Bitcoin (BTC) is on track to end the week gains of more than 23%. The banking crisis in the United States and Europe appears to have boosted bitcoin buying, suggesting that the leading cryptocurrency is behaving as a safe haven in the near term.
All eyes are on the Federal Reserve meeting on March 21st and 22nd. The failure of US banks has raised hopes that the Fed will not raise rates at the meeting. 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 in their opinions on the consequences of the current crisis on the economy. Former Coinbase CTO Balaji Srinivasan believes the US will enter a period of hyperinflation, while Twitter pseudonymous user James Medlock believes the opposite. Srinivasan plans to make a million dollar bet with Medlock and another person who does Bitcoin price reaches $1 million until June 17.
Although anything is possible in the crypto markets, traders should be cautious when trading and not get carried away with lofty goals.
Let’s study the charts of Bitcoin and Altcoins, which are showing signs of resuming upward movement after a minor correction.
Bitcoin Price Analysis
Bitcoin soared above the $25,250 resistance on March 17, completing a bullish head-and-shoulders (H&S) inversion pattern.
Usually, the breakout from the main setup comes back to retest the breakout level, but in some cases the rally continues without limit.
A rising 20-day exponential moving average ($24,088) and the Relative Strength Index (RSI) in overbought territory suggest upside for buyers. If the price gets above $28,000, the rally could gain strength and climb to $30,000 and then to $32,000. This level is likely to witness strong bear selling.
Another possibility is that the price will drop from the current level but rebound from $25,250. This will also keep the bullish trend intact.
The positive outlook will be canceled in the near term if the price falls below the moving average. Such a move will indicate that a break above $25,250 may have been a bull trap. This could open the door for a possible decline to the psychologically critical $20,000 level.
The 4-hour chart shows that the BTC/USDT pair faces profit booking near $27,750, but the positive sign is that the decline was shallow. Buyers will try to push the price above $28,000 and resume the uptrend. The pair could then go up to $30,000.
On the other hand, if the price turns down and falls below the 20-EMA, it will indicate that traders are rushing to the exit. This may pull the price down to an important support at $25,250, where bulls and bears may witness a tough battle.
Ether price analysis
The bulls broke the $1,800 resistance on March 18, but failed to sustain higher levels. This shows that the bears are protecting the $1,800 level on Ether (ETH) with vigor.
Critical support to watch on the downside is the zone between $1,680 and the 20-day EMA ($1,646). If the price bounces off this zone, it will signal that sentiment has turned positive and traders are buying on the dips.
Buyers will then try again to resume the uptrend and move the price towards the next target target at $2000. This level may prove to be a major hurdle for the bulls to overcome.
Conversely, if the price turns down and falls below the moving average, it will indicate that the bulls are losing control. The ETH/USDT pair may then drop to $1,461.
The 4-hour chart shows that the pair has bounced off the support at $1,743. This suggests that bulls are buying shallow dips and not waiting for a deeper correction to get in. Buyers will next try to push the price above $1,841. If this level is removed, the pair can sprint towards $2,000.
Conversely, if the price turns lower and falls below $1,743, short-term traders can take profits. The pair could then slide to the next important support at $1,680.
BNB price analysis
BNB (BNB) rose above $338 on March 18, invalidating the H&S bearish pattern. Usually, when a bearish pattern fails, it attracts bullish buying and bearish short covering.
The onus is on the bulls to hold the price above the immediate support at $318. If they succeed, the BNB/USDT pair could first climb to $360 and then plunge to $400. The rising 20-day EMA ($309) and RSI near overbought territory indicate that the path of least resistance is to the upside.
If the bears are to gain the upper hand, they will need to drag the price back below the moving average. This may not be an easy task, but if successfully completed, the pair could fall to $280.
The 4-hour chart shows bulls buying dips to the 20-EMA. The bears tried to stop the rally at $338, but the bulls broke through that resistance. Buyers will try to push the pair to $346. If this level retreats, the pair may continue its uptrend.
Alternatively, if the price turns around and breaks below the 20-EMA, it will mean that short-term bulls can take profits on a rally. The pair could then drop to $318 where buyers could step in to stop the decline.
Related: Peter Schiff blames “too much government regulation” for worsening the financial crisis.
Analysis of reservoir prices
Stacks (STX) rose from $0.52 on March 10 to $1.29 on March 18, a sharp rise in a short period of time. This suggests aggressive bull buying.
The STX/USDT pair is witnessing profit booking near $1.29, but the positive sign is that the bulls have not given way to the bears much. This suggests that minor dips are being bought. In a strong uptrend, corrections usually last one to three days.
If the price turns around and breaks above $1.29, the pair could resume its uptrend. The next stop on the upside 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. This could clear the way for a decline to the 20-day EMA ($0.84).
The pair corrected to the 20-EMA. This is an important level that the bulls must defend if they want to continue their upward move. If the price rebounds from the 20-EMA, the pair could retest the overhead resistance at $1.29. If the bulls break this barrier, the next part of the uptrend may begin.
Conversely, if the bears sink the price below the 20-EMA, the pair could drop to $1 and then the 50 simple moving average. A deeper correction can delay the resumption of upward movement and keep the pair in a range for several days.
Fixed price analysis
Immutable (IMX) broke above overhead resistance at $1.30 on March 17, completing the H&S inversion formation. This indicates the beginning of a potential new uptrend.
Meanwhile, the price may retest the $1.30 breakout level. If the price rebounds from this level with strength, it will indicate that the bulls have flipped the level into support. Buyers will then try to push the price above $1.59 and resume the uptrend. The IMX/USDT pair may then rise to $1.85 and later to $2. The reversal setup target pattern is $2.23.
This bullish view could be reversed in the near future if the price falls below the moving average. Such a move will indicate that a break above $1.30 may have been a bull trap. The pair could then drop to $0.80.
The pair is witnessing a slight correction finding support at the 20-EMA. Buyers are trying to clear the overhead barriers at $1.59, but the bears are not backing down. If the price breaks below the 20-EMA, the downside could reach $1.30.
Another possibility is that the price bounces off the 20-EMA. This will mean solid demand at the lower levels and increase the prospects for a break above $1.59. If this happens, the pair may resume its uptrend.
This article does not contain investment advice or recommendations. Every investment and trading step involves risk and readers should do their own research when making decisions.