Bitcoin (BTC) is on track to end the week with gains of over 23%. The banking crisis in the United States and Europe appears to have boosted Bitcoin buying, indicating that the major cryptocurrency is acting as a short-term safe-haven asset.
All eyes are on the March 21-22 Federal Reserve meeting. Bank failures in the US have raised hopes that the Fed will not raise rates at the meeting. The CME FedWatch tool shows a 38% chance of a pause and a 62% chance of a 25 basis point rate hike on March 22.
Analysts are divided on the consequences of the current crisis on the economy. Former Coinbase CTO Balaji Srinivasan believes the US will enter a period of hyperinflation, while pseudonymous Twitter user James Medlock thinks otherwise. Srinivasan plans to make a millionaire bet with Medlock and another person that Bitcoin’s price will hit $1 million by June 17.
While anything is possible in the crypto markets, traders should be careful in their trades and not get carried away with lofty goals.
Let’s study the charts of Bitcoin and altcoins which show signs of a resumption of bullish movement after a minor correction.
bitcoin price analysis
Bitcoin climbed above the $25,250 resistance on March 17, completing a head and shoulders (H&S) reverse uptrend.
Usually a breakout from a major setup returns to retest the breakout level, but in some cases the rally continues unabated.
The 20-day rising exponential moving average ($24,088) and Relative Strength Index (RSI) in overbought territory indicate an edge for buyers. If the price breaks above $28,000, the rally could accelerate and hit $30,000 and then $32,000. This level is likely to witness strong selling by the bears.
Another possibility is that the price drops from the current level but rebounds from $25,250. This will also keep the uptrend intact.
The positive view will be invalidated in the short term if the price drops below the moving averages. Such a move will suggest that the break above $25,250 may have been a bull trap. This could open the doors for an eventual drop to the psychologically critical $20,000 level.
The 4-hour chart shows that the BTC/USDT pair is facing a profit reservation near $27,750, but a positive sign is that the pullback has been shallow. The buyers will try to drive the price above $28,000 and resume the uptrend. The pair could then climb towards $30,000.
On the other hand, if the price declines and breaks below the 20-EMA, it will suggest that traders are rushing for the exit. This could push the price down to the important support at $25,250 where the bulls and bears could see an uphill battle.
Ether Price Analysis
The bulls conquered the resistance of $1,800 on March 18 but were unable to sustain the higher levels. This shows that the bears are vigorously protecting the $1,800 level on Ether (ETH).
The critical support to watch on the downside is the area between $1,680 and the 20-day EMA ($1,646). If the price bounces out of this area, it will signal that sentiment has turned positive and traders are buying on dips.
The buyers will then try again to resume the uptrend and push the price forward towards the next target level at $2,000. This level may prove to be a major hurdle for the bulls to clear.
On the contrary, if the price declines and breaks below the moving averages, it will suggest that the bulls are losing their grip. The ETH/USDT pair could then fall to $1,461.
The 4-hour chart shows that the pair has bounced off the support at $1,743. This suggests that the bulls are buying the shallow lows and not waiting for a deeper correction to enter. Buyers will then try to push the price above $1,841. If this level is removed, the pair may sprint towards $2,000.
On the contrary, if the price declines and dips below $1,743, short-term traders can take profits. The pair could then slide towards the next major support at $1,680.
BNB Price Analysis
BNB (BNB) broke above $338 on March 18, invalidating the bearish Health & Safety pattern. Usually, when a bearish pattern fails, it attracts buying from the bulls and short covering from the bears.
It is incumbent on the bulls to hold the price above the immediate support at $318. If they succeed, the BNB/USDT pair could first climb to $360 and then rush towards $400. The upward sloping 20-day EMA ($309) and the RSI near the overbought territory indicate that the path of least resistance is to the upside.
If the bears want to gain the upper hand, they will have to bring the price back below the moving averages. It may not be an easy task, but if successful, the pair could drop to $280.
The 4-hour chart shows the bulls buying the lows of the 20-EMA. The bears tried to stop the rally at $338 but the bulls broke through this resistance. Buyers will try to push the pair to $346. If this level breaks, the pair could continue its uptrend.
Alternatively, if the price declines and breaks below the 20-EMA, it will suggest that the short-term bulls could take profits on the rallies. The pair could then drop to $318 where buyers could step in to halt the decline.
Related: Peter Schiff accuses ‘too much government regulation’ of worsening financial crisis
Battery Price Analysis
Stacks (STX) rose from $0.52 on March 10 to $1.29 on March 18, a strong rise in a short time. This suggests aggressive buying by the bulls.
The STX/USDT pair is taking profits near $1.29, but a positive sign is that the bulls haven’t given much ground to the bears. This suggests that minor dips are being bought. Typically, in a strong uptrend, corrections last from one to three days.
If the price moves back up and breaks above $1.29, the pair could resume its uptrend. The next upside stop will likely be $1.55 and then $1.80.
The first sign of weakness on the downside will be a breakout and a close below $1. This could pave the way for a decline in the 20-day EMA ($0.84).
The pair corrected the 20-EMA. This is an important level for the bulls to defend if they want to resume the upward move. If the price bounces off the 20-EMA, the pair could retest the overhead resistance at $1.29. If the bulls overcome this barrier, the next leg of the uptrend could begin.
Conversely, if the bears cause the price to drop below the 20-EMA, the pair could slide to $1 and then to the 50 simple moving average. A deeper correction may delay the resumption of the bullish move and keep the pair stuck in a fork for a few days.
Immutable price analysis
Immutable (IMX) surged above the $1.30 overhead resistance on March 17, which completed the H&S reverse formation. This suggests the start of a new potential uptrend.
Meanwhile, the price may retest the breakout level of $1.30. If the price rebounds from this level with strength, it will suggest that the bulls have tipped the level into support. Buyers will then try to push the price above $1.59 and resume the uptrend. The IMX/USDT pair could then rally to $1.85 and later to $2. The pattern target of the reversal setup is $2.23.
This positive view could be reversed in the short term if the price slips below the moving averages. Such a move will suggest that the break above $1.30 may have been a bull trap. The pair could then fall to $0.80.
The pair is witnessing a slight correction, which finds support at the 20-EMA. The buyers are trying to break through the broad hurdles at $1.59, but the bears are not giving in. If the price breaks below the 20-EMA, the pullback could reach $1.30.
Another possibility is that the price will bounce off the 20-EMA. This will point to strong demand at lower levels and improve the outlook for a break above $1.59. If that happens, the pair could resume its uptrend.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.