Bitcoin (BTC) is poised to end the week up more than 23 percent. The banking crisis in the US and Europe seems to have increased the buying of Bitcoin, indicating that the leading cryptocurrency will behave as a safe haven in the near future.
All eyes will be on the Federal Reserve meeting on March 21st and 22nd. The failure of US banks has raised hopes that the Fed will not raise interest rates at the meeting. The CME FedWatch Tool shows a 38 percent chance of a pause and a 62 percent chance of a 25 basis point rate hike on March 22.
Analysts are divided about the consequences of the current crisis on the economy. Coinbase’s former CTO Balaji Srinivasan believes the US is entering an era of hyperinflation, while pseudonymous Twitter user James Medlock believes otherwise. Srinivasan plans to make a millionaire bet with Medlock and another person that the price of Bitcoin will reach $1 million by June 17.
Although anything is possible in the crypto market, traders should be careful in their trading and not lose sight of lofty goals.
Let’s examine Bitcoin and altcoin charts showing signs of continued uptrend after minor correction.
Bitcoin Price Analysis
Bitcoin broke above the $25,250 resistance on March 17, completing a bullish reversal head and shoulders (H&S) pattern.
Usually the breakout from the big setup returns to retest the breakout level, but in some cases the rally continues unabated.
A rising 20-day exponential moving average ($24,088) and a relative strength index (RSI) in overbought territory indicate an advantage for buyers. If the price breaks above $28,000, the rally may accelerate to $30,000 and then $32,000. This level is likely to witness strong bear selling.
Another possibility is that the price turns down from the current level but rises above $25,250. This also keeps the uptrend intact.
The positive view will be invalidated in the near future if the price falls below the moving average. Such a move suggests that a break above $25,250 may have been bullish. It could open the doors for a possible drop to the psychologically critical $20,000 level.
The 4-hour chart shows that BTC/USDT has profit booking near $27,750, but a positive sign is that the pullback has been shallow. Buyers will try to push the price above $28,000 and continue to rise. The pair can then go up to $30,000.
On the other hand, if the price turns down and drops below the 20-EMA, it suggests that traders are rushing out. This could bring the price down to $25,250, where the bulls and bears could witness a fierce battle.
Ether price analysis
The bulls broke through the $1,800 resistance on March 18, but were unable to sustain higher levels. This shows that the bears are protecting the $1,800 level in Ether (ETH) vigorously.
The critical support to watch on the downside is the zone between $1,680 and the 20-day EMA ($1,646). If the price rises from this zone, it indicates that the sentiment has turned positive and traders are buying bills.
Buyers will then again try to continue the uptrend and drive the price towards the next target target of $2,000. This level could prove to be a major obstacle for the bulls to overcome.
Conversely, if the price turns down and falls below the moving average, it suggests that the bulls are losing their grip. The ETH/USDT pair may then fall to $1,461.
The 4-hour chart shows that the pair bounced off the support at $1,743. This suggests that bulls are buying low dips and not waiting for a deeper correction to enter. Buyers will next try to push the price above $1,841. If that level is removed, the pair could Sprint toward $2,000.
Conversely, if the price turns lower and falls below $1,743, short-term traders can book profits. The pair can then slide to the next important support at $1,680.
BNB price analysis
BNB (BNB) broke above $338 on March 18, invalidating a bearish H&S pattern. Usually, when a bearish pattern fails, it is tempting to buy from the bulls and short cover the bears.
The bulls have an obligation to keep the price above the immediate support at $318. If they manage to do that, the BNB/USDT pair could first rise to $360 and then climb towards $400. The rising 20-day EMA ($309) and the RSI near overbought territory indicate that the least resistance is to the upside.
If the bears want to gain the upper hand, they need to crumple the price back below the moving average. This may not be an easy task, but if successfully completed, the pair can drop to $280.
The 4-hour chart shows that bulls are buying dips in the 20-EMA. The bears tried to stop the rally at $338, but the bulls have pierced this resistance. Buyers are trying to push the pair up to $346. If this level gives way, the pair can continue its uptrend.
Alternatively, if the price turns lower and breaks below the 20-EMA, it suggests that short-term bulls can book profits in a rally. The pair could then fall to $318, allowing buyers to intervene on the decline.
Related: Peter Schiff blames “too much government regulation” for worsening the financial crisis
Stack price analysis
Stacks (STX) went from $0.52 on March 10 to $1.29 on March 18, a sharp rise in a short period of time. This suggests aggressive buying by bulls.
The STX/USDT pair is witnessing profit booking near $1.29, but a positive sign is that the bulls have not ceded much ground to the bears. This suggests that small dips are being bought. Usually, in a strong uptrend, corrections last one to three days.
If the price rises and breaks above $1.29, the pair can continue its uptrend. The next upside stop is likely to be $1.55 and then $1.80.
The first sign of weakness on the downside is a break and close below $1. This could clear the path for a drop to the 20-day EMA ($0.84).
The pair has corrected to the 20-EMA. This is an important level for the bulls to defend if they want to continue the upward movement. If the price bounces off the 20-EMA, the pair may retest the upper resistance at $1.29. If the bulls break this barrier, the next phase of the uptrend may begin.
On the other hand, if the bears lower the price below the 20-EMA, the pair can slide to $1 and then to the 50 simple moving average. A deeper correction may delay the continuation of the upward movement and keep the pair stuck within the range for a few days.
Fixed price analysis
Immutable (IMX) skyrocketed above $1.30 overhead resistance on March 17, completing an inverted H&S formation. This suggests the beginning of a possible new uptrend.
At the same time, the price may retest the breakout level of $1.30. If the price rises sharply from this level, it suggests that the bulls have turned the level into support. Buyers will then try to push the price above $1.59 and continue the uptrend. The IMX/USDT pair may then rise to $1.85 and later to $2. The pattern target for the reversal setup is $2.23.
This positive view can be reversed in the near future if the price falls below the moving average. Such a move suggests that a break above $1.30 may have been bullish. The pair may then drop to $0.80.
The pair is witnessing a mild correction that finds support at the 20-EMA. Buyers are trying to break the barriers at $1.59, but the bears are not giving up. If the price falls below the 20-EMA, a retracement could reach $1.30.
Another possibility is that the price will rise from the 20-EMA. This shows solid demand at the lower levels and improves the chances of getting above $1.59. If this happens, the pair can continue its uptrend.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should do their own research when making a decision.