Speculation about the US Federal Reserve’s tightening cycle and recent geopolitical events may have led to panic selling by short-term traders. Glassnode analysis showed that traders who bought bitcoin (BTC) near the November 2021 peak have liquidated their positions over the past two and a half months. This proposal was received with high conviction by investors, which led to a redistribution from weak to strong hands.
The cryptocurrency market, thanks to its resilience, continues to lure former skeptics into its ranks. The latest celebrity to change his mind was Ken Griffin, founder of the American multinational hedge fund and financial company Citadel. In an interview with Bloomberg, Griffin said that Citadel “will be in the business of building crypto markets” over the next few months.
Daily indicators in the cryptocurrency market. Source: Coin360
Voyager Digital co-founder and CEO Steven Ehrlich told Cointelegraph that the company’s last quarter was “the best quarter ever, so I definitely feel like this is a great time to work in the crypto space.” Along with the companies, Erlich believes that crypto investors are likely to be rewarded in the long run.
Will demand stay the same at higher levels and continue to rise in the next few days? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin/US dollar
The Bitcoin recovery has reached an upper resistance zone between $45,821 and the rising channel resistance line. Bears are expected to aggressively defend territory.
BTC/USDT daily chart. Source: Trading View
The 20-day exponential moving average ($40,797) has started to rise and the Relative Strength Index (RSI) is in positive territory, indicating a buying advantage. If the bulls stop another decline at the 20-day EMA, it will increase the likelihood of a flash across the entire channel. If this happens, the BTC/USDT pair could rise to $52,088.
Contrary to this assumption, if the price falls and breaks through the moving averages, this would mean that the pair could be stuck inside the channel for a few more days. After that, the steam can descend to the guide line of the channel.
Ether/US dollar
Ether (ETH) broke to close above the 50-day Simple Moving Average (SMA) ($2,860) on Feb. 28, indicating that the bulls are trying to come back. The moving averages are close to completing a bullish crossover and the RSI is in positive territory, indicating an upward path of least resistance.
Daily ETH/USDT chart. Source: Trading View
If the price bounces off the 20-day moving average ($2824), it would be an indication that the bulls are buying on every slight decline. ETH/USDT could then rise to the symmetrical triangle resistance line. The bears are likely to defend this level aggressively, but if the bulls break this barrier, the pair could start a new bullish trend.
Alternatively, if the price breaks below the 20-day moving average, the pair could drop to the triangle support line. An eruption and close below the triangle could signal a resumption of the downtrend. Price action within the triangle is likely to remain choppy.
BNB / US dollar
BNB broke above the 50-day SMA ($406) on March 1, but the candle’s long wick indicates selling at higher levels. The bulls pushed the price back above the 50-day SMA on March 2 but are struggling to hold higher levels.
BNB/USDT daily chart. Source: Trading View
This indicates that the bears are trying to defend the 50-day SMA. If the price breaks below the current level, but does not break through the 20-day EMA ($391), this will mean that the bulls are buying on the fall.
This will raise the likelihood of an outbreak and end of the epidemic above the 50-day simple moving average. If this happens, the BNB/USDT pair could rise to an upper resistance level at $445. These positive outlooks will be lost in the short term if the price breaks and continues below the 20-day moving average.
XRP/USD
Ripple (XRP) rose to a descending line on February 28 as bears build strong defenses. The price has broken the downtrend line and may now drop to the 50-day SMA ($0.72).
Daily XRP/USDT chart. Source: Trading View
Stable moving averages and the relative strength index near the midpoint indicate a balance between supply and demand. This balance will shift in favor of the buyers if XRP/USDT rises and continues above the downtrend line.
