The minor re-tracement may be a buying opportunity, especially given the present crypto market conditions. On the downside, if prices fall below $9k, BTC’s technical setup suggests a breakout to the upside and charts suggest DOT,’SAND,’RUNE, and ZEC would be among the first to benefit from any bullish price movement.
On Saturday, Bitcoin (BTC) was relatively quiet, suggesting that traders remained cautious and did not make significant bets ahead of the next Federal Open Market Committee meeting on March 15 and 16. The amount of the rate hike could serve as a trigger for the cryptocurrency market.
The present neutral Bitcoin configuration has kept the experts guessing. Analytics resource Material Indicators advised investors to be prepared to buy the dip, believing that the “bounce can change your life,” but they also predicted that Bitcoin could plunge.
Crypto market data daily view. Source: Coin360
In the Sports Outlook 2022 study conducted by PricewaterhouseCoopers (PwC) in North America, three nonfungible token use cases were identified, which may have a significant impact on sports. The consultancy believes that NFTs and digital assets are among the top ten trends in the sports industry.
Is it possible that the crypto markets begin a movement in the near term? Let’s have a look at the charts of the top-5 cryptocurrencies that may benefit from an increase in optimism.
BTC/USDT
On March 12, bitcoin formed a Doji candlestick pattern, suggesting that the bulls and bears are at loggerheads. The price is trapped between the 20-day exponential moving average ($39,810) and the horizontal support at $37,000.
BTC/USDT daily chart. Source: TradingView
The 20-day EMA is flat, and the relative strength index (RSI) is near the middle point, implying a balance between supply and demand.
If the price rises and surpasses the 50-day simple moving average ($39,978), the bulls will try to push the BTC/USDT pair above $42,600. If they reach their goal, the pair might rise to $45,400 before testing the channel’s resistance line.
If the price drops and breaches below $37,000, the bears will perceive a chance. The sellers will then attempt to drag and maintain the pair below the channel’s support line. Such a movement may provide a launch pad for an attack on $30,000.
BTC/USDT 4-hour chart. Source: TradingView
The pair is forming a descending triangle pattern, which will conclude with a break and a close below the strong support at $37,000. The pair might fall to $34,322 before restarting its path toward the pattern objective of $29,250.
If bulls keep pushing the price higher above the 50-SMA, it could rise to the downtrend line. A break and close above this point will negate the bearish pattern. Buying may be attracted if this level is broken, allowing for a rally toward $45,400.
DOT/USDT
The price of Polkadot (DOT) has been in a declining pattern for several months, but the bulls are attempting to establish a bottom between $16 and $14. The price reached above the 20-day EMA ($17), but the bull s have been unable to overcome the barrier at the 50-day SMA ($18).
DOT/USDT daily chart. Source: TradingView
A good sign is that the bulls have not given up much ground from the 50-day SMA. This indicates that traders are holding on to their positions anticipating a break above the resistance, implying a rise to $23 where bears might once again pose a serious threat.
The flat 20-day EMA and the RSI around the midpoint suggest a range-bound market in the near term. In the event that the price drops below the 50-day SMA, the bears will attempt to drag it down to $16. If they are successful, the pair may attempt to retake support at $14.
DOT/USDT 4-hour chart. Source: TradingView
The chart on the right side of this bar (at a scale of 1:4) shows that the pair is swinging between $16 and $19. The inability of purchasers to push the price above the overhead resistance may have induced profit-booking from short-term traders. This caused the price to fall below the 50-SMA.
If the price rises above the 200-SMA, it implies that bulls will continue to buy on dips. The buyers will then attempt to push the price higher through the overhead resistance at $19. If they succeed, the pair could rise to $20 and even toward $23.
A break and close below the 50-SMA, on the other hand, could raise the risk of a decline to $16’s strong support.
SAND/USDT
The Sandbox (SAND) has been range-bound for weeks on end at around $2.55 to $4.86. The bears pushed the price below the 200-day SMA ($3.15) on March 4 but were unable to break the support level of $2.55.
