Bitcoin (BTC) has been trading sideways recently, indicating a battle between buyers and sellers. The question on every crypto investor’s mind is whether the sellers will overpower the buyers and initiate a short-term correction, or if the buyers will come out on top.
The S&P 500 Index has experienced profit booking due to diminishing hopes of an early rate cut by the Federal Reserve. This could signal a risk-off sentiment in the near term, increasing the likelihood of a pullback in Bitcoin and select altcoins.
However, this dip may not change the long-term bullish view. Investors are likely to see every dip as an opportunity to buy because of Bitcoin’s upcoming halving in April, which has historically been a bullish event.
To determine the important support levels that could prevent a decline in Bitcoin and altcoins, let’s analyze the charts of the top 10 cryptocurrencies.
Bitcoin’s price is struggling to stay above $52,000, indicating strong resistance from bears. If the price falls below $50,000, short-term traders may book profits, leading to a pullback to the 20-day exponential moving average ($48,842). On the other hand, if the price rebounds off the 20-day EMA, it will signal positive sentiment and increase the likelihood of a rally above $52,000.
Ether (ETH) turned down from the psychological resistance of $3,000, suggesting profit booking by short-term traders. The crucial support level is $2,717, and if the price bounces back from this level, it will indicate aggressive buying of every minor dip. This could lead to a break above $3,000 and a rally to $3,300. However, if the price falls below the 20-day EMA, it could signal a deeper correction to the 50-day SMA.
BNB turned up after a brief correction and broke above the $367 resistance, signaling a resumption of the uptrend. The moving averages and the RSI indicate that the bulls are in control. If the price stays above $368, the BNB/USDT pair could gain momentum and surge towards $400. The first support level is the 20-day EMA, followed by the 50-day SMA.
Solana’s rebound halted at $115, indicating a lack of demand at higher levels. The bears pulled the price below the neckline of the inverse head-and-shoulders pattern, signaling weakened bullish momentum. The 50-day SMA may act as support, but if it breaks, the pair could decline to $93. A rise above the downtrend line would indicate strength and could lead to a rally to $126.
XRP closed above the downtrend line but failed to overcome the hurdle at $0.57, suggesting that relief rallies are being sold into. If the bears pull the price below the moving averages, the XRP/USDT pair could dip to the strong support at $0.46. A rebound from this level could push the price to $0.57, while a break above $0.57 would suggest the end of the corrective phase and a possible rally to $0.67.
Cardano turned down from $0.64, indicating profit booking by short-term traders. The 20-day EMA is a crucial support level, and if buyers defend it, the ADA/USDT pair could rise to $0.64 and eventually to $0.68. On the other hand, if the price falls below the 20-day EMA, it could signal weakened bullish momentum and a consolidation between $0.46 and $0.64.
Avalanche defended the 50-day SMA but failed to sustain the recovery. The 20-day EMA has flattened out, indicating a range-bound action. If the price breaks below the 50-day SMA, the pair could drop to $32, which is a strong support level. On the upside, the bulls need to push the price above $42 to complete the inverse head-and-shoulders pattern.
Dogecoin bounced off the 20-day EMA but couldn’t break the barrier at $0.09, suggesting a negative sentiment. If the price falls below the moving averages, the pair could drop to the uptrend line. However, a rebound from the current level and a break above $0.09 could lead to a rally to the $0.10 to $0.11 resistance zone.
Chainlink bounced off the 20-day EMA but couldn’t sustain the recovery. The next stop on the downside is the breakout level at $17.32, which could witness a tough battle between bulls and bears. A rebound from this level could push the price to the 20-day EMA and later to the overhead resistance at $20.85. However, a break below $17.32 could suggest a potential trend change.
Polkadot’s recovery stalled near the 61.8% Fibonacci retracement level, indicating continued selling by bears. The 50-day SMA is an important support level to watch, and if it breaks, it could suggest weakening bullish momentum. The pair could then drop to the neckline and subsequently to $6. A rebound from the neckline could result in a range-bound action between $6 and $8.21.
This article does not provide investment advice or recommendations. Readers should conduct their own research before making any decisions.