Bitcoin (BTC) is on track to close the week with gains of more than 23%. The banking crisis in the US and Europe seems to have fueled the buying in Bitcoin, indicating that the leading cryptocurrency is behaving as a safe haven in the short term.
All eyes are on the Federal Reserve’s meeting on March 21 and 22. The failure of banks in the US has raised hopes that the Fed will not raise interest rates at the meeting. The CME FedWatch Tool shows a 38% probability of a pause and a 62% probability of a 25 basis point rate hike on March 22.
Analysts disagree about the consequences of the current crisis for the economy. Former Coinbase CTO Balaji Srinivasan believes the US will enter a period of hyperinflation, while pseudonymous Twitter user James Medlock believes otherwise. Srinivasan plans to make a millionaire bet with Medlock and another person that Bitcoin’s price will reach $1 million by June 17.
Although anything is possible in crypto markets, traders should be careful in their trading and not get carried away by lofty goals.
Let’s study the charts of Bitcoin and altcoins showing signs of resuming the up move after a minor correction.
Bitcoin price analysis
Bitcoin rose above the $25,250 resistance on March 17, completing a bullish inverse head and shoulders (H&S) pattern.
Usually a breakout from a major setup returns to retest the breakout level, but in some cases the rally continues unabated.
The rising 20-day exponential moving average ($24,088) and the relative strength index (RSI) in the overbought area indicate upside for buyers. If the price breaks above $28,000, the rally could pick up and rise to $30,000 and then to $32,000. This level is likely to witness strong selling by the bears.
Another possibility is that the price declines from the current level but rebounds from $25,250. It will also keep the bullish trend intact.
The positive view will be invalidated in the short term if the price plummets below the moving averages. Such a move would suggest that the break above $25,250 may have been a bull trap. That could open the door for a possible drop to the psychologically critical $20,000 level.
The 4-hour chart shows that the BTC/USDT pair is facing profit-booking near $27,750, but a positive sign is that the pullback has been shallow. 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 falls and falls below the 20-EMA, it will indicate that the traders are rushing for the exit. It could drag the price down to the important support of $25,250, where the bulls and bears could witness a fierce battle.
Ether price analysis
The bulls captured the $1,800 resistance on March 18 but could not sustain the higher levels. This shows that the bears are protecting the $1,800 level on Ether (ETH) with force.
The critical support to watch on the downside is the zone between $1,680 and the 20-day EMA ($1,646). If the price returns from this zone, it will signal that sentiment has turned positive and traders are buying on the decline.
Buyers will then again try to resume the uptrend and drive the price towards the next target of $2,000. This level could prove to be a major hurdle for the bulls to cross.
Conversely, if the price falls and falls below the moving averages, it would indicate that the bulls are losing their grip. The ETH/USDT pair may then fall to $1,461.
The 4-hour chart shows that the pair rejected the support at $1,743. This suggests that the bulls are buying the shallow dips and not waiting for a deeper correction to enter. Buyers will next try to kick the price above $1,841. If this level is taken out, the pair could sprint towards $2,000.
If, on the other hand, the price declines and falls below $1,743, short-term traders can book profits. The pair could then slide to the next important support at $1,680.
BNB price analysis
BNB (BNB) rose above $338 on March 18, invalidating the bearish H&S pattern. Usually, when a bearish pattern fails, it attracts buying by the bulls and short covering by the bears.
The onus is on the bulls to hold the price above the immediate support at $318. If they manage to do that, the BNB/USDT pair could first climb to $360 and then slide towards $400. The upward 20-day EMA ($309) and RSI near overbought territory indicate that the path of least resistance is to the upside.
If bears want to gain the upper hand, they will need to pull price back below the moving averages. This may not be an easy task, but if completed successfully, the pair could fall to $280.
The 4-hour chart shows the bulls buying dips to the 20-EMA. The bears tried to stop the rally at $338, but the bulls have pierced this resistance. Buyers will try to push the pair to $346. If this level gives way, the pair may continue its upward trend.
Alternatively, if the price falls and breaks below the 20-EMA, it will indicate that the short-term bulls may book profits on rallies. The pair could then fall to $318 where the buyers could step in to stop the decline.
Related: Peter Schiff blames ‘too much government regulation’ for worsening financial crisis
Stacker price analysis
Stacks (STX) rose from $0.52 on March 10 to $1.29 on March 18, a strong run within a short period of time. This suggests aggressive buying by the bulls.
The STX/USDT pair is witnessing profit booking near $1.29, but a positive sign is that the bulls have not ceded much ground to the bears. This suggests that less dips are being bought. Typically, in a strong uptrend, corrections last for one to three days.
If the price emerges and breaks above $1.29, the pair can resume its uptrend. The next stop on the upside is likely to be $1.55 and then $1.80.
The first sign of downside weakness will be a break and close below $1. That could clear the way for a drop to the 20-day EMA ($0.84).
The pair has directed to the 20-EMA. This is an important level for the bulls to defend if they want to resume the up move. If the price rebounds from the 20-EMA, the pair may test the overhead resistance at $1.29. If bulls overcome this barrier, the next part of the uptrend can begin.
Conversely, if bears sink the price below the 20-EMA, the pair may slide to $1 and then to the 50-simple moving average. A deeper correction could delay the resumption of the up move and keep the pair stuck in a range for a few days.
Immutable price analysis
Immutable (IMX) soared above the $1.30 overhead resistance on March 17, completing the inverse H&S formation. This suggests the start of a potential new uptrend.
Meanwhile, the price may retest the $1.30 breakout level. If the price bounces back from this level with strength, it will indicate that the bulls have turned the level to support. Buyers will then try to kick the price above $1.59 and resume the uptrend. The IMX/USDT pair may then rise to $1.85 and later to $2. The pattern target for the reversal setup is $2.23.
This positive view can be reversed in the short term if the price slips below the moving averages. Such a move would 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 mild correction which is finding support at the 20-EMA. Buyers are trying to clear the overhead hurdles at $1.59, but the bears are not letting up. If the price breaks below the 20-EMA, the pullback could reach $1.30.
Another possibility is that the price rises from the 20-EMA. That would indicate solid demand at lower levels and increase prospects for a break above $1.59. If that happens, the pair could resume its uptrend.
This article does not contain investment advice or recommendations. Any investment and trading move involves risk and readers should do their own research when making a decision.