Bitcoin (BTC) reached a new all-time high above $69,200 on March 5 but faced significant selling pressure, causing the price to drop below $60,000. This resulted in $1.17 billion in cross-crypto liquidations, according to Coinglass. Despite the fall, investors remained bullish on Bitcoin ETFs, with a net inflow of $648.9 million into Bitcoin ETFs, and BlackRock’s iShares Bitcoin Trust (IBIT) ETF recording its highest inflow of $788 million. This indicates a strong appetite for Bitcoin, suggesting that any corrections are likely to be shallow.
During periods of sharp market growth, traders often take on excessive leverage, which can be profitable in the short term but can also lead to portfolio damage if losses are not managed effectively. Therefore, traders should exercise caution and follow trading rules when using leverage.
The question now is whether Bitcoin will continue its uptrend and pull altcoins higher, or if the cryptocurrency market will enter a consolidation phase. Let’s examine the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis:
Bitcoin has been in a strong uptrend for several days, with traders viewing dips as buying opportunities. On March 5, the bulls aggressively bought the dip to the 20-day exponential moving average ($58,131), indicating strong demand at lower levels. Buyers are now attempting to push the price above $69,000, which could lead the BTC/USDT pair to continue its uptrend towards $76,000 and $80,000. However, the bears will need to defend the $69,000 level and push the price below the 20-day EMA to initiate a correction. In this case, the pair could see a sharp drop to the 50-day simple moving average ($49,107).
Ether Price Analysis:
Ether (ETH) broke above the $3,600 resistance on March 4 but faced selling pressure on March 5. However, buyers stepped in at the 20-day EMA ($3,233), indicating a positive sentiment. Bulls are now trying to maintain the price above $3,822, which could trigger a rally towards $4,000 and $4,150. On the other hand, if bears manage to push the price below the breakout level of $3,600, it could lead to a deeper pullback towards the 20-day EMA.
BNB Price Analysis:
BNB turned down from the resistance of $427 on March 5 but found strong support at the 20-day EMA ($387). Bulls are now trying to maintain the price above $427, which could lead to a rally towards $460. However, if the price fails to sustain above $427, it would indicate strong resistance from bears and increase the likelihood of a fall to the 50-day SMA ($341).
Solana Price Analysis:
Solana reversed direction from the resistance of $143 on March 5 and fell to the 50-day SMA ($105). However, bulls aggressively defended the 50-day SMA, pushing the price above $126. They will now attempt to overcome the barrier at $143, which could trigger a rally towards $158. But if the price turns down from the current level or the overhead resistance, it would indicate persistent bearish pressure and could lead to another drop to the 50-day SMA.
XRP Price Analysis:
XRP turned down from $0.67 on March 5, indicating strong resistance from bears. However, buyers continue to step in at the 50-day SMA ($0.55). The XRP/USDT pair will make another attempt to clear the overhead hurdle at $0.67 and potentially reach $0.74. Conversely, if bears defend the $0.67 level, it could result in a range-bound market between the 50-day SMA and $0.67.
Cardano Price Analysis:
Cardano turned down from $0.80 on March 4 and fell to the 50-day SMA ($0.56) on March 5. However, bulls aggressively bought the dip near the 50-day SMA, pushing the price above the breakout level of $0.68. This indicates a bullish sentiment, and if the price continues to rise, the ADA/USDT pair could reach the overhead resistance of $0.80. But if the price turns down and closes below the 20-day EMA ($0.65), it could lead to a drop to the 50-day SMA.
Dogecoin Price Analysis:
Dogecoin rose above the $0.16 resistance on March 4 but faced selling pressure on March 5. Buyers are now struggling to maintain the price above $0.16, indicating continued selling on rallies. If the price turns down from the current level or the overhead resistance, the DOGE/USDT pair may drop to the 20-day EMA ($0.12), where buyers are likely to step in. However, if buyers sustain the price above $0.16, the pair could gradually retest the local high at $0.20 and potentially move towards $0.30.
Shiba Inu Price Analysis:
Shiba Inu has been on a strong bull run, but the price could not sustain higher levels, leading to a wave of selling. However, the lower levels were aggressively purchased, indicating solid demand on dips. The SHIB/USDT pair may now remain range-bound between $0.000025 on the downside and $0.000045 on the upside. The deeply overbought level on the RSI suggests a possible correction or consolidation in the near term.
Avalanche Price Analysis:
Avalanche failed to start an uptrend after completing the inverse head-and-shoulders pattern, leading short-term traders to sell their positions on March 5. The price dropped below the 50-day SMA ($37.04), but buyers quickly stepped in to push the price back up. Bulls are trying to clear the overhead resistance at $42, and if successful, they may face resistance near $44. A break and close above $44 would indicate a bullish trend, potentially leading to a retest of the psychological resistance at $50.
Polkadot Price Analysis:
Polkadot surged to $10.76 on March 5 but faced profit booking, causing the price to drop below the 20-day EMA ($8.57). However, buyers continue to show interest at lower levels. Bulls are now attempting to sustain the price above the breakout level of $9.59, which could lead to a rise towards the overhead resistance of $10.80. The pair may consolidate between the 20-day EMA and $10.80 for some time.
Please note that this article does not provide investment advice or recommendations. Traders should conduct their own research and analysis before making any investment decisions.