Bitcoin (Bitcoin) surged above $42,000 on Mar 19, but the bulls continue to face a strong challenge from the bears at higher levels.
Although Bitcoin’s price has recovered from $37,578 on March 13, Cointelegraph market analyst Marcel Pechman emphasized that the net long-to-short ratio of top traders on three major exchanges shows it professional traders did not buy aggressive.
But as Bitcoin struggles at higher levels, select altcoins are showing strength. Twitter account BTCFuel posits that altcoins may be entering “the final stages of the hype phase.” can reach their peak in summer.
Glassnode data shows that Investors have withdrawn around 550,000 ethers (ETH) from centralized exchanges year-to-date. Due to the outflows, the exchanges’ net ether inventory has plummeted to 21.72 million ether from 31.68 million ether in June 2020.
Could Bitcoin Hold Above Psychological Levels at $40,000 and Will That Shift Focus to Altcoins? Let’s study the charts of the most notable five cryptocurrencies to find out.
Bitcoin is facing resistance near $42,594, suggesting traders are cautious at higher levels. The price might now drop to the moving averages, which is a key support to watch for.
If the price recovers from the moving averages, it will suggest that the bulls are not waiting for a deeper correction to buy. That could improve the prospects for a break and close above the overhead resistance. In that case, the BTC/USDT pair could rally to $45,400 and later to the ascending channel resistance line.
Contrary to this assumption, the pair could slide towards $37,000 if the price turns down and breaks below the moving averages. A bounce off this support suggests the pair could stay range-bound between $37,000 and $42,594 for a few days.
The bears need to drag the price below the channel’s support line and hold it to signal the resumption of the downtrend.
The 4-hour chart shows the bears defending the overhead resistance at $42,594. If the price recovers from the 20x moving average, the bulls will attempt to push the pair above the overhead resistance. If they succeed, the pair could rally towards $45,400.
On the other hand, if the price breaks below the 20-EMA, it suggests that the short-term traders may sell near the overhead resistance. That could open the doors for a possible drop to the 50 simple moving average. If this support breaks, the decline could extend to $37,000.
terrace LUNA Token bounced off the 20-day EMA ($86) on March 18, hinting at strong buying lower levels. Both the moving averages are sloping up and the Relative Strength Index (RSI) is in positive territory, indicating an advantage for buyers.
If buyers propel and sustain the price above $96, the LUNA/USDT pair could challenge the $105 all-time high. A break and close above this resistance will indicate a resumption of the uptrend. The pair could initially rise to $115 and then $125.
Alternatively, if the price turns down from $96, the pair could revisit the 20-day EMA. A break and close below this support will indicate the bullish momentum is weakening. The pair could then slide into the strong $75-$70 support zone.
The pair has consolidated between $85 and $96. Although the bears dragged the price below $85, they failed to hold the lower levels. This suggests strong buying on dips. Both the moving averages are crossing which suggests range bound action in the near term.
If the price surges above $96, the advantage will shift in favor of buyers and the pair could then rally to $105.
Conversely, if the price turns down from $96, the pair could drop to the moving averages and then to $85. The bears need to drag the price below the $85-$82 support zone and sustain it to signal the start of a deeper correction.
avalanche (AVAX) broke through and closed above the downtrend line of the descending channel on March 18, indicating a possible trend reversal. However, the bears have other plans and are currently attempting to pull the price back below the breakout level.
When the price turns down from the current level but recovers from the downtrend line of the channel, it suggests that the breakout is valid. This increases the possibility of a rally to the psychological level at $100. The rising 20-day EMA ($78) and the RSI in positive territory are indicating an upside for buyers.
Conversely, if the price re-enters the channel and falls below the moving averages, it will indicate that the recent breakout was likely a bull trap. That could surprise several buyers, leading to a possible drop below the uptrend line.
The 4-hour chart shows that the rise above the channel has propelled the RSI into overbought territory. This may have led to profit booking by short-term traders. The pair could now drop to the 20-EMA, which is likely to act as strong support.
If the price recovers from this level, it will indicate that sentiment has turned bullish and traders are buying on dips. This increases the probability of a continuation of the upward movement.
On the contrary, a break and close of the channel will indicate that the bullish momentum has weakened. That could drag the pair down to the 50-SMA.
Ethereum Classic (ETC) gained momentum after breaking and closing above the downtrend line. Strong buying has propelled the price near the $38 stiff overhead resistance. The bears should vigorously defend this level.
If the price turns down from the current levels, the ETC/USDT pair could drop to $32. The 20-day EMA ($28) has started to emerge and the RSI is in the overbought territory giving an advantage to the buyers.
If the price does not drop much from current levels or recovers sharply from $32, the bulls will make another attempt to clear the $38 overhead hurdle. If they succeed, the pair could rally to $45 and then $50.
Alternatively, if the price turns down and falls below $32, the next stop could be the 20-day EMA. A break and close below this level will indicate that the bears are back in the game.
The 4-hour chart shows that the pair started a vertical rally after breaking out of the downtrend line. This pushed the RSI deep into overbought territory. Such overbought levels are usually followed by sharp declines.
The pair could drop to the 38.2% Fibonacci retracement level at $33 and later to the 50% retracement level at $32. The bulls are likely to defend this zone aggressively. If the price recovers from this support zone, buyers will attempt to push the pair above the overhead resistance and resume the uptrend.
Bullish momentum could weaken on a break and close below $32. The pair could then drop to the 61.8% Fibonacci retracement level at $30.
Elrond (EGLD) broke and closed above the moving averages on March 15, suggesting that the bulls are attempting a comeback. The bears have attempted to pull the price back below the moving averages, but the bulls have thwarted their efforts.
The 20-day EMA ($151) has started gradually turning up and the RSI has climbed into positive territory. This suggests that the path of least resistance is up. If buyers push the price above $169, the EGLD/USDT pair could extend its upward move to the psychological $200 level. Bears are expected to build strong defenses at this level.
This positive view will be invalidated if the price turns down and falls below the 20-day EMA. Such a move suggests that the recent break above the 50-day SMA ($155) could have been a bear market rally. The pair could then drop back to $125.
The bulls pushed the price above the overhead resistance at $160, but the bears quickly pulled the price lower, trying to trap the aggressive bulls. Although the price fell below the 20-EMA, the bears did not take advantage. This indicates strong buying at lower levels.
The bulls have once again pushed the price above $160 and are attempting to continue the upward move. Bullish momentum could pick up on a break and close above $169. This bullish view will be negated if the price turns down and falls below $152.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should do your own research when making a decision.
https://cointelegraph.com/news/top-5-cryptocurrencies-to-watch-this-week-btc-luna-avax-etc-egld BTC, LUNA, AVAX, ETC, EGLD