Bitcoin (BTC) experienced some profit-taking in recent days, but the bears were unable to push the price below $64,500. However, if history repeats itself, Bitcoin may face renewed selling pressure.
According to crypto analyst Rekt Capital, Bitcoin is about to enter the “Danger Zone” period, which typically leads to corrections. This period occurs 14 to 28 days before the halving, which is expected to occur on April 20 in this cycle. In 2020, Bitcoin fell by 20% during this period, while in 2016, the correction was 40%.
Analysts will closely monitor the inflows into spot Bitcoin exchange-traded funds (ETFs) to gauge the strength of the uptrend. If inflows remain steady during a pullback in Bitcoin, it suggests that the uptrend is likely to continue. However, if inflows significantly decrease, it may delay the next leg of the uptrend.
Let’s analyze the charts to identify the important support levels for Bitcoin and altcoins.
S&P 500 Index:
The S&P 500 Index saw a decline from 5,180 last week but found support at the ascending channel pattern’s support line. If the bulls manage to push the price above the overhead resistance of 5,189, the index may climb to the channel’s resistance line. However, strong selling pressure is expected at this level. On the downside, a break below the 20-day exponential moving average (5,100) could lead to a decline towards the 50-day simple moving average (4,972).
U.S. Dollar Index:
The U.S. Dollar Index (DXY) has pulled back to the moving averages, indicating strong buying at lower levels. The flattening of both moving averages and the RSI near the midpoint suggest a balance between supply and demand. If the price stays above the moving averages, the index could rise to 105, where strong defense from bears is expected. On the other hand, a turn down from the moving averages could lead to another attempt by bears to push the index to 102. A break below this level may result in a drop to 101.
Bitcoin:
Bitcoin bounced off the 20-day EMA ($65,830) on March 17, indicating that the bulls continue to buy at strong support levels. The BTC/USDT pair faces resistance at the breakdown level from the ascending channel pattern. If the price breaks below the 20-day EMA, it will signal that the bears have turned the channel’s support line into resistance, increasing the risk of a fall to $59,000. On the other hand, if the bulls push the price back into the channel, it suggests a rejection of the breakdown, and they will aim to drive the pair to $73,777. A break above this level may open doors for a potential rise to $80,000.
Ether:
Ether (ETH) fell below the 20-day EMA ($3,619) on March 16, but the bears are struggling to sustain lower levels. If the bulls manage to push the price back above the 20-day EMA, the ETH/USDT pair could attempt a rally towards the overhead resistance of $4,093, indicating a resumption of the uptrend. However, a turn down and a break below $3,400 may suggest a negative sentiment and a slide towards $3,200 and later to the 50-day SMA ($3,077).
Solana:
Solana (SOL) has been in a strong uptrend, with no signs of a slowdown. The bulls aggressively bought the dip when the bears attempted a pullback on March 15. The price has reached the overhead resistance of $205, which may pose a challenge. If the bulls succeed, the SOL/USDT pair could aim for the all-time high of $260. However, the RSI in the overbought territory suggests a possible consolidation or correction in the short term. The support to watch on the downside is the 20-day EMA ($156). A break below this level may indicate a short-term trend change.
BNB:
BNB has pulled back in a strong uptrend, but the bulls have prevented the price from dipping below the 38.2% Fibonacci retracement level of $534. The rising moving averages and the RSI in positive territory indicate that the bulls have the upper hand. If the price rises above $591, the BNB/USDT pair could retest the overhead resistance at $645. However, a turn down and a break below $534 may suggest that bears are taking control, leading to a tumble towards the 20-day EMA ($509) and potentially $460.
XRP:
XRP slipped below the 20-day EMA ($0.62) on March 16, indicating a weakening bullish grip. The bulls attempted a recovery on March 17 but failed to clear the overhead hurdle at the 20-day EMA. The price turned lower, suggesting bearish activity at higher levels. The XRP/USDT pair could dive to the uptrend line. However, if the bulls push the pair above the 20-day EMA, it could start a robust recovery towards $0.67 and later to the overhead resistance at $0.74.
Cardano:
Cardano bounced off the 50-day SMA ($0.62) on March 17, but the bulls are struggling to push the price above the 20-day EMA ($0.70) on March 18. A turn down from the 20-day EMA confirms selling by bears. A break below the 50-day SMA may lead to a drop to $0.57. However, if the price rises and breaks above the 20-day EMA, the bulls will attempt to propel the price to the overhead resistance of $0.81, and a break above this level may start a rally towards $0.92.
Avalanche:
Avalanche rebounded sharply from the $50 level on March 17, indicating aggressive buying at lower levels. The bulls pushed the price above the overhead resistance of $61.50, suggesting the start of the next leg of the uptrend. If the breakout is sustained, the AVAX/USDT pair could climb to $87. However, if the price fails to maintain above $61.50, it may indicate a lack of demand at higher levels, leading to a range-bound movement between $50 and $62.
Dogecoin:
Dogecoin plummeted below the $0.15 support on March 16, indicating bearish control. Although the bulls pushed the price back above the 20-day EMA ($0.15) on March 17, they were unable to sustain the recovery. The bears are attempting to sink the price below $0.14. If successful, the DOGE/USDT pair could slide to the 50-day SMA ($0.11). On the other hand, maintaining the price above $0.16 may keep the pair within the $0.15 to $0.19 range for some time.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment decisions.