SAND/USDT daily chart. Source: TradingView
The pattern’s down-sloping trajectory appears to be curving, suggesting that the bearish momentum is weakening. The RSI has shown signs of a positive divergence, indicating that the bearish trend may be coming to an end.
If the price rises from its current level, the bulls will attempt to push the SAND/USDT pair above the 200-day SMA. If that happens, the pair could rise to $3.51 (50-day SMA). A breakout and close above this barrier might provide a route to $4.50 and then $4
If the price declines and falls below $2.55 in the near term, this bullish viewpoint will be invalidated. The resumption of the downtrend might be implied by this news.
SAND/USDT 4-hour chart. Source: TradingView
On the 4-hour time frame, the 50-SMA has been serving as a strong barrier. If bulls fail to retain below $2.70, the pair could plunge to the sturdy support level of $2.55. A break and close beneath this level might indicate that bears have an upper hand.
The bears may retake control if the bulls fail to challenge the zone between the 50-SMA and $3. If that happens, the pair could rise to $3.42, where the bears may once again establish a solid resistance.
RUNE/USDT
On March 1, THORChain (RUNE) broke above the moving averages and successfully defended the level during the retest on March 8. This suggests that the attitude towards buying on declines has changed from sell on rallies to buy on dips.
RUNE/USDT daily chart. Source: TradingView
The bulls will now attempt to push the price past the 100-day SMA ( $8.00), where the bears may once again make a formidable resistance. The bulls will try one more time to shatter this barrier if they are unable to gain much ground from the 200-day SMA. If they succeed,
If the price rises above the 20-day EMA, it is likely to fall back toward it. A decline from this level, on the other hand, would suggest that the bullish sentiment has dissipated.
RUNE/USDT 4-hour chart. Source: TradingView
On the 4-hour chart, the 20-EMA is sloping up while the RSI is in a positive territory, suggesting that the bulls have the upper hand. The pair may soon rise above $7, where the bears will battle to stifle the advance.
If the price rises from its support level, it could either retest that support or break below it. Alternatively, if the price declines from its current level, it may fall to the 20-EMA. If the price rebounds off this level, bulls will try to resume the upswing. Bears will have to pull and maintain the price below the 20
ZEC/USDT
ZEC has now broken and closed above the $135 level, completing a double bottom pattern, on March 8. This was followed by a rise past the 200-day SMA ($145) on March 10, signifying that bulls had returned to the scene.
ZEC/USDT daily chart. Source: TradingView
The bears are presently attempting to reverse the price back below the 200-day SMA and challenge the breakout level at $135. This is a crucial line for the bulls to defend since a break beneath it may signal that the recent breakout was a bear trap. The ZEC/USDT pair might drop as low as the 50-day SMA
If the price rises off its current level or $135, it suggests that investors are buying on dips and that the mood is good. The bulls will then attempt to push the pair above $160 to resume the advance. The breakaway from the double bottom pattern’s goal objective is $189.
ZEC/USDT 4-hour chart. Source: TradingView
Bears knocked the price down below the 20-EMA on the 4-hour chart, but they have been unable to maintain those lows. This suggests that bulls are continuing to add to their positions on each minor downturn. The bulls will now endeavor to push the price higher and resume the advance. The rising 20-EMA and RSI in a positive range
Contrary to popular belief, if the price falls below $143 and declines, selling may pick up momentum. The pair might then plunge to the important support level of $135.
Crypto Tax Calculator Australia is an easy to use, fast and reliable application for Australians who need to calculate their cryptocurrency taxes. Customers can choose the plan that is best suited for them, then simply upload their CSV file/s into the application. They will soon be presented with a tax report which they can then lodge at tax time. If you are an Australian crypto trader and need help calculating your cryptocurrency taxes, be sure to try out the Crypto Tax Calculator Australia!
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Crypto Tax Calculator Australia. Every investment and trading move involves risk, you should conduct your own research when making a decision.