Bitcoin (BTC) has been largely aimless since the start of the year as bulls have bought dips and bears have sold higher. This indicates that the price is consolidating over a large territory as both bulls and bears are waiting for the next trigger to prove their edge.
Short-term volatility could rise after the US Federal Reserve announced its policy decision on March 16, but unless the Fed comes as a surprise, the likelihood of a new trend could be low. Bitcoin may spend a little more time forming a bottom before breaking out.
Daily indicators in the cryptocurrency market. Source: Coin360
A positive sign of directed action this year has been evidence of lagging behind both small investors and select whales. This coincided with a continuous decline in bitcoin balances on exchanges. Accumulated bitcoin balances across the 21 exchanges it covers have fallen to 2.32 million bitcoins, the lowest level since August 2018, according to CryptoQuant.
Will Bitcoin be able to overcome the nearest resistance level and take the altcoins higher? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin has returned from immediate support to $37,000, indicating that the bulls are trying to defend this level. Buyers will now try to push the price above the moving averages. If they succeed, it will indicate strong demand at lower levels.
BTC/USDT daily chart. Source: Trading View
The bulls will then try to continue the upward movement by removing the $42,594 barrier. If they succeed, this will be the first sign that the bears may be losing their grip. Further, the BTC/USDT pair may rise to the upper zone between $45,400 and the rising channel resistance line.
Conversely, if the price falls below the moving averages, this will indicate that the bears are not willing to give up their advantage. The sellers will then try to strengthen their positions by dragging the price below the guide channel. Such a movement may signal the resumption of a downtrend.
The bulls are trying to defend the evidence of a symmetrical triangle. A strong bounce off the current level could push ETH (ETH) towards the moving averages where the bears are likely to create strong protection.
Daily ETH/USDT chart. Source: Trading View
If the price drops below the moving averages, it will mean that the sentiment is still negative and that traders are selling on the sudden rally. This will increase the chance of a breakout below the triangle. ETH/USDT could resume the downtrend and then drop to $2159.
Contrary to this assumption, if the bulls push the price above the moving averages, this would mean that the selling pressure could be reduced. The pair could then rise to the psychological $3,000 level and then challenge the resistance line in the triangle.
BNB / US dollar
BNB is trying to come back from the support area between $360 and $350. This indicates that buyers continue to accumulate on the decline near the support area.
BNB/USDT daily chart. Source: Trading View
Buyers should push the price and keep it above the moving averages to signal that the bears could lose control. If the price stays above the 50-day Simple Moving Average (SMA) of $389, the bulls will try to push the BNB/USDT pair towards $425.
This positive prediction becomes invalid if the price drops again from the moving averages and falls below $350. This move may indicate that sentiment remains negative and that traders continue to sell on the uptrend. This could bring the price to the critical $320 support.
The price of Ripple (XRP) rose above the downtrend line on March 11, but the rally met strong resistance at $0.85. This indicates that the bears have not given up yet and continue to sell on the rally.
Daily XRP/USDT chart. Source: Trading View
The price retreated to the 20-day exponential moving average (EMA) ($0.75), which is likely to act as strong support. If the price returns from the current level, buyers will make another attempt to push the XRP/USDT pair and keep it above $0.85. If they succeed, the pair could rise to $0.91 and then rise to psychological resistance at $1.
This positive outlook will be invalidated if the price drops below the moving averages. Such a move may indicate that a break above the downtrend line could be a bull trap. A break and close below $0.69 could open the door for a possible fall to $0.62.