Bitcoin bulls are maintaining their advantage as the price of BTC surpasses $70,000, indicating strong demand from traders. Bitwise chief investment officer, Matt Hougan, has stated that professional investors are eagerly waiting to buy Bitcoin exchange-traded funds (ETFs). Despite this, there is still significant demand for Bitcoin ETFs, with data from Dune showing that these ETFs now hold 4.06% of the current Bitcoin supply. If the buying continues at the same pace, it is projected that ETFs will hold 8.65% of the Bitcoin supply on an annual basis.
MicroStrategy, the founder and chairman, Michael Saylor, announced that the company has purchased 12,000 Bitcoin at an average price of $68,477 using funds from an $800 million convertible note offering. With this latest purchase, MicroStrategy’s Bitcoin holdings now stand at 205,000 Bitcoin, acquired at an average price of $33,706 per Bitcoin.
It is important for traders to closely monitor the inflows of Bitcoin ETFs as a sustained slowdown could negatively impact sentiment and lead to a correction. Let’s analyze the charts to identify the key support levels to watch for Bitcoin and altcoins.
S&P 500 Index:
The S&P 500 Index has been trading within an ascending channel pattern, but the recent rejection from the resistance line suggests that bears are defending this level. Although the moving averages indicate an advantage for buyers, the negative divergence on the relative strength index (RSI) warrants caution. If the price falls below the channel, selling pressure could increase, potentially leading to a drop to the 50-day simple moving average.
U.S. Dollar Index:
The U.S. Dollar Index (DXY) has struggled to rise above the 20-day exponential moving average (EMA) and sellers have pushed the price below the 50-day simple moving average. The moving averages are on the verge of a bearish crossover, indicating that bears have the upper hand. The index could decline further to 102 and eventually to 101. A recovery attempt may face resistance at the 20-day EMA, and only a rise above this level would suggest a reduction in selling pressure.
Bitcoin:
Bitcoin faced resistance at $70,000 over the weekend but managed to break through on March 11, indicating strong demand from bulls. The rising moving averages and overbought RSI signal that buyers are in control. The BTC/USDT pair could reach $76,000 and subsequently $80,000, although this zone is likely to provide strong resistance. A break and close below the 20-day EMA would signal profit booking by bulls and potentially trigger a deeper pullback.
Ether:
Ether experienced a pullback towards the $3,600 breakout level, but aggressive buying at lower levels resulted in a push above the psychological level of $4,000. This opens the door for a rally to $4,372, followed by $4,868. However, the deep overbought territory on the RSI suggests caution, and a break below the 20-day EMA could initiate a corrective phase.
BNB:
BNB has been in a strong uptrend and reached $460. The next resistance level at $560 may pose a challenge in the short term, but if bulls hold their ground, the uptrend could continue to $617. The critical support levels are $460 and the 20-day EMA at $433. A break below the 20-day EMA would indicate a potential end to the uptrend.
XRP:
XRP showed solid buying at lower levels, pushing the price above the immediate resistance at $0.67. The next major resistance level is $0.74, and a breakthrough would signal the start of a new uptrend, potentially pushing the price to $0.85 and $0.95. However, if the price turns down from $0.74, it suggests bearish activity at higher levels, and the support at $0.67 becomes crucial.
Solana:
Solana has been consolidating within a range between $126 and $153. The lack of sellers and shallow pullbacks indicate that bulls are still in control. If buyers push the price above $153, the uptrend could resume and reach $184. On the other hand, a break below the breakout level of $126 may open the door for a drop to the 50-day SMA at $110.
Cardano:
Cardano dipped to the breakout level of $0.68 but saw strong buying at lower levels. The positive slope of the 20-day EMA and the RSI in positive territory suggest that the path of least resistance is to the upside. Buyers will aim to propel the price to the March 4 high of $0.80, and if that level is surpassed, the rally could extend to $0.90 and $1.25. However, a break below $0.68 would invalidate this bullish view and indicate a comeback by bears.
Dogecoin:
Dogecoin has been fighting to stay above the breakout level of $0.16. The rising 20-day EMA and overbought RSI suggest that bulls have the upper hand. If buyers can maintain the price above $0.000018, the DOGE/USDT pair could retest $0.21 and potentially rally to $0.26. Conversely, a break below $0.16 would suggest bearish activity, with the 20-day EMA serving as a critical support level.
Shiba Inu:
Shiba Inu has been consolidating within a range between $0.000029 and $0.000039, cooling down after a sharp rally. A break below the range could lead to a slide towards the 20-day EMA at $0.000024. On the other hand, a break above $0.000039 would indicate the return of bullish sentiment, potentially pushing the price to $0.000046 and $0.000065.
It is 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.