Bitcoin (BTC) will face a difficult situation in 2022 due to high inflation and geopolitical turmoil. While gold has outperformed bitcoin since the beginning of the year, Mike McGlone, chief commodity strategist at Bloomberg Intelligence, believes bitcoin can make a strong comeback. McGlone predicts that the current conditions “represent another milestone in the development of Bitcoin.”
Another long-term bullish sign is that bitcoin miners have been increasing their bitcoin holdings since 2021. Compass Mining founder and CEO White Gibbs told the Cointelegraph that bitcoin miners “are taking a more bullish approach to bitcoin.”
Daily indicators for the cryptocurrency market. Source: Coin360
Do Kwon, founder of Terraform Labs, said his stablecoin TerraUSD (UST) will be backed by more than $ 10 billion in bitcoin reserves. He expects the move will “open a new monetary era for the bitcoin standard.”
Will Bitcoin and altcoins find buyers on dip, or will the bears hunt for aggressive bulls? Let’s analyze the charts of the 10 best cryptocurrencies to find out.
Bitcoin / US dollars
Bitcoin broke out to close above the 50-day simple moving average (SMA) of $ 40,311 on March 16, but the bulls are struggling to capitalize on the outbreak. This indicates that demand is drying up at higher levels.
BTC / USDT daily chart. Source: Trading View
The Bears will try to take advantage of this opportunity and push the price below the 20-day exponential moving average (EMA) ($ 39,973). If successful, the BTC / USDT pair could fall back to the strong support of $ 37,000.
Conversely, if the price jumps from the moving averages, it means that sentiment has become positive and traders are buying on the downside. The bulls will then try to push the price above $ 42,600 and expand the rally to $ 45,400.
ETH / USDT
Ether (ETH) broke out to close above the 50-day simple moving average ($ 2780) on March 16, indicating a strong bullish comeback. Buyers have stuck to the 50-day SMA today and are trying to extend the recovery.
ETH / USDT daily chart. Source: Trading View
The Relative Strength Index (RSI) has moved into positive territory and the 20-day moving average ($ 2,700) is starting to rise, indicating that the path of least resistance is rising. If the price exceeds the 50-day SMA, ETH / USDT may rise to the symmetrical triangle resistance line. Bjørner is expected to form a strong defense at this level.
These positive prospects will be invalid if the price deviates from the current level and falls below the moving averages. After that, the pair can fall to the triangle’s guide line.
BNB / USDT
BNB meets resistance at the 50-day simple moving average ($ 389). This is the fourth time that bears have been a major problem at this level. Thus, the 50-day simple moving average becomes the main level to look for in case of growth.
BNB / USDT daily chart. Source: Trading View
The flat moving averages and RSI near the midpoint indicate a balance between supply and demand. If buyers push the price while holding over 50-day SMA for three consecutive days, this indicates a possible trend change. The BNB / USDT pair can then start heading north towards $ 445.
On the other hand, if the price falls below the 20-day EMA ($ 382), the Bears will try to pull the pair against the strong support of $ 350.
XRP / USDT
Ripple (XRP) returned from the 50-day simple moving average ($ 0.74) on March 15, but the bulls failed to challenge the downward trend line. This indicates that the bears are selling on the way up.
XRP / USDT daily chart. Source: Trading View
Now the bears will try to push the price below the moving average. If successful, the XRP / USDT could fall to the strong support level of $ 0.68. If this support also breaks, the decline could extend to $ 0.62.
Alternatively, if the price jumps by the moving averages, this means that bulls are buying on fall. This can improve the odds of a breakout and a close above the downtrend line. After that, the pair may rise to $ 0.91.
Moon / USDT
The Terra LUNA token fell below the 20-day moving average of $ 84, indicating that the failure to maintain the price above $ 96 may have attracted profitable short-term traders.
LUNA / USDT daily chart. Source: Trading View
The 20-day moving average has leveled off and the RSI has fallen to the middle, indicating that bullish momentum may decline. If the price stays below the 20-day EMA, the Bears will try to pull the LUNA / USDT pair against the strong support of $ 70.
Contrary to this assumption, if the price returns from the current level, the bulls will make another attempt to push the price up and stay above $ 96.