price breaks and holds below the 20-day EMA, it will suggest that the bears have the upper hand. The pair could then fall to the strong support at $8.
The pair regained bullish momentum after breaking above the downtrend line, but the relief rally is facing strong resistance at $12. The bears pulled the price below the 20-EMA but the bulls managed to defend the 50-SMA.
If the buyers push and hold the price above the 20-EMA, the bulls will again try to clear the overhead hurdle at $12. Alternatively, if the price breaks below the 50-SMA, the selling could intensify and the pair could slide to $9.50.
Related: Bitcoin Heads for 36K, Analysis Says as Global Warning Stocks ‘Look Expensive’
XMR/USDT
Monero (XMR) has been correcting in a descending channel for several weeks. The bulls buy the dips at $134 and try to form a basic pattern.
This has led to consolidation between $134 and $188 over the past few days. The 20-day EMA ($164) has flattened out and the RSI is near the midpoint, indicating a balance between supply and demand.
This equilibrium will shift in favor of the buyers if they push and hold the price above $188. This will complete a double bottom pattern, which has a target objective at $242. However, the rally is unlikely to be easy as the bears are expected to mount a strong defense at the resistance line of the channel.
Contrary to this assumption, if the price turns down and slides below $155, the bears will attempt to pull the XMR/USDT pair to $134.
The 4-hour chart shows that the bulls pushed the price above the downtrend line, but couldn’t sustain the higher levels. This indicates that the bears are aggressively defending this level. The moving averages are flattening out and the RSI is just below the midpoint, indicating a balance between supply and demand.
If the price declines and slides below $155, the short-term trend could turn in favor of the bears. Conversely, a close above the downtrend line could improve the outlook for a possible rise in the overhead resistance at $188.
WAVES/USDT
Waves (WAVES) formed a double bottom pattern at $8 and rallied strongly to $21. The moving averages have completed a bullish crossover and the RSI is in the overbought zone, indicating that the bulls have the upper hand.
The bears pose a big challenge near $20, but one bright spot is that the bulls haven’t given up much ground. If the price is rising from the current level, it will suggest that the bulls are buying lower. This will increase the possibility of a retest to $21.
If the bulls push and hold the price above $21, the WAVES/USDT pair could gain momentum and rally towards $24 and then $27. This positive view will be invalidated in the short term if the bears pull and hold the pair below $16.
The 4-hour chart shows that the correction to $21 has taken the RSI from deeply overbought levels to just below the midpoint. The bulls bought the decline at the 38.2% Fibonacci retracement level at $16 and pushed the price back above the 20-EMA.
If the price holds above the 20-EMA, the bulls will attempt to push the pair above the broad resistance at $21.
Contrary to this assumption, if the price declines from the current level and breaks below the moving averages, this will suggest that short-term traders might be rushing out. This could pull the pair to $14 and then to $13.
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.
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