The recent banking crisis in the United States seems to have shaken some customers’ confidence in the legacy banking system. According to Federal Reserve data, customers withdrew nearly $100 billion in deposits in the week ending March 15.
American venture capital investor and entrepreneur Tim Draper said in a March 25 report that “founders should consider a more diversified cash management approach” due to over-regulation of banks and micromanagement by the government. As part of the contingency plan, Draper recommends businesses to have “at least 6 months of short-term cash in each of two banks, one local bank and one global bank, and at least two payrolls worth of cash in Bitcoin (BTC) or other cryptocurrencies.” “
The move away from the traditional banking system to cryptocurrencies may have started as seen by the powerful Bitcoin in the past few days. Even after the recent rise, investors do not seem to be in a hurry to book profits in Bitcoin. However, the same cannot be said about most altcoins as they are witnessing a minor pullback.
In the short term, traders should choose cryptocurrencies to trade. Let’s study Bitcoin charts and choose altcoins that can start the next upward step.
Bitcoin price analysis
Bitcoin has been hovering around the $28,000 level for the past few days. Consolidation after a strong rally is a positive sign as it indicates that traders are staying in position, expecting an upward movement.
The rising 20-day exponential moving average ($25,936) and the relative strength index (RSI) in positive territory suggest bulls remain in control. That increases the prospect of a break above $28,900.
If that happens, the BTC/USDT pair could rally towards the $30,000 to $32,000 resistance zone. Bears will try to defend this zone with all their might because if they fail in their efforts, the pair may rise to $40,000.
Important support on the lower side is $25,250. If this level can’t be held, the pair could move to the 200-day simple moving average ($20,179).
The 4-hour chart shows that the pair has been trading in a range between $26,500 and $28,900 for some time. The 20-EMA is flat and the RSI is just above the midpoint, indicating a balance between supply and demand.
A break above $28,900 would signal that the bulls have overpowered the bears. That will show again from up-and-down. On the contrary, if the price falls below $26,500, the pair could go to $25,250 and then to $24,000.
XRP price analysis
XRP (XRP) rose above the $0.43 overhead resistance on March 21. Bears try to trap the aggressive bulls by pulling the price below the moving average but the bulls remain weak.
Buyers are trying to push the price to overhead resistance at $0.51. If the bulls clear this barrier, the ETH/USDT pair may try to rally to $0.56. This level is likely to witness aggressive selling by the bears, but if buyers circle the path, the next point could be $0.80.
Another possibility is that the price drops from $0.51. During the pullback, if the bulls flip the $0.43 level to support, it will indicate that sentiment has turned positive. That would increase the probability of a break above $0.51.
Important support to watch on the downside is $0.40. If this level gives way, the next support is $0.36.
The 4-hour chart shows that bears are trying to defend the 61.8% Fibonacci retracement level at $0.46 and bulls are buying dips to the 20-EMA. This indicates a state of balance between bulls and bears.
If the price stays above $0.46, it will suggest that the bulls have seized control. The pair can then try to rally to $0.49 where the bears can make a strong defense again. On the other hand, if the price falls below the 20-EMA, the pair can go down to $0.43 and then to $0.40.
Litecoin price analysis
While most major altcoins are struggling to start a recovery, Litecoin (LTC) is showing signs of strength. The 20-day EMA ($86) has started and the RSI is in the positive zone, indicating gains for buyers.
The LTC/USDT pair may first rise to $98 and then retest the strong overhead resistance at $106. This is an important level to watch out for because if it breaks, the pair could accelerate to $115 and then to $130.
Alternatively, if the price falls sharply from $106, it will indicate that the bear is active at a higher level. The pair could then move down to the 20-day EMA. If the price rebounds from this level, it will indicate that sentiment remains positive. The bull will then try again to continue the upward move.
The first sign of weakness will be a break and close below the 20-day EMA. That could open the door to drop to $75.
A rebound from the 20-EMA on the 4-hour chart indicates that the bulls see the dips as a buying opportunity. The bulls will try to kick the price above $96 and extend the upward move to the overhead resistance at $106.
Conversely, if the price breaks below the 20-EMA, it will suggest that the bullish momentum is weakening. The pair can then move down to the uptrend line. This is an important level for bulls to defend because if it cracks, the pair could fall to $75.
related: Bitcoin 1 week away from ‘confirmation’ of new bull market – analysts
Monero price analysis
After trading near the moving average for several days, Monero (XMR) has broken free and is trying to climb higher.
The 20-day EMA ($153) has started and the RSI is in positive territory, indicating that buyers have an edge. There is a small resistance at $170 but if the bulls overcome this barrier, the XMR/USDT pair can take momentum and soar to $187 and further to $210.
The moving average is expected to provide support during the pullback. A break and close below the 200-day SMA ($150) can turn the tide in favor of the bears. The pair could then drop to $132.
The 20-EMA on the 4-hour chart is tilted upwards and the RSI is in the positive zone, indicating that the bulls have the upper hand. The pair can reach $169 where bulls can again face stiff resistance from bears.
However, on the way down, if the bull does not allow the price to break below the 20-EMA, it will increase the possibility of a rally above $169. If this happens, the pair may rise to $180 and later to $188.
The first sign of weakness will be a break and close below the 20-EMA. That can open the door to be able to drop into 200-SMA.
Avalanche price analysis
Bulls have managed to hold Avalanche (AVAX) above its moving average, indicating that lower levels are attracting buyers.
The price has been consolidating between $18.25 and the 200-day SMA ($16.05) for the past few days, but this related action will not last long. If the buyers push the price above $18.25, the AVAX/USDT pair will try to rally to $22 where they may face strong selling by the bears.
This positive view will be invalidated in the near term if the price falls and stays below the 200 day SMA. The pair could then slide to $15.24 and then to $14.
The bulls have managed to maintain the $16.25 level on the lower side but failed to push the pair above the resistance line. This shows that the bears have not given up and are continuing to sell in the rally. The flattish 20-EMA and the RSI near the midpoint do not give clear advantages to buyers or sellers.
This uncertainty can be tilted in favor of the bulls if they take out the resistance line. The pair may start the next recovery to $20 and later to $22. A break and close below $16.25 will tilt the advantage in favor of the bears.
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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.