Bitcoin (BTC) has managed to maintain its gains this week, indicating that traders are not looking to take profits even as the price approaches $70,000. The number of Bitcoin whales, which are unique addresses holding over 1,000 Bitcoin, has increased to 2,104 as of March 7, suggesting that they expect the upward trend to continue.
The rally in Bitcoin has had a positive impact on the overall sentiment in the cryptocurrency sector. Data from DefiLlama shows that the total value locked (TVL) in decentralized finance (DeFi) protocols has surpassed $100 billion for the first time in about two years. However, the TVL is still far below the record of $189 billion set in November 2021, even with the recent increase.
During a bull market, traders often become reckless and chase higher prices. However, Bitwise chief investment officer Matt Hougan has warned investors to be cautious, noting that “terrible projects” are trading at inflated valuations.
If Bitcoin continues to rise to new highs, it is likely that select altcoins will also experience a boost. Here are the top 5 cryptocurrencies that appear strong on the charts.
Bitcoin Price Analysis:
The bears are attempting to halt Bitcoin’s rally near $70,000, but the fact that the bulls have not given up much ground is a positive sign. This suggests that every minor dip is being met with buying pressure. The bulls will try to resume the uptrend by pushing the price above $70,000. If they succeed, the BTC/USDT pair could gather momentum and surge to $76,000. Although this level may pose a minor obstacle, a break above it could lead to a rally towards $80,000. On the other hand, if the bears want to make a comeback, they will need to aggressively sell and push the price below the 20-day exponential moving average ($61,422). This could trigger a deeper correction towards the 50-day simple moving average ($51,197).
Optimism Price Analysis:
Optimism has been on an uptrend in recent days. Breaking above the $4.20 resistance completed a bullish inverse head-and-shoulders pattern on March 5. The upward sloping 20-day EMA ($4.12) and the positive RSI indicate that the path of least resistance is to the upside. If buyers manage to drive the price above $4.87, the OP/USDT pair could rally towards the pattern target of $5.79. However, if the price sharply reverses from the current level and falls below the 20-day EMA, it would suggest that the breakout may have been a bear trap. In that case, the pair may drop to $3.42, and a break below this level would favor the bears.
Bittensor Price Analysis:
Bittensor (TAO) has retraced to the 20-day EMA ($646), which is an important short-term level to watch. If the price bounces off this level, it would indicate that the bulls are still in control and could lead to a break above $757. This would open the door for the TAO/USDT pair to resume its uptrend towards $846. However, if the price falls below the 20-day EMA, it would suggest that the bulls are taking profits, and the pair could slide to the 50-day SMA ($535). A break below the 50-day SMA would signal a potential trend change.
Stacks Price Analysis:
The bulls have successfully defended the 20-day EMA ($2.77) during the correction in Stacks (STX), indicating a positive sentiment where buyers continue to step in on dips. The solid bounce on March 10 shows that the bulls are back in control, but the long wick on the candlestick indicates that the bears are still present. To confirm the resumption of the uptrend, buyers will need to push the price above $3.39. If they succeed, the STX/USDT pair could rally to $4.58 and eventually to $5. However, if bears push the price below the 20-day EMA, it would suggest that the bulls are losing their grip, and the pair may fall to the 50-day SMA ($2.20).
Mantle Price Analysis:
Mantle (MNT) has been experiencing a rally, but the bears are attempting to stall it at $1.15, as seen from the long wick on the March 8 candlestick. The fact that the buyers have not allowed the price to stay below the psychological level of $1 is a minor advantage for them. The rising moving averages and the overbought RSI indicate that the bulls are in control. If buyers manage to push the price above $1.15, the MNT/USDT pair could continue its upward move towards $1.37 and $1.50. However, a downturn below the 20-day EMA ($0.91) would suggest a lack of demand at higher levels and could lead to a drop to $0.85 and subsequently $0.80.
Disclaimer: This article is not intended as investment advice and readers should conduct their own research before making any investment decisions.