Bitcoin (BTC) fell below $40,000 on March 4 and traded below that level all weekend.
While the price movement of cryptocurrencies has been choppy in recent days, data from Glassnode shows that institutional investors have been gradually accumulating bitcoin through Grayscale Bitcoin Trust (GBTC) shares since December 2021.
Another positive sign is that fund managers did not panic and get rid of GBTC investments. This indicates that the leaders are likely to be optimistic in the long term. Therefore, they come out of short-term ailments.
See daily crypto market data. Source: Coin360
Bloomberg Intelligence reported in its March 4 crypto market review that bitcoin could remain under pressure if U.S. stock markets continue to fall. But, in the end, they predict the growth of cryptocurrencies in the future. On the other hand, if the stock market recovers, Bitcoin could “grow faster” if previous patterns repeat.
While the cryptocurrency markets are facing strong headwinds, some altcoins are showing signs of life. Let’s take a look at the charts of five major cryptocurrencies that could benefit from Bitcoin’s rebound.
Bitcoin fell below its moving averages on March 4, indicating that the bears are trying to take the lead. The bulls tried to overcome the bears by pushing the price back above the moving averages on March 5 and 6, but failed.
BTC/USDT daily chart. Source: Trading View
If the price continues to move below the moving averages, the bears will try to pull the BTC/Tether (USDT) pair towards the ascending channel reference point. Bulls are likely to aggressively defend this level. A resolute rejection of this support would indicate that the couple can extend their stay inside the channel for a few more days.
This short-term bearish perception will be invalidated if the price breaks the current level and exceeds the 20-day exponential moving average ($40,474). This will indicate strong buying at lower levels. The bulls will then try to push the price towards the channel resistance line. The next trend move is likely to start after the pair breaks above or below the channel.
4-hour BTC/USDT chart. Source: Trading View
The 20-EMA is down on the 4-hour chart and the Relative Strength Index (RSI) is in negative territory, indicating that the bears have the upper hand. If the price falls below $38,000, the pair could fall to $37,000 and then to $35,500.
Contrary to this assumption, if the price rises from the current level and rises above the 20-EMA, this will indicate strong buying at lower levels. Bullish momentum could pick up after the pair broke and closed above the 50 simple moving average. This could open the doors for a potential rally to $45,000.
In recent days, Ripple (XRP) has been trying to rise above the downtrend line, but the bears have persisted. The simple positive is that the bulls are not giving up and are trying to defend the 50-day SMA ($0.72).
Daily XRP/USDT chart. Source: Trading View
Fixed moving averages and RSI near the midpoint do not give a clear advantage to either bulls or bears. If the bulls push the price above the downtrend line and hold it, momentum is likely to pick up and XRP/USDT could rise to $0.91.
A flare and completion above this level could open the way for a possible retest of psychological resistance towards $1. Conversely, if the price drops and continues to move below $0.69, this would be an indication that the bears are in control again. The pair could then drop to $0.62.
4-hour XRP/USDT chart. Source: Trading View
The 4-hour chart shows that the pair is currently in a range of $0.80 to $0.70. If buyers push the price above the downtrend line, the pair could challenge the overall $0.80 resistance. A surge and completion above this level may indicate that the bulls have the upper hand. The pair may rise first to $0.85 and then to $0.91.
Contrary to this assumption, if the price falls below the moving averages, this would mean that the bears are selling on the rally. After that, the pair may fall to $0.70. If this level is broken, selling may accelerate and the pair may drop to $0.62.
about / USDT
The NEAR protocol (NEAR) is placed between the moving averages of the last few days. This shows that the bears are selling on the rise to the 50-day SMA ($11) and the bulls are buying on the dip to the 20-day SMA ($10).