Bitcoin (BTC) had a volatile week, reaching a new all-time high of $73,777 before dropping to around $64,500. At the end of the week, Bitcoin is expected to be down about 1% compared to the previous week’s close. Analysts believe that lower levels will attract strong buying from spot Bitcoin exchange-traded fund investors, leading to a shallow correction. Thomas Fahrer, CEO of crypto-focused reviews portal Apollo, referred to the fall as a “Bear Trap.”
The rebound in Bitcoin’s price will determine whether the correction is over or not. A weak recovery suggests continued selling pressure from bears and increases the possibility of a deeper pullback. Conversely, a strong bounce indicates aggressive buying at lower levels and enhances the potential for an uptrend continuation.
Now, let’s take a look at the top 5 cryptocurrencies that appear strong on the charts and whether Bitcoin’s correction will pave the way for a recovery in select altcoins.
Bitcoin Price Analysis:
Bitcoin experienced a sharp correction from $73,777 on March 14 and broke below the support line of the ascending channel pattern on March 16. The bulls are attempting to stall the decline at the 20-day exponential moving average ($65,564), but they may face resistance at the breakdown level from the channel. If the price sharply turns down from the current level, the risk of a fall increases. In case the 20-day EMA is breached, the BTC/USDT pair could drop to $59,000 and then to the 50-day simple moving average ($55,303). To prevent the downside, bulls need to push the price back inside the channel, indicating strong buying at lower levels. A break and close above $73,777 will signal the resumption of the uptrend, with the pair potentially rallying to $80,000.
Near Protocol Price Analysis:
Near Protocol (NEAR) has pulled back during an uptrend, indicating profit-booking by short-term traders. The NEAR/USDT pair is finding support near the 50% Fibonacci retracement level of $6.28, which is a positive sign for bulls. If the rebound holds, the pair may retest the overhead resistance of $9.01, and a breakthrough could resume the uptrend with a target of $10.50. However, if the price turns down from the overhead resistance, it will indicate selling on rallies, and the pair may decline to the 20-day EMA ($6.18), a crucial support level that could trigger a deeper correction.
Aptos Price Analysis:
Aptos (APT) experienced a sharp decline from $15.70 on March 16 but found support above the 20-day EMA ($12.90), indicating buying at lower levels. The rising 20-day EMA ($12.83) and positive RSI suggest that bulls have the upper hand. To confirm the start of the next leg of the uptrend, buyers need to maintain the price above $15.70. This would push the APT/USDT pair to $16.75 and eventually to $18.69. However, if the price turns down and breaks below the 20-day EMA, it will indicate that relief rallies are being sold and may mark the beginning of a corrective phase with a potential decline to the 50-day SMA ($10.73).
Render Price Analysis:
Render (RNDR) corrected to the 20-day EMA ($10.02), but the bulls defended the support, indicating positive sentiment and buying on dips. The break above the $12.78 resistance on March 17 suggests the start of the next leg of the uptrend. Maintaining the price above $12.78 could push the RNDR/USDT pair to $16.81. However, a drop below the solid support at $12 would signal weakness and an opportunity for bears to initiate a correction. Breaking and closing below the 20-day EMA may accelerate selling, with the pair potentially sinking to the 50-day SMA ($7.09).
Maker Price Analysis:
Maker (MKR) resumed its uptrend on March 17 after a period of consolidation, indicating continued bullish control. The MKR/USDT pair could rise to $3,580 and potentially reach $4,000, where strong resistance could be encountered. A slide below $2,976 would indicate weakness and rejection of higher levels, potentially leading to a decline to the 20-day EMA ($2,525) as a crucial level to watch. The 4-hour chart shows that sustaining the pair above the ascending channel pattern would support further upside momentum toward $3,725. However, a failure to sustain above the channel may indicate a bull trap, with a possible drop back into the channel and a likely decline to the support line.
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.