Bitcoin (BTC) witnessed profit-booking in the past few days, but the bears could not sink the price below $64,500. However, Bitcoin may come under renewed selling pressure if history repeats itself.
Crypto analyst Rekt Capital said in a X post that Bitcoin was about to enter the “Danger Zone” when it tends to correct. That period happens to be 14 to 28 days leading up to the halving, which is expected on April 20 in this cycle. In 2020, Bitcoin had fallen 20% during the said period, while in 2016, the correction was 40%.
Analysts will closely monitor the inflows into the spot Bitcoin exchange-traded funds (ETFs). If inflows remain steady during a pullback in Bitcoin, then the likelihood of the uptrend continuing remains high. However, if inflows dry up considerably, then the next leg of the uptrend may get delayed.
What are the important support levels to watch out for in Bitcoin and altcoins? Let’s analyze the charts to find out.
S&P 500 Index price analysis
The S&P 500 Index turned down from 5,180 last week but bounced off the support line of the ascending channel pattern.
The bulls will try to propel the price above the overhead resistance of 5,189. If they succeed, the index may climb to the channel’s resistance line. This level is likely to attract strong selling by the bears. If the price turns down from the resistance line, the index may remain inside the channel for some more time.
The uptrend could accelerate if buyers thrust the price above the channel. The index could then jump to 5,450. On the downside, a break below the 20-day exponential moving average (5,100) could start a decline toward the 50-day simple moving average (4,972).
U.S. Dollar Index price analysis
The U.S. Dollar Index (DXY) has pulled back to the moving averages, indicating solid buying at lower levels.
Both moving averages have flattened out, and the RSI is near the midpoint, indicating a balance between supply and demand. If the price stays above the moving averages, the index could rise to 105, where the bears are expected to mount a strong defense.
Alternatively, if the price turns down from the moving averages, the bears will make one more attempt to sink the index to 102. This level is likely to attract strong buying because if it cracks, the index may drop to 101.
Bitcoin price analysis
Bitcoin bounced off the 20-day EMA ($65,830) on March 17, indicating that the bulls continue to buy on dips to strong support levels.
The BTC/USDT pair faces resistance at the breakdown level from the ascending channel pattern. If the price turns lower and breaks below the 20-day EMA, it will signal that the bears have flipped the channel’s support line into resistance. That increases the risk of a fall to $59,000.
Instead, if the bulls push the price back into the channel, it will suggest that the markets have rejected the breakdown. The bulls will again try to drive the pair to $73,777. A break above this level will open the doors for a potential rise to $80,000.
Ether price analysis
Ether (ETH) plunged below the 20-day EMA ($3,619) on March 16, but the bears are struggling to sustain the lower levels.
The bulls are trying to push the price back above the 20-day EMA and trap the aggressive bears. If they manage to do that, the ETH/USDT pair could attempt a rally toward the overhead resistance of $4,093. A break above this level will indicate the resumption of the uptrend.
Contrarily, if the price turns down and breaks below $3,400, it will suggest that the sentiment has turned negative and traders are selling on rallies. The pair could then slide to $3,200 and later to the 50-day SMA ($3,077).
Solana price analysis
Solana (SOL) has been in a strong uptrend for several days, with no signs of a slowdown. The bears tried to start a pullback on March 15, but the bulls aggressively purchased the dip.
The price has reached the overhead resistance of $205, which may prove to be a formidable hurdle to cross. However, if the bulls prevail, the SOL/USDT pair could start its journey toward the all-time high of $260.
The risk to the upside is that the RSI has risen deep into the overbought territory, suggesting that the rally may be extended in the short term. This points to a possible consolidation or correction in the near term. The support to watch on the downside is the 20-day EMA ($156). A break below this level will suggest a short-term trend change.
BNB price analysis
BNB (BNB) has pulled back in a strong uptrend, but a minor positive is that the bulls have not allowed the price to dip below the 38.2% Fibonacci retracement level of $534.
The rising moving averages and the RSI in the positive territory suggest that bulls have the upper hand. If the price rises above $591, the BNB/USDT pair could retest the overhead resistance at $645.
On the contrary, if the price turns down and breaks below $534, it will suggest that bears are in the driver’s seat. The pair could then tumble to the 20-day EMA ($509). This is a crucial support to watch out for because a break below it may accelerate selling and sink the pair to $460.
XRP price analysis
XRP (XRP) slipped below the 20-day EMA ($0.62) on March 16, indicating that the bulls are losing their grip.
Buyers attempted a recovery on March 17 but could not clear the overhead hurdle at the 20-day EMA. The price has turned lower from the 20-day EMA on March 18, suggesting that the bears are active at higher levels. The XRP/USDT pair could dive to the uptrend line.
Meanwhile, the bulls are likely to have other plans. They will try to push the pair above the 20-day EMA and start a robust recovery. The pair could first climb to $0.67 and thereafter to the overhead resistance at $0.74.
Related: Ether ETF is less likely than Bitcoin ETF was: Recharge Capital founder
Cardano price analysis
Cardano (ADA) bounced off the 50-day SMA ($0.62) on March 17, but the bulls are struggling to push the price above the 20-day EMA ($0.70) on March 18.
The price has turned down from the 20-day EMA, signaling that the bears are selling on rallies. That increases the likelihood of a break below the 50-day SMA. If that happens, the ADA/USDT pair could drop to $0.57.
This bearish view will be negated if the price rises and breaks above the 20-day EMA. The bulls will again try to propel the price to the overhead resistance of $0.81. A break and close above this level will suggest the start of the rally to $0.92.
Avalanche price analysis
Avalanche (AVAX) rebounded sharply off the $50 level on March 17, signaling aggressive buying at lower levels,
The bulls have pushed the price above the overhead resistance of $61.50 on March 18, indicating the start of the next leg of the uptrend. If buyers sustain the breakout, the AVAX/USDT pair could climb to $87.
Contrary to this assumption, if the price fails to maintain above $61.50, it will suggest a lack of demand at higher levels. The pair may remain range-bound between $50 and $62 for a few more days.
Dogecoin price analysis
Dogecoin (DOGE) plummeted below the $0.15 support on March 16, suggesting that the bears are trying to seize control.
The bulls pushed the price back above the 20-day EMA ($0.15) on March 17, but could not build upon this strength. This shows that every recovery attempt is being sold. The bears are trying to sink the price below $0.14 on March 18. If they manage to do that, the DOGE/USDT pair could slide to the 50-day SMA ($0.11).
If bulls want to prevent the fall, they will have to push and maintain the price above $0.16. That may keep the pair inside the $0.15 to $0.19 range for a while longer.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
