Bitcoin’s recent rally could be experiencing a short-term pullback, leading to a decrease in inflows into Bitcoin exchange-traded funds (ETFs). This slowdown in inflows could potentially trigger a corrective phase if the current trend continues. In previous halving cycles, Bitcoin has seen significant drops of up to 40%, suggesting that it could potentially plummet to around $45,500.
Despite the pullback, it is worth noting that this correction is primarily due to profit-booking on hedges and has not led to panic shorting. Corrections are a normal part of every bull market, and the fact that panic selling has not yet occurred is a positive sign.
The question now is whether the correction will deepen or if prices will rebound from current levels. To determine this, let’s analyze the charts of the top 10 cryptocurrencies.
Bitcoin has experienced profit booking at $73,777, but the bulls have bought the dip, as seen from the long tail on the candlestick. However, the failure to maintain momentum on March 15 has led to strong selling by short-term traders. The price is now at the support line of the ascending channel pattern, which is a crucial level to monitor. If the price drops below the channel and the 20-day exponential moving average ($65,195), it could indicate the start of a corrective phase, potentially leading to a slide to $59,000 and then the 50-day simple moving average ($54,291). On the other hand, if the price bounces off the support line, it suggests that the pair may remain inside the channel for some time, with the bulls attempting to push the price above the overhead resistance at $73,777.
Ether’s upward movement stalled near $4,000, leading to profit-booking by short-term traders. The long tail on the candlestick shows that bulls attempted to flip the $3,600 level into support, but the fall on March 15 indicates that bears are exerting pressure. The battle between bulls and bears is likely to intensify near $3,600. If the price rebounds from this support, the bulls may push the ETH/USDT pair to $4,000, while bears are expected to defend this level aggressively. On the downside, if bears manage to push the price below $3,600, selling could accelerate, potentially causing the pair to slump to $3,200 and later the 50-day SMA ($2,997).
BNB has experienced a pullback during its strong uptrend, suggesting that traders are booking profits after a sharp rally. However, the long tail on the candlestick shows that bulls are not giving up and are buying at the 38.2% Fibonacci retracement level of $527.50. A shallow pullback is a positive sign, indicating that bulls are not waiting for a deeper correction to enter the market. This increases the possibility of a break above $633, which could lead to a climb to the $670 to $692 resistance zone. Conversely, if the price turns down from the current level and breaks below $527, it could signal that every rally is being sold into, potentially causing the pair to tumble to the 20-day EMA ($485).
Solana has been in a strong uptrend, indicating solid demand at higher levels. However, the RSI is deep in overbought territory, suggesting that the pair may have risen too quickly in a short period. This could lead to a correction, potentially pulling the pair to the 20-day EMA ($142). If the price rebounds from this level, it suggests positive sentiment and buying on dips, enhancing the prospects of a rally to $205. On the other hand, a break below the 20-day EMA could negate this view, causing the pair to slump to the breakout level at $126.
XRP turned down from $0.74, indicating strong resistance from bears. Bulls attempted to flip $0.67 into support, but the bears continued selling and pulled the price below this level. The selling intensified on March 15, and the XRP/USDT pair broke below the 20-day EMA ($0.62), suggesting that the pair may consolidate within a large range between $0.50 and $0.74 for some time. A break and close above $0.74 will signal the start of a new uptrend toward $1.02.
Cardano faced selling at higher levels when bulls tried to push the price above the overhead resistance of $0.80. The price sharply turned down, dipping to the breakout level of $0.68. If bears push the price below $0.68, it could signal the start of a deeper correction toward the 50-day SMA ($0.61). On the other hand, if the price rebounds from $0.68, it suggests that bulls continue to buy near strong support levels. The ADA/USDT pair could then swing between $0.68 and $0.80, with a break above $0.80 potentially launching the pair to $0.92.
Dogecoin rose above the $0.18 resistance but faced selling at higher levels. The price sharply turned down, reaching the 20-day EMA ($0.15). This suggests that the DOGE/USDT pair may remain range-bound for a few more days. A break and close below $0.15 will favor the bears, potentially causing the pair to tumble toward $0.12. Conversely, a rally above $0.18 suggests that the bulls have absorbed the supply, opening the door for a rally to $0.24 and then $0.30.
Avalanche witnessed indecision between bulls and bears on March 14, with a large range day featuring a long wick and tail. Bears attempted to strengthen their position on March 15, but strong buying near the breakout level of $50 pushed the price back up. Bulls are now trying to flip $50 into support, and if successful, the AVAX/USDT pair could resume its uptrend to $87. However, if bears maintain the price below the 20-day EMA, the pair could decline to the 50-day SMA ($40).
Shiba Inu tumbled below the $0.000029 support, indicating bearish dominance. Bulls are attempting to defend the 20-day EMA ($0.000027), but a recovery is expected to face selling at the downtrend line. If the price turns lower from the downtrend line, it increases the likelihood of a slide to the 61.8% Fibonacci retracement level of $0.000023 and then $0.000019. However, if the price breaks above the downtrend line, it suggests a rejection of lower levels, potentially causing the SHIB/USDT pair to rally to the overhead resistance of $0.000039.
Polkadot turned down from $11.88, and the selling momentum increased on March 15. The negative divergence on the RSI indicates waning bullish momentum, increasing the risk of a drop below the 20-day EMA ($9.93) and the breakout level of $9.59. If that occurs, the DOT/USDT pair may experience a deeper pullback, potentially declining to the 50-day SMA ($8.23). On the other hand, if the price rebounds strongly from the 20-day EMA, bulls will attempt to push the price to $11.88.
Please note that this article does not provide investment advice or recommendations. It is important for readers to conduct their own research and make informed decisions when investing or trading.