On March 17, after a brief recovery the day before, the equities markets in the United States have resumed a downward trend as investors continue to worry about the stability of banks in both the US and Europe. However, amidst these concerns, Bitcoin (BTC) has remained unaffected by the equities market and has risen to its highest level since January 12.
In a recent interview with CNBC, Michael Novogratz, the CEO and founder of Galaxy Digital, stated that the US and the rest of the world will experience a credit crunch as banks lend less for the purpose of rebuilding capital. He advised that investors should consider going long on Bitcoin and other cryptocurrencies as these times are the reasons for which they were created.
The current period of quantitative tightening appears to be making way for a phase of quantitative easing. The Federal Reserve has lent out $150 billion to banks, which is more than the amount borrowed during the 2008 financial crisis. Last week, the Fed added $300 billion to its balance sheet, which is only surpassed by the $500 billion it infused following the crash of March 2020. In 2020, the quantitative easing triggered a rally in the cryptocurrency market, with Bitcoin rising from around $4,000 to $69,000. The question now is whether the history will repeat itself, and if Bitcoin and other altcoins can sustain the higher levels. In order to find out, let’s examine the charts of the top-10 cryptocurrencies.
Bitcoin price analysis
After the BTC/USDT pair was purchased by bulls at $24,000 on March 15, the price was subsequently pushed above the strong overhead resistance of $25,250 on March 17. This completes an inverse head and shoulders (H&S) pattern. Given that there is no major resistance between the current level and $32,000, bulls may find it easy to cover this distance within a short timeframe. This said, bears might mount a robust defense at $32,000, but if the bulls can overcome this resistance, the BTC/USDT pair can extend its uptrend to hit the pattern target of $35,024. The upward trend is evident from the rising of the 20-day exponential moving average to $23,298 and the relative strength index (RSI) lurking close to the overbought zone, indicating that the bulls are in control. Until the bears launch an aggressive reversal and drive the pair below the moving averages, the bulls are inclined to consider dips as a buying opportunity.
Ethereum price analysis
After bouncing off the moving averages on March 16, Ether (ETH) traders are buying on dips. The bulls will attempt to push and keep the price above the $1,743 to $1,780 resistance zone. If they succeed, the ETH/USDT pair may quickly move toward the psychologically critical level of $2,000, which is the final obstacle above which the pair will signal the start of a possible uptrend. The bears will reportedly try to halt the up-move in the overhead zone and pull the pair back below the moving averages. If that happens, it may lead to the trapping of aggressive bulls, causing the pair to collapse to $1,461.
BNB price analysis
The long tail on the March 15 candlestick of BNB (BNB) demonstrates that the bulls are buying on dips to the 20-day EMA ($302), which indicates a change in sentiment from selling on rallies. The relief rally intensified on March 17 and skyrocketed above the overhead resistance point at $318. The buyers are now trying to strengthen their position further by kicking the price above $338. If they become successful, the negative H&S pattern will be invalidated, and the BNB/USDT pair could potentially first rally to $360 and later to $400. On the downside, a break below the 20-day EMA indicates that the bears are back in the driver’s seat.
XRP price analysis
XRP (XRP) has been consolidating within the narrow range between the 50-day simple moving average ($0.38) and the support at $0.36. Generally, tight-range trading is followed by a surge in volatility. The bulls will attempt to catapult the price above the 50-day SMA. If they can achieve this, it would signal a stronger recovery to $0.42, and if crossed, the rally could eventually reach $0.51. This optimistic view, however, will be challenged if the price declines swiftly and plummets below $0.36, leading to the pair slumping to the strong support zone between $0.32 and $0.30.
Cardano price analysis
Cardano (ADA) has been stuck between the 50-day SMA ($0.36) and the strong support at $0.29, with bulls trying to push the price above the 20-day EMA ($0.34). If they succeed, the ADA/USDT pair could climb to the 50-day SMA, which could attract sellers that can slow down the recovery. If the price turns down sharply from this level, the range-bound action may continue for some more time. On the other hand, if the bulls propel the price above the 50-day SMA, the pair could rally to the neckline of the inverse H&S pattern, which is an important level to keep an eye on as a break and close above it may suggest the start of a new uptrend.
Dogecoin price analysis
After rebounding off the $0.07 level, Dogecoin (DOGE) reached the downtrend line, which suggests that bulls are buying on minor dips. A break and close above the downtrend line will be the first sign that the correction may be over. The major hurdle, however, is that sellers are likely to defend the $0.10 to $0.11 zone with all their might as a break above it will further increase the chance of a rally to $0.16. On the downside, a slide below the $0.07 support level will tilt the advantage back in favor of the bears.
Polygon price analysis
After turning up from $1.07 on March 15, Polygon (MATIC) bulls appear to be attempting to flip the $1.05 level into support, signaling that there could be a balance between supply and demand since the 20-day EMA ($1.16) has flattened out, and the RSI is near the midpoint. If bulls can propel the price above the 50-day SMA ($1.22), the MATIC/USDT pair could accelerate and rally to $1.30, which may act as a minor hurdle but would likely be crossed. The next apparent stop would be $1.42. Conversely, if the price turns down sharply from the 50-day SMA, it will suggest that bears continue to sell on rallies, and the pair may alternate between the 50-day SMA and $1.05 for a little longer.
Solana price analysis
Solana (SOL) bulls do not appear to be waiting for a deeper dip to buy, as the price rebounded off $18.70 on March 16. The relief rally has reached the moving averages, which are predicted to pose a strong resistance. If the price turns down and breaks below $18.70, then the SOL/USDT pair could remain range-bound between the 50-day SMA ($22.21) and $15.28 for a while. A potential trend change will be evident when the bulls thrust the price above the downtrend line, signaling a rally to $27.12.
Polkadot price analysis
Although the DOT/USDT pair fell below the 20-day EMA ($6.09) on March 15, the bears could not maintain the lower levels. The buyers purchased the dip, driving the price back up above the 20-day EMA on March 16. If the bulls can push the price above the overhead resistance at the 50-day SMA ($6.41), the DOT/USDT pair could rise to the 61.8% Fibonacci retracement level of $6.85. This level may act as a robust resistance, but if the bulls flip the moving averages into support during the next pullback, it indicates bulls’ inclination to keep buying on dips, increasing the likelihood of the pair forming an inverse H&S pattern. On the other hand, if the price turns down once again from the 50-day SMA and drops below the 20-day EMA, it will indicate a few days of range-bound action.
Shiba Inu price analysis
Shiba Inu (SHIB) sprung back from the $0.000010 support on March 16, signaling that the bulls are attempting to initiate a reversal. The recovery is experiencing resistance in the zone between the 20-day EMA ($0.000011) and the descending channel’s downtrend line. The bears are likely to aim at sinking the price below the $0.000010 support. If they succeed, the…
