Bitcoin Wades through "Danger Zone" amid Major Movements in Altcoins: A Comprehensive Crypto Analysis
Summary:
This article analyses the performance of Bitcoin and altcoins. Despite profit-taking over the last few days, Bitcoin's price remained above $64,500. Crypto analyst Rekt Capital suggests the currency is entering a “Danger Zone” for correction. Other digital currencies covered include Ether, which faces resistance at $4,093, Solana, maintaining an upward trend, BNB, which may retest the resistance at $645, and Dogecoin, which has experienced a fall below $0.15. The article concludes with a disclaimer reminding readers of the inherent risks associated with trading and investing.
Over the past few days, Bitcoin (BTC) experienced some profit-taking, but the price held steady above $64,500. The potential for a renewed sell-off could increase if history is any indication. Crypto analyst Rekt Capital noted in a post that Bitcoin might be edging towards a correction, famously known as the "Danger Zone", which typically takes place 14 to 28 days prior to the halving, slated in this cycle for April 20. As a precedent, in 2020, Bitcoin's value reduced by 20% in this period, and in 2016, it fell by a staggering 40%. Daily crypto market performance data will be provided by Coin360.
The flow of funds into Bitcoin exchange-traded funds (ETFs) on the spot market will be carefully tracked by analysts. If these inflows remain consistent during a Bitcoin dip, it suggests a likely continuation of the upward trend. However, if the inflows substantially decline, it may delay the next growth phase.
Let's delve into the charts to comprehend the key support levels in Bitcoin and altcoins.
S&P 500 index analysis indicates that the index dropped from 5,180 last week but rebounded from the support line of the upward channel pattern. Bulls will attempt to drive the price over the 5,189 resistance. If they succeed in this, the index could find its way to the upper boundary of the channel, which will likely incite significant selling from the bears. If the price declines from this point, the index may stay within the channel a bit longer.
The U.S. Dollar Index (DXY) retreated to the moving averages, indicating healthy purchasing activity at lower levels. The trends of both moving averages are flat, and the RSI is hovering around the midpoint, suggesting an equilibrium between supply and demand.
Seeing Bitcoin rebound off the 20-day EMA ($65,830) on March 17 signals that dip buying continues at robust support levels. However, the BTC/USDT pair faces resistance at the descent from the ascending channel pattern. If the price decreases and breaks down the 20-day EMA, this signals a potential fall to $59,000.
Ether (ETH) slipped below the 20-day EMA ($3,619) on March 16, but the low levels couldn't sustain. Bulls seek to press the price over the 20-day EMA and trap aggressive bears. If successful, the ETH/USDT pair will likely move towards the overhead resistance of $4,093.
In contrast, if the price drops and breaks past $3,400, it suggests a change in sentiment, prompting investors to sell on rallies.
Solana (SOL) maintains an impressive upward trend. When bears attempted to launch a reversal on March 15, bulls aggressively bought the dip.
BNB (BNB), though in a solid uptrend, experienced a retraction. A minor positive is that the bulls have managed to prevent the price from sinking below the 38.2% Fibonacci retracement level of $534. If the price can rise above $591, the BNB/USDT pair may retest the overhead resistance at $645.
XRP (XRP) dipped below the 20-day EMA ($0.62) on March 16, pointing towards bulls losing control. If the XRP/USDT pair could cut through the uptrend line, this is a win for the bulls.
Cardano (ADA) has risen off the 50-day SMA ($0.62) on March 17, but the bulls find it challenging to propel the price above the 20-day EMA ($0.70) on March 18.
Avalanche (AVAX) saw a sharp rebound off the $50 mark on March 17, pointing towards aggressive buying at lower levels.
Dogecoin (DOGE) fell below the $0.15 support on March 16, indicating a potential bearish takeover. The bulls managed to push the price back above the 20-day EMA ($0.15) on March 17, although they couldn't build on this strength.
This article should not be taken as financial advice or recommendations. Investing and trading always carry inherent risks, which prompts the need for readers to undertake their own due diligence before making any decisions.
Published At
3/18/2024 9:30:00 PM
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