Bitcoin continues its tumultuous journey, grappling with selling pressures whenever it approaches higher price levels. While there are indications of a potential recovery, significant resistance remains, particularly the $87,500 mark. According to trading analysts from Material Indicators, a notable market figure known as “Spoofy the Whale” has been active in suppressing Bitcoin’s price, making it challenging for the cryptocurrency to maintain upward momentum.
Despite these hurdles, some experts see silver linings amidst the clouds. Arthur Hayes, co-founder of BitMEX, expresses a more optimistic view, suggesting that Bitcoin may have found a bottom at approximately $77,000. This assessment comes on the heels of announcements from the Federal Reserve hinting at a tapering of quantitative tightening efforts, which could positively influence market dynamics moving forward.
In the world of cryptocurrency, events such as potential economic recessions can also serve as intriguing catalysts. Robbie Mitchnick, who oversees digital assets at BlackRock, recently shared his insights in an interview with Yahoo Finance. He highlighted that sophisticated clients who invest in Bitcoin for the long term are unfazed by current economic challenges. Instead, they view the market dip as an excellent buying opportunity, hinting at the possible resilience in Bitcoin’s price as these investors scoop up assets at what they perceive to be favorable prices.
As we delve into the potential for Bitcoin to establish a higher low and break through that critical $87,500 barrier, it raises questions about the ripple effects on the broader cryptocurrency market. Could this lead to increased buying enthusiasm for altcoins? To answer these questions, let’s analyze the charts of some top cryptocurrencies in the current landscape.
Beginning with Bitcoin’s recent price patterns, the cryptocurrency managed to rise above the 20-day exponential moving average (EMA) of $85,332 on March 19. However, the momentum was curtailed as the bears exerted pressure to halt the rally at the resistance line. If Bitcoin breaks below the established uptrend line, the BTC/USDT trading pair may tumble to around $80,000 and possibly down to $76,606. This region between $76,606 and $73,777 is anticipated to encourage strong buying interest from bulls. However, if selling pressure prevails, Bitcoin could further descend to the $67,000 mark.
Conversely, should Bitcoin rebound off the uptrend line and break through the key resistance level at $87,500, it could gather significant momentum. The next major hurdle would be the 50-day simple moving average (SMA) at $91,136, but analysts expect this resistance to be overcome. A successful breakout could see Bitcoin rally to $95,000, with potential aspirations of reaching that elusive $100,000 milestone further down the road.
Turning our attention to Ethereum, we find that Ether has faced its share of challenges. The cryptocurrency’s recovery seemed to falter as it failed to maintain momentum at the 20-day EMA hovering around $2,067. Should the price dip below $1,927, the ETH/USDT pair may potentially decline to $1,800, where buyers are likely to attempt to defend the support. Failure to maintain this support could open pathways for Ether to drop to $1,550.
However, if the price manages to turn around and surpass the breakdown level of $2,111, this could pivot sentiment toward a bullish outlook. Such a move would clear the road for a rally towards the 50-day SMA, located at $2,420, and potentially to $2,850 thereafter.
In the case of XRP, the cryptocurrency had an impressive surge above the moving averages on March 19 but could not sustain that price increase. The current scenario sees bears attempting to push the price below the 20-day EMA at $2.36. If they succeed, we may see the XRP/USDT pair slip to $2.22 and ultimately test the critical support level at $2. Should buyers be unable to hold this level, it may trigger the completion of a bearish head-and-shoulders pattern.
On the flip side, if the price rebounds from the 20-day EMA, it could indicate that buyers are entering the market, potentially pushing the price back toward the resistance line.
Examining BNB, we note that its recent pullback found support at the 20-day EMA of $608 on March 19. This is indicative of buyers stepping in to support the price. The upward trajectory of the 20-day EMA combined with a positive RSI signals buyers might have a slight advantage. If BNB can close above $644, it could pave the way for further advances toward $686, although sellers will likely defend this level zealously to prevent any breakout beyond it.
Shifting our focus to Solana, the cryptocurrency experienced a decline from its 20-day EMA level of $135 on March 20. This suggests ongoing selling pressure during minor relief rallies. Should the SOL/USDT pair falter and slide to $120, there is a possibility of further decline to the $110 mark, where buyers are expected to staunchly defend the support zone. A rebound from here could see Solana strive for a breakout above the 20-day EMA, with ambitions toward the 50-day SMA at $163. However, if the price were to break below $110, it could signal the resumption of a downtrend, potentially leading to a plunge down to $98 or even $80.
Similarly, Cardano has encountered resistance as it turned down from the moving averages on March 20, a sign that sellers are defending this level robustly. The focus will now shift to the uptrend line, where bulls are expected to intervene. A strong rebound from this level could increase the likelihood of a rally above the moving averages, potentially reaching $1.02. Conversely, descending below the uptrend line would suggest waning bullish sentiment and could result in a decline toward support levels around $0.58 and eventually $0.50, which buyers are anticipated to defend staunchly.
Dogecoin has also shown signs of struggle, with buyers battling to push the price above the 20-day EMA of $0.18. A drop below $0.16 could lead the DOGE/USDT pair to retest critical support at $0.14, a crucial level for bulls. Conversely, a break above the 20-day EMA could signal renewed buyer interest, setting the stage for potential gains towards the 50-day SMA at $0.22 and beyond to $0.29.
Finally, we examine Toncoin, which made headway by clearing the 50-day SMA hurdle on March 19. However, bear pressure has limited further upward movement around the $4 mark. Should buyers find support at the 20-day EMA ($3.32), it could facilitate a breakout above $4, with the potential for further climbs toward $5 and later $5.50. Sellers would need to regain control by dragging the price below the 20-day EMA to shift momentum back in their favor.
In the realm of Chainlink, we note the price rose above the 20-day EMA on March 19 but subsequently slipped back below this level, indicating selling pressure at higher levels. There is a critical support level at $12 that bears may attempt to breach. Should the price rebound from current levels or touch $12, it may signal a shift in sentiment toward buying on dips. If this reversal occurs, it may lead to renewed buying interest pushing the LINK/USDT pair towards the 50-day SMA