Bitcoin (BTC) is on track to close the week with gains of over 23%. The banking crisis in the United States and Europe seems to have boosted buying in Bitcoin, indicating that the leading cryptocurrency is acting as a safe asset in the near future.
All eyes are on the Federal Reserve meeting on March 21 and 22. Bank failures in the US have raised hopes that the Fed will not raise rates at the meeting. The CME FedWatch tool shows a 38% chance of a pause and a 62% chance of a 25-basis-point rate hike on March 22.
Analysts are divided about the consequences of the current crisis on the economy. Former Coinbase chief technology officer Balaji Srinivasan believes the US is entering a period of hyperinflation while Twitter user under the pseudonym James Medlock believes otherwise. Srinivasan plans to make a millionaire’s bet with Medlock and others that the price of Bitcoin will reach $1 million on June 17.
Although anything can be done in the crypto market, traders should be careful in trading and not get carried away with high targets.
Let’s study the chart of Bitcoin and altcoins that show signs of the resumption of the upward movement after a small correction.
Bitcoin price analysis
Bitcoin rose above the $25,250 resistance on March 17, completing a bullish inverse head and shoulders (H&S) pattern.
Usually, the breakout from the main setup comes back to retest the breakout level but in some cases, the rally continues without stopping.
The rising 20-day exponential moving average ($24,088) and the relative strength index (RSI) in overbought territory indicate gains for buyers. If the price breaks above $28,000, the rally may pick up momentum and rise to $30,000 and then to $32,000. This level is likely to witness strong selling by bears.
Another possibility is that the price drops from the current level but rebounds to $25,250. That will also keep the bullish trend intact.
The positive view will be invalidated in the near term if the price falls below the moving average. Such a move would indicate that a break above $25,250 could be a bull trap. That could open the door to potentially dropping to the psychological critical level of $20,000.
The 4-hour chart shows that the BTC/USDT pair is facing a profit reservation near $27,750 but a positive sign is that the pullback is shallow. Buyers will try to push the price above $28,000 and continue the uptrend. The pair can then go up to $30,000.
On the other hand, if the price goes down and slumps below the 20-EMA, it will suggest that traders rush out. That could pull the price down to an important support at $25,250 where the bulls and bears could witness a tough battle.
Ether price analysis
The bulls broke the $1,800 resistance on March 18 but could not hold higher levels. This shows that the bears are protecting the $1,800 level in Ether (ETH) with enthusiasm.
Critical support to watch on the downside is the zone between $1,680 and the 20-day EMA ($1,646). If the price rebounds from this zone, it will signal that sentiment has turned positive and traders are buying on dips.
Buyers will again try to continue the uptrend and direct the price to the next target level at $2,000. This level could prove to be a major obstacle for the bulls to cross.
Conversely, if the price goes down and slumps below the moving average, it will suggest that the bulls lose their grip. The ETH/USDT pair could then drop to $1,461.
The 4-hour chart shows that the pair has pulled back from support at $1,743. This indicates that bulls are buying shallow and not waiting for a deeper correction. If this level is taken, the pair could run to $2,000.
On the contrary, if the price falls and falls below $1,743, short-term traders can profit. The pair could then slide to the next important support at $1,680.
BNB price analysis
BNB (BNB) rose above $338 on March 18, which invalidated the bearish H&S pattern. Usually, when a bearish pattern fails, it attracts buying from bulls and short covering by bears.
The onus is on the bulls to keep the price above the immediate support at $318. If they can do that, the BNB/USDT pair may first rise to $360 and then run to $400. The 20-day EMA is up ($309) and the RSI is near overbought territory indicating that the path of least resistance is up.
If the bears want to gain the upper hand, they must yank the price back below the moving average. This may not be an easy task, but if completed successfully, the pair could be worth $280.
The 4-hour chart shows that bulls are buying dips to the 20-EMA. Bears tried to stop the recovery at $338 but the bulls have pierced this resistance. Buyers will try to push the pair to $346. If this level gives way, the pair can continue to rise.
Alternatively, if the price breaks down and breaks below the 20-EMA, it will suggest that the short-term bulls may be taking profits on the rally. The pair could then drop to $318 where buyers could step in to capture the decline.
related: Peter Schiff blames ‘too much government regulation’ for the escalating financial crisis
Stack price analysis
Stacks (STX) rallied from $0.52 on March 10 to $1.29 on March 18, the fastest in a short period of time. This suggests aggressive buying by bulls.
The STX/USDT pair is witnessing a profit-booking close to $1.29 but the positive sign is that the bulls have not ceded much ground to the bears. This indicates that small dips are being bought. Usually, in a strong uptrend, a correction lasts one to three days.
If the price rises and falls above $1.29, the pair may continue to rise. The next stop on the rise is likely to be $1.55 and then $1.80.
The first sign of weakness on the downside will be a break and close below $1. That can clear the path to drop to the 20-day EMA ($0.84).
The pair has been corrected to the 20-EMA. This is an important level for bulls to defend if they want to continue their upward movement. If the price rebounds from the 20-EMA, the pair may retest the overhead resistance at $1.29. If the bull overcomes this barrier, the next leg of the uptrend can begin.
On the contrary, if the bears put the price below the 20-EMA, the pair can slide to $1 and then to the 50-simple moving average. A deeper correction could delay the resumption of the upward movement and keep the pair stuck for a few days.
Unchangeable price analysis
Immutable (IMX) skyrocketed above the $1.30 overhead resistance on March 17, which completed an inverted H&S formation. This indicates the start of a potential new uptrend.
Meanwhile, the price may retest the breakout level of $1.30. If the price rebounds from this level with strength, it will suggest that the bull has flipped the level to support. Buyers will try to push the price above $1.59 and continue to move up. The IMX/USDT pair was then able to rally to $1.85 and later to $2. The target of the reversal setup pattern is $2.23.
This positive view can be rejected in the near term if the price falls below the moving average. Such a move would indicate that a break above $1.30 could be a bull trap. The pair could then drop to $0.80.
The pair is witnessing a mild correction, which is looking for support at the 20-EMA. The buyers tried to clear the overhead barrier at $1.59 but the bears refused. If the price breaks below the 20-EMA, a pullback could reach $1.30.
Another possibility is the price rebound from the 20-EMA. This would indicate solid demand at lower levels and increase the prospect of a break above $1.59. If this happens, the pair can continue to climb.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.