Bitcoin (BTC) reached a new high above $69,200 on March 5 but then experienced a significant sell-off, causing the price to drop below $60,000. This sell-off resulted in $1.17 billion in cross-crypto liquidations, according to Coinglass. Despite the fall, investors continued to buy spot Bitcoin exchange-traded funds, with a net inflow of $648.9 million into Bitcoin ETFs, and BlackRock’s iShares Bitcoin Trust (IBIT) ETF recording its highest inflow of $788 million. This indicates a strong appetite for Bitcoin, which could result in shallow corrections if maintained.
When markets are rising sharply, traders often take on too much leverage, which can be risky if they are not skilled at managing losses. Therefore, it is important for traders to remain cautious and follow trading rules when using leverage.
The question now is whether Bitcoin will continue its uptrend, pulling altcoins higher, or if the cryptocurrency market will enter a consolidation phase. Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin has been in a strong uptrend for several days, with traders viewing dips as buying opportunities. The recent drop to the 20-day exponential moving average ($58,131) was aggressively bought by bulls, indicating solid demand at lower levels. If the bulls succeed in pushing the price above $69,000, the BTC/USDT pair could start the next leg of the uptrend to $76,000 and then $80,000. However, if the bears manage to yank the price below the 20-day EMA, a correction could occur with a potential drop to the 50-day simple moving average ($49,107).
Ether (ETH) jumped above the $3,600 resistance but faced strong selling pressure. However, buyers stepped in at the 20-day EMA ($3,233), suggesting a positive sentiment. If the bulls can maintain the price above $3,822, the ETH/USDT pair could rally to $4,000 and then $4,150. On the other hand, a failure to sustain above $3,600 could result in a deeper pullback to the 20-day EMA.
BNB turned down from the $427 resistance but found support at the 20-day EMA. Buyers are trying to maintain the price above $427, which could lead to a rally to $460. However, a failure to sustain above $427 would indicate bearishness and increase the likelihood of a fall to the 50-day SMA ($341).
Solana reversed direction from the $143 resistance and fell to the 50-day SMA. The bulls aggressively protected the 50-day SMA and have pushed the price above $126. If they can overcome the barrier at $143, the SOL/USDT pair could start the next leg of the up move to $158. However, a failure to do so could result in another slide to the 50-day SMA.
XRP turned down from $0.67, indicating strong defense from bears. The price rebounded off the 50-day SMA ($0.55), suggesting continued buying on dips. The XRP/USDT pair will make another attempt to clear the overhead hurdle at $0.67 and potentially reach $0.74. On the other hand, a defense of the $0.67 level by bears could result in a range-bound action between the 50-day SMA and $0.67.
Cardano turned down from $0.80 but found support at the 50-day SMA. The bulls aggressively bought the dip and the price closed above the breakout level of $0.68, indicating a bullish sentiment. If the price rises, the ADA/USDT pair could reach the overhead resistance of $0.80. However, a turn down and close below the 20-day EMA could invalidate the positive sentiment and result in a drop to the 50-day SMA.
Dogecoin rose above the $0.16 resistance but struggled to sustain the breakout. Buyers are trying to maintain the price above $0.16, while sellers continue to sell on rallies. If the price turns down, the DOGE/USDT pair may slump to the 20-day EMA, where buyers are likely to step in. On the other hand, if buyers sustain the price above $0.16, the pair could retest the local high at $0.20 and potentially reach $0.30.
Shiba Inu experienced a strong bull run but faced selling pressure at higher levels. The price dropped to $0.000025 but was aggressively purchased, indicating strong demand on dips. The SHIB/USDT pair may remain range-bound between $0.000025 and $0.000045 for a few days, with a possibility of correction or consolidation in the near term.
Avalanche failed to start an uptrend after completing the inverse head-and-shoulders pattern, leading to short-term traders dumping their positions. The pair dropped below the 50-day SMA but quickly recovered, with buyers pushing the price back above the $42 resistance. If the bulls sustain levels above $44, the pair could retest the psychological resistance at $50.
Polkadot surged to $10.76 but faced profit booking. The price dropped below the 20-day EMA but attracted buyers at lower levels. If the bulls can sustain the higher levels and clear the overhead resistance at $10.80, the DOT/USDT pair could rise further. However, the pair may consolidate between the 20-day EMA and $10.80 for a while.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment decisions.