Bitcoin’s recent decline has not affected the demand for spot Bitcoin exchange-traded funds (ETFs). After experiencing net outflows for five consecutive days last week, ETFs saw a significant bounce back with $418 million in net inflows on March 26 and $243 million on March 27, according to data from Farside Investors.
Larry Fink, the CEO of BlackRock, expressed his surprise and satisfaction with the performance of the firm’s spot Bitcoin ETF, which he described as the “fastest growing ETF in the history of ETFs.” Fink also stated that he has a strong belief in the long-term potential of Bitcoin.
CryptoQuant, an on-chain analytics platform, reported in its latest “Weekly Crypto Report” that the demand for Bitcoin has surged from 40,000 Bitcoin at the beginning of 2024 to 213,000 Bitcoin on March 26. This increase in demand could lead to a potential “sell-side liquidity crisis” within the next year.
The question now is whether Bitcoin will continue its recovery and reach a new all-time high before the Bitcoin halving. This could potentially trigger buying in altcoins. Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis:
Despite witnessing profit booking on March 26 and 27, Bitcoin managed to maintain its price above the pennant, which is a positive sign. The 20-day exponential moving average (EMA) has started to turn up, and the relative strength index (RSI) is in the positive territory, indicating that the path of least resistance is towards the upside. If the price surpasses $73,777, it is likely to gain momentum and rally to $80,000. On the contrary, a drop below the 20-day EMA could lead to a potential drop to the 50-day simple moving average.
Ether Price Analysis:
Ether is facing selling pressure near $3,678, but the bulls are attempting to defend the 20-day EMA. If the price breaks above $3,678, it could rally to $4,100, with potential resistance at $4,500 and $4,868. However, a sharp downturn and a break below $3,460 would suggest that the bears are not ready to give up, potentially leading to a deeper correction.
BNB Price Analysis:
BNB is facing resistance at the 61.8% Fibonacci retracement level of $588. If the price turns down from this level, it could drop to the 20-day EMA at $546, which is a critical level to monitor. A rebound from the 20-day EMA would indicate another attempt to rise above $600 and reach $645. However, a drop below the 20-day EMA would signal bearish strength and could lead to a decline to the critical support at $495.
Solana Price Analysis:
Solana’s recovery is faltering at $196, suggesting that the bears are selling near the overhead resistance of $205. The bears will attempt to pull the price to the 20-day EMA at $173, a crucial level to watch. A plunge below the 20-day EMA would indicate bearish control and could result in a decline to $162 and potentially the 50-day SMA at $140. On the other hand, a rebound from the current level or the 20-day EMA would indicate strong demand at lower levels and enhance the chances of a break above $205.
XRP Price Analysis:
XRP has been trading within the range of the uptrend line and $0.67, suggesting indecision in the market. The price’s position below the 20-day EMA indicates a potential drop to the uptrend line, but a strong rebound from this level would suggest continued range-bound action. The next significant move is likely to occur on a break above $0.67 or below the uptrend line. Above $0.67, the pair could rally to $0.74, while below the uptrend line, the pair could drop to $0.52.
Cardano Price Analysis:
Cardano has been struggling to break above $0.68, as indicated by the long wick on its March 26 candlestick. If the price remains below the moving averages, it suggests that the pair could trade between $0.57 and $0.68 for some time. The flattening 20-day EMA and the RSI near the midpoint indicate a consolidation in the near term. However, a break above $0.70 would indicate the return of bullish momentum, with a potential rally to $0.81. On the downside, a break below the uptrend line could lead to a decline to $0.52.
Dogecoin Price Analysis:
Dogecoin rallied above the $0.19 to $0.21 resistance zone on March 28, signaling aggressive buying by the bulls. The upsloping moving averages and the overbought RSI indicate bullish control. A minor resistance at $0.23 could be encountered, but if buyers push through, the pair could rally to $0.30 and $0.35. However, a quick pullback below $0.19 by the bears would trap aggressive bulls and could result in a decline to the 20-day EMA.
Avalanche Price Analysis:
Avalanche’s price action has formed a pennant, indicating indecision between the bulls and the bears. The upsloping 20-day EMA and the positive RSI give a slight advantage to the buyers. If the support line of the pennant is defended, the pair could resume its uptrend and reach $65 and later $76. However, a break below the pennant would suggest bearish strength and could lead to a drop to $50.
Shiba Inu Price Analysis:
Shiba Inu’s recovery broke above the resistance line on March 26, indicating a reduction in selling pressure. The pair is likely to rise to $0.000035, where the bears are expected to defend. A break above this level could open the doors for a possible rise to $0.000039. However, if the price turns down and breaks below the 20-day EMA, it would suggest that the break above the resistance line may have been a bull trap. The pair could then drop to the 50-day SMA.
Toncoin Price Analysis:
Toncoin is correcting within an uptrend, finding support at the 38.2% Fibonacci retracement level. The upsloping moving averages give an advantage to the bulls, but the developing negative divergence on the RSI suggests a possible consolidation or correction in the short term. A drop below $4.78 would indicate selling on rallies, potentially leading to a decline to the 20-day EMA. On the other hand, a sustained rebound could lead to a rally towards the overhead resistance at $5.69.
Please note that this article does not provide investment advice or recommendations. It is essential to conduct thorough research and analysis before making any investment decisions.