Bitcoin (BTC) has been moving sideways recently, indicating a battle between buyers and sellers. The question on every crypto investor’s mind is whether sellers will overpower buyers and start a short-term correction, or if buyers will come out on top.
The diminishing hopes of an early rate cut by the Federal Reserve have led to profit booking in the S&P 500 Index. This could signal a risk-off sentiment in the near future, increasing the risk of a pullback in Bitcoin and select altcoins.
However, this dip may not change the long-term bullish outlook. Investors are likely to see every dip as a buying opportunity due to Bitcoin’s upcoming halving in April, which has historically been a bullish event.
Let’s analyze the charts of the top 10 cryptocurrencies to identify the important support levels that could prevent further decline.
Bitcoin Price Analysis:
Bitcoin is struggling to stay above $52,000, indicating strong resistance from bears. If the price falls below $50,000, short-term traders may book profits, pulling the price down to the 20-day exponential moving average ($48,842). A rebound from this level would indicate positive sentiment and increase the likelihood of a rally above $52,000, potentially reaching $60,000. However, if the price continues to decline and breaks below the 20-day EMA, a pullback to the 50-day simple moving average ($44,924) may occur.
Ether Price Analysis:
Ether (ETH) faced resistance at $3,000 and saw profit booking from short-term traders. A crucial support level is $2,717. If the price rebounds strongly from this level, it would indicate aggressive buying on dips and enhance the chances of a break above $3,000, with a potential rally to $3,300. Conversely, if bears push the price below the 20-day EMA ($2,680), a deeper correction to the 50-day SMA ($2,467) could occur.
BNB Price Analysis:
BNB turned up after a brief correction, breaking above the $367 resistance. This indicates a resumption of the uptrend. The moving averages and the RSI in the overbought zone suggest that bulls are in control. If the price stays above $368, the BNB/USDT pair could gain momentum and surge toward $400. The first support is at the 20-day EMA ($336), followed by the 50-day SMA ($315). A break below the 50-day SMA would indicate a trend change.
Solana Price Analysis:
Solana’s rebound halted at $115, and the price turned down, signaling weak demand at higher levels. The bears broke below the neckline of the inverse head-and-shoulders pattern, suggesting weakened bullish momentum. The 50-day SMA may act as support, but a decline to $93 is possible if it breaks. A rise above the downtrend line would indicate strength and could lead to a rally to the overhead resistance of $126.
XRP Price Analysis:
XRP closed above the downtrend line but failed to clear the hurdle at $0.57, indicating selling pressure on minor relief rallies. If bears push the price below the moving averages, it could dip to strong support at $0.46. Buyers are expected to defend this level. A rebound from $0.46 could lead to a climb to $0.57 and a range-bound movement in that area. A break above $0.57 would suggest the end of the corrective phase and a possible rally to $0.67.
Cardano Price Analysis:
Cardano turned down from $0.64, suggesting profit booking. The price may reach the 20-day EMA ($0.57), which buyers must defend to maintain the uptrend. If successful, the ADA/USDT pair could rise to $0.64 and eventually to $0.68, with a break above signaling the start of the next leg of the uptrend. However, a drop below the 20-day EMA would weaken the bullish momentum and lead to consolidation between $0.46 and $0.64.
Avalanche Price Analysis:
Avalanche defended the 50-day SMA ($36) but faced selling pressure at the 20-day EMA ($38.22). The range-bound action is indicated by the flattened 20-day EMA and RSI near the midpoint. A break below the 50-day SMA could lead to a drop to $32, a strong support level. A rebound from this support could keep the pair between $32 and $42 for some time. On the upside, bulls need to push and sustain the pair above $42 to gain the upper hand.
Dogecoin Price Analysis:
Dogecoin bounced off the 20-day EMA ($0.08) but failed to overcome the barrier at $0.09. This suggests a negative sentiment, with bears selling on rallies. If the price falls below the moving averages, it could drop to the uptrend line. Bulls must defend this level to avoid a descent to $0.07. A rebound from the current level and a rise above $0.09 would invalidate the negative view and open the possibility of a rally to the $0.10 to $0.11 resistance zone.
Chainlink Price Analysis:
Chainlink bounced off the 20-day EMA ($18.81) but couldn’t maintain the recovery. The price turned down and slipped below the 20-day EMA. The next level to watch is the breakout level of $17.32, which may witness a tough battle between bulls and bears. A rebound from this level could lead to a rise towards the 20-day EMA and later to the overhead resistance at $20.85. A break below the $17.32 to 50-day SMA ($16.51) zone would suggest a potential trend change.
Polkadot Price Analysis:
Polkadot’s recovery stalled near the 61.8% Fibonacci retracement level of $8.21, indicating continued selling pressure from bears. The 50-day SMA ($7.18) is an important level to watch. If it breaks, it suggests weakening bullish momentum and could lead to a drop to the neckline and subsequently to $6. The range-bound action is indicated by the flattened 20-day EMA and RSI near the midpoint. A rebound from the neckline could keep the pair range-bound between $6 and $8.21, with a close above $8.21 bringing the bulls back into the game.
Please note that this article does not provide investment advice or recommendations. It is important to conduct your own research before making any investment decisions.