Analyzing Crypto Market Trends: A Detailed Breakdown of Top 10 Cryptocurrencies
Summary:
This article analyzes the performance of the ten leading cryptocurrencies, focusing on recent market trends including Bitcoin's struggle to leverage its recent comeback and four straight days of net outflows from bitcoin spot ETFs. Factors such as shifts in investor sentiment, price resistance/suppression, predictions based on Fibonacci retracements, and exponential moving averages are examined. The report also highlights that CryptoQuant's analysis suggests the Bitcoin bull run is not over yet, given current levels of short-term holder investment.
Bitcoin (BTC) experienced a lack of traction following its solid March 20 resurgence, suggesting bears are selling in the wake of initial price rebounds. This sell-off has negatively influenced short-term market sentiment, leading to four consecutive days of net drainage from Bitcoin spot exchange-traded funds (ETFs), according to Farside Investors' data. Despite this, CryptoQuant reports that the Bitcoin bull market is far from finished. The firm, specialising in on-chain data analytics, notes that a bull market typically ends with an influx of investment from short-term holders by 84%-92%, whereas at present it stands at 48%.
The crypto market's daily view shows a necessary correction preceding the Bitcoin Halving, which aids in ensuring the bull market's longevity, since skyrocketing trajectories often lack sustainability. Each fall in value brings weak investors to the fore, allowing those with a more robust investment strategy to augment their stakes.
The focus now lies on whether Bitcoin and other cryptocurrencies will continue their downward spiral, or whether recovery is imminent. The top 10 cryptocurrencies' performance in the charts will reveal this information.
Bitcoin's prices reveal a strong rebound from the 38.2% Fibonacci retracement level of $61,736, indicating that traders regard these declines as prime opportunities for investment. The 20-day exponential moving average has levelled off, and the relative strength index hovers just above midpoint, implying potential near-term stagnancy. Bitcoin may encounter resistance at $69,000 and support at $60,775, but its steady performance near the peak highlights that investors are maintaining their stakes instead of hastily selling-off.
In terms of Ether (ETH)'s performance, whilst it rebounded from the 50-day SMA ($3,161) on March 20, investors could not drive the price above the 20-day EMA ($3,537). The price has declined from the 20-day EMA since March 22, signalling a shift in sentiment towards negativity and subsequent sell-offs.
BNB (BNB) experienced an increase from the 20-day EMA ($520) on March 20, but encountered resistance near $590. Investors can expect vigorous resistance at $590. However, if this is breached, BNB/USDT could continue its upward trend, potentially reaching $692.
Solana (SOL), XRP (XRP), and Cardano (ADA), too, witnessed a solid uptick in buying activities on March 20, yet demonstrated failure to surpass their respective resistance levels due to strong bearish activities.
Dogecoin's (DOGE) relief rally went beyond the 20-day EMA ($0.15) on March 20, indicating a strong buyer's market at lower levels. If the current level is maintained, the DOGE/USDT pair could likely take on the overhead resistance of $0.19.
Avalanche (AVAX) remains above the breakout level of $50, showing investors' efforts to establish this level as reliable support. Shiba Inu (SHIB)'s inability to rise above the breakdown level of $0.000029 shows bears capitalising on upturns. Meanwhile, Toncoin (TON) stands at a valuation of $4.60, encountering staunch resistance from bears.
Published At
3/22/2024 9:43:39 PM
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