Bitcoin (BTC) is on track to close out the week with gains of over 23%. The banking crisis in the United States and Europe appears to have boosted Bitcoin buying, indicating that the leading cryptocurrency is behaving as a safe haven asset in the short term.
All eyes are on the Federal Reserve meeting on March 21-22. The US bank failure has raised hopes that the Fed will not raise rates at the meeting. The CME FedWatch tool shows a 38% probability of a pause and a 62% probability of a 25 basis point rise in the rate on March 22nd.
Analysts are divided on the consequences of the current crisis on the economy. Former Coinbase chief technology officer Balaji Srinivasan believes the US will enter a period of hyperinflation, while Twitter user pseudonym James Medlock believes otherwise. Srinivasan plans to make a million-dollar bet with Medlock and someone else that the price of Bitcoin will reach $1 million by June 17th.
While anything is possible in the cryptocurrency markets, traders must be prudent in their trading and not get carried away with lofty goals.
Let’s study Bitcoin and altcoin charts that are showing signs of resuming upward movement after a minor correction.
bitcoin price analysis
Bitcoin surged above the $25,250 resistance on March 17, completing an inverse bullish head and shoulders (H&S) pattern.
Typically, a breakout of a major setup returns to retest the breakout level, but in some cases, the rally continues unabated.
The 20-day rising exponential moving average ($24,088) and the relative strength index (RSI) in overbought territory indicate upside for the bulls. If the price breaks above $28,000, the rally can pick up momentum and move up to $30,000 and later to $32,000. This level is likely to witness strong selling by the bears.
Another possibility is that the price turns down from the current level but reclaims $25,250. This will also keep the uptrend intact.
The positive view will be invalidated in the short term if the price dips below the moving averages. Such a move suggests that the break above $25,250 might have been a bull trap. This could open the door for a possible drop to the psychologically critical $20,000 level.
The 4-hour chart shows that the BTC/USDT pair is facing a profit reserve near $27,750, but a positive sign is that the pullback was shallow. Buyers will try to push the price above $28,000 and resume the uptrend. The pair could then rally to $30,000.
On the other hand, if the price turns down and falls below the 20 EMA, it suggests that traders are rushing to exit. This could drive the price down to the important $25,250 support where the bulls and bears could witness an uphill battle.
Ether price analysis
The bulls broke the $1,800 resistance on March 18 but failed to sustain the higher levels. This shows that the bears are protecting the $1,800 level on Ether (ETH) with vigor.
The critical support to watch on the downside is the zone between $1,680 and the 20-day EMA ($1,646). If price recovers from this zone, it will signal that sentiment has turned positive and traders are buying on dips.
Buyers will again try to resume the uptrend and drive the price towards the next target target of $2,000. This level can be a big hurdle for bulls to cross.
On the contrary, if the price turns down and falls below the moving averages, it will suggest that the bulls are losing control. The ETH/USDT pair can drop to $1,461.
The 4-hour chart shows that the pair has reclaimed the support at $1,743. This suggests that the bulls are buying the shallow dips and not expecting a deeper correction. Buyers will next try to push the price above $1,841. If this level is removed, the pair could run towards $2,000.
On the contrary, if the price turns down and falls below $1,743, short-term traders can book profits. The pair could then slide towards the next major support at $1,680.
BNB price analysis
BNB (BNB) rose above $338 on March 18, which invalidated the bearish H&S pattern. Typically, when a bear pattern fails, it attracts buying by bulls and short covering by bears.
The onus is on the bulls to keep the price above the immediate support at $318. If they manage to do this, the BNB/USDT pair can first rise to $360 and then shoot up to $400. days ($309) and the RSI near the overbought territory indicate that the path of least resistance is to the upside.
If the bears want to gain the upper hand, they will have to pull the price back below the moving averages. This might not be an easy task, but if successfully completed, the pair could drop as low as $280.
The 4-hour chart shows that the bulls are buying the dips to the 20-EMA. The bears tried to halt the rally at $338, but the bulls broke through this resistance. Buyers will try to push the pair towards $346. If this level breaks, the pair could continue its uptrend.
Alternatively, if the price turns down and breaks below the 20-EMA, it will suggest that short-term bulls may be taking profits on rallies. The pair can then drop to $318 where buyers can step in to halt the decline.
Related: Peter Schiff blames ‘too much government regulation’ for worsening financial crisis
Batteries price analysis
Stacks (STX) rose from $0.52 on March 10th to $1.29 on March 18th, a sharp run in a short time. This suggests aggressive buying by the bulls.
The STX/USDT pair is posting profits near $1.29, but a positive sign is that the bulls have not given up much ground to the bears. This suggests that minor dips are being bought. Typically, in a strong uptrend, corrections last from one to three days.
If the price rises 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 breakout and close below $1. This could pave the way for a drop to the 20-day EMA ($0.84).
The pair corrected to the 20-EMA. This is an important level for the bulls to defend if they want to resume the upward move. If the price rebounds from the 20 EMA, the pair could retest the overhead resistance at $1.29. If the bulls break through this hurdle, the next leg of the uptrend can begin.
On the other hand, if the bears sink the price below the 20 EMA, the pair could drop 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 trapped. within a range of a few days.
Immutable price analysis
Immutable (IMX) surged above the $1.30 overhead resistance on March 17, which completed the H&S inverse formation. This suggests the start of a new potential uptrend.
Meanwhile, the price could retest the $1.30 breakout level. If the price bounces back from this level strongly, it will suggest that the bulls have turned the level into a support. Buyers will try to push the price above $1.59 and resume the uptrend. The IMX/USDT pair can then move up to $1.85 and then to $2. The default target of the reversal setup is $2.23.
This positive view could be negated in the short term if the price dips below the moving averages. Such a move suggests that the break above $1.30 may have been a bull trap. The pair can then drop to $0.80.
The pair is witnessing a slight correction which finds support at the 20-EMA. Buyers are trying to clear the $1.59 hurdles, but the bears are not giving in. If the price turns down below the 20 EMA, the pullback can reach $1.30.
Another possibility is that the price will rebound from the 20-EMA. This will indicate solid demand at lower levels and add to the prospects for a break above $1.59. If that happens, the pair could resume its uptrend.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.