Due to rising inflation and geopolitical turmoil, Bitcoin ( BitcoinTC ) will face a difficult environment in 2022. While Bitcoin has performed better than gold year-to-date (source: Bloomberg Intelligence), Mike McGlone, senior commodity strategist at Bloomberg Intelligence believes that Bitcoin may make a strong comeback. McGlone believes that the current conditions will “mark another milestone” in Bitcoin’s maturation.
A bullish sign for long-term is the fact that Bitcoin miners have been growing their Bitcoin holdings ever since 2021. Whit Gibbs, Compass Mining CEO and founder, stated to Cointelegraph that Bitcoin miners are taking a more bullish approach to Bitcoin.
Do Kwon, founder of Terraform Labs, stated that TerraUSD (UST), its stablecoin, will be backed with more than $10 million in Bitcoin reserve funds. Do Kwon believes this will “open up a new monetary age of the Bitcoin standard.”
Will Bitcoin and other altcoins be able to find buyers at dips, or will they trap aggressive bulls? Let’s look at the charts for the top 10 cryptocurrencies to see what happens.
Bitcoin closed above its 50-day simple moving mean ($40,311) March 16, but the bulls aren’t able to capitalize on this breakthrough. This indicates that demand is drying up at higher levels.
Bears will attempt to profit from this opportunity and bring the price below its 20-day exponential moving mean ($39,973). If they succeed, the BTC/USDT exchange pair could drop again to $37,000 as strong support.
If the price bounces off the moving averages it will indicate that sentiment is positive and traders are buying dips. The bulls will attempt to push the price higher than $42,600, and then extend the rally to $45,400.
Ether ( Ethereum) closed above the 50 day SMA ($2,780), on March 16, indicating a strong recovery by the bulls. Today’s dip was held by the buyers, who are trying to extend the recovery.
The relative strength index has jumped into positive territory, and the 20-day EMA ($2,700), has begun to rise. This indicates that the path of least resistance to the upside is now. The ETH/USDT pair may rally to the resistance line in the symmetrical triangle if the price holds above the 50-day SMA. At this level, the bears will mount a strong defense.
If the price falls below the moving averages and goes down from its current level, this positive outlook will be invalidated. The support line of triangle could be reached and the pair could fall.
The 50-day SMA (389) is proving difficult for Binance Coin ( BNB). This is the fourth time that the bears have been a challenge at this level. The 50-day SMA is a crucial level to monitor on the upside.
The RSI close to the midpoint and the flat moving averages suggest a balance in supply and demand. It will signal a possible shift in trend if buyers push the price higher than the 50-day SMA for three consecutive day. The BNB/USDT pairing could then begin its upward march towards $445.
The bears will try to pull the pair towards the $350 support level if the price drops below the 20-day EMA (382).
XRP has bounced off of the 50-day SMA ($0.74) March 15, but the bulls are not able to break the downtrend line. This indicates that bears are selling rallies.
The bears will attempt to lower the price below the moving medians. If they succeed, the XRP/USDT exchange rate pair could fall to $0.68. The decline could reach $0.62 if this support is also broken.
If the price bounces above the moving averages it could indicate that bulls are buying dips. This could increase the chances of a break above the downtrend line. The pair could rally to $0.91.
Terra’s LUNA token fell below the $20 EMA ($84), suggesting profit-booking by short-term traders.
The 20-day EMA is flattened and the RSI dropped to the midpoint. This indicates that bullish momentum could be waning. If the price falls below the 20-day EMA the bears will attempt to pull the LUNA/USDT pairing towards the strong support of $70.
Contrary to popular belief, bulls will attempt to push the price higher than $96 if the price recovers from its current level. The pair could reach its all-time high of $105.
Solana ( SOL), rose above the 20 day EMA ($86) March 16, but the bulls couldn’t push the price higher than the downtrend line. This shows that the bears remain active at higher levels.
Now, the sellers will attempt to lower the price below the strong support area between $81- $75. If it succeeds, the price will form a descending triangle pattern. The SOL/USDT pair may plummet to $66.
The flattening moving mean and positive divergence of the RSI indicate that bearish momentum is weakening. If the price bounces off the support zone, bulls will attempt to break the barrier at the downtrendline and push the pair towards $106.
Cardano ( ADA), is experiencing stiff resistance at the 20 day EMA ($0.84), which suggests that bears are aggressively defending this level.
The flattening 20 day EMA and positive divergence in the RSI indicate that selling pressure is waning.
The ADA/USDT currency pair should not lose much ground over the current level. This will indicate that traders are holding onto their positions in anticipation of a higher price. The overhead resistance at $1 could become the next stop if the price breaks above the 20-day EMA.
If the price falls below $0.74, this positive outlook will be invalidated. This could lead to the pair resuming its downward trend and falling to $0.68.
Related: Bitcoin could see a $37.5K weekend dip, before a ‘bigger movement’ next week — New report
Avalanche ( AVAX ) broke above the moving Averages on March 17, and reached the downtrend line in the descending channel. This resistance will be met with strong resistance by the bears.
Buyers may be able to take advantage of the flattish moving averages, and the RSI just below the midpoint. The chances of a break above the channel are better if bulls can maintain the price above the $20-day EMA ($75).
The first sign that there is a change in trend will be a close above the channel. The bulls will attempt to push the price towards the psychological level of $100.
If the price falls below the 20-day EMA, this positive outlook will be discredited in the short-term. If the price falls below the 20-day EMA, then the AVAX/USDT exchange rate could drop to an uptrend line.
Polkadot ( DOT) closed above the 50 day SMA ($18) March 16, but the bulls couldn’t sustain the price above $19. This indicates that the bears don’t want to lose heart.
Although the overhead resistance has been broken, the price is now falling. However, it is positive that bulls are trying to protect the moving averages. The price will rebound off the moving averages if it is able to break above the overhead resistance. The USDT/DOTT pair could then begin its journey towards $23.
The pair could fall to $16 if it falls below the $20-day EMA ($17). For a few days, the pair could extend its stay within the $16-$19 range.
Dogecoin ( DOGE) has again declined from the 20-day EMA ($0.12) March 17, indicating that bears are continuing to sell at resistance levels.
Now, the sellers will try to bring the price down below the support level at $0.10. The DOGE/USDT pair may bounce here if the price continues to rise.
A break above the 20-day EMA will signal strength. This could cause the price to rise to the 50-day SMA ($0.13). However, it may also act as strong resistance.
A break above the resistance and close below it could attract buyers, opening up the possibility of a rally to $0.17. A break and close below $0.10 would indicate a resumption in the downtrend.
These views and opinions are the author’s and do not necessarily reflect those of Cointelegraph. Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.
Market data are provided by HitBTC Exchange.