Bitcoin has maintained its position above $25,000 for several days, indicating that there is a possibility that the bear market may have ended. In the initial stages of a new bull phase, many analysts remain doubtful and expect the downtrend to resume, with another group of traders waiting for a dip to buy at lower levels. However, if the price does not oblige, the traders sitting on the fence may buy in, leading to a correction that shakes out weak hands and transfers the asset to investors with conviction. When a new trend is being established, certain events tend to cause knee-jerk reactions, but it’s unlikely that the trend is reversed.
Bitcoin’s charts show that a drop to trap aggressive bears is possible, but resuming the bear market is unlikely. Important levels to watch out for on the upside and downside of Bitcoin and altcoins include: above $28,500 will clear the path for a possible rally to the $30,000-$32,500 resistance zone, and if the price rebounds off $25,250, the neckline of the head and shoulders (H&S) pattern has flipped into support. If the $25,250 level cracks, it could trigger the stops of several bulls and cause the BTC/USDT pair to nosedive to the 200-day simple moving average (SMA) at $20,020.
Ether bounced off $1,717, indicating that the bulls are purchasing minor dips and not waiting for a deeper correction to buy. The flat moving averages and RSI near the midpoint suggest that range-bound action may continue for some time. Buyers may thrust the price above $1,842, which may lead to a jump to $2,000, and an attempt to rally to $2,200, invalidating the bullish view if the price turns down and plunges below the 20-day EMA.
The failure of the bulls to push BNB above $346 in the past few days indicates that the bears are fiercely guarding the level. If the price rebounds off the 20-day EMA, it will suggest that sentiment has turned positive and traders see dips as a buying opportunity. If the bulls clear the hurdle at $346, BNB/USDT pair could soar toward $400, but if the price plummets below the 20-day EMA, the pair may descend to $288.
XRP skyrocketed above the 200-day SMA ($0.40) and the firm overhead resistance of $0.43 on March 21. After the sharp rally, traders seem to be booking profits near $0.50, leading to a pullback to the breakout level of $0.43. If the bulls flip this level into support, the XRP/USDT pair may again try to rise above $0.50, indicating the start of a potential new uptrend. If the price continues lower and breaks below the $0.43 support, it will suggest that traders are rushing to exit, trapping the aggressive bulls and sinking the pair to the 200-day SMA.
Cardano surged above the moving averages on March 21, indicating that lower levels are attracting buyers. The bears have not given up and are trying to halt the recovery at $0.39, which means the onus is on the bulls to flip the moving averages into support. If they manage to do that, the ADA/USDT pair could rally to the neckline of the developing H&S pattern. If the price turns down and slips below the moving averages, it will indicate that higher levels continue to attract sellers.
DOGE has been trading between $0.07 and the 200-day SMA ($0.08), suggesting indecision among the bulls and the bears about the next move. The first sign of strength will be a break and close above the 200-day SMA, which could open the doors for a rise to $0.09 and $0.10. The DOGE/USDT pair may slump to $0.06 and subsequently to the crucial support at $0.05 if the price breaks below the support at $0.07.
MATIC has been swinging above and below the 20-day EMA ($1.15), indicating a lack of direction. The MATIC/USDT pair may consolidate between $1.05 and $1.30 for a while so that the longer the price consolidates in the range, the stronger the eventual breakout from it will be. If bulls force the price above $1.30, the pair may accelerate to $1.57 and afterward to $1.75. Alternatively, if the price breaks below the 200-day SMA, it will suggest that bears are back in command.
SOL attempted to push above the downtrend line on March 20, but the bears held their ground. If the bulls thrust the price above the trendline, it signals potential trend change, and SOL/USDT pair could rise to $27.12 where the bears may again mount a strong defense. Otherwise, the pair may slide to $15.28 if the price turns down from the current level and breaks below the 20-day EMA.
DOT bounced off the 200-day SMA ($6) on March 21, indicating that the bulls are trying to flip the level to support, but the balance will tilt in favor of the buyers should they propel the price above the 61.8% Fibonacci retracement level of $6, pushing the DOT/USDT pair toward the neckline of the developing H&S pattern. The bears are likely to have other plans and will try to protect the overhead resistance and sink the price below the 200-day SMA.
SHIB is getting squeezed between the downtrend line and has been ranging between $0.07 and $0.08. It is unclear which direction it will take. The SHIB/USDT pair may climb to $0.09 and $0.10 if there’s a break and close above the range. The bears, on the other hand, may sink the price below the support at $0.07, causing the pair to slide to $0.06 and eventually to $0.05.
