Bitcoin (BTC) reached a new high above $69,200 on March 5 before experiencing a significant sell-off that brought the price below $60,000. This led to $1.17 billion in cross-crypto liquidations, according to Coinglass. However, despite the fall, investors continued to buy spot Bitcoin exchange-traded funds, with a net inflow of $648.9 million into Bitcoin ETFs. BlackRock’s iShares Bitcoin Trust (IBIT) ETF recorded its highest inflow of $788 million. This indicates a strong appetite for Bitcoin, which could result in shallow corrections if maintained.
When markets are rising sharply, traders often take on too much leverage, risking damage to their portfolios if they are not skilled at managing losses. Therefore, traders should exercise caution and follow trading rules when using leverage.
The question now is whether Bitcoin will extend its uptrend, pulling altcoins higher, or if the cryptocurrency market will enter a consolidation phase. Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin analysis:
Bitcoin has been in a strong uptrend for several days, with buyers seeing dips as buying opportunities. The recent drop to the 20-day exponential moving average ($58,131) was aggressively purchased, indicating solid demand at lower levels. Buyers are now pushing the price above $69,000 to potentially start the next leg of the uptrend to $76,000 and $80,000. However, bears will need to defend the $69,000 level and pull the price below the 20-day EMA to trigger a correction, bringing the price down to the 50-day simple moving average ($49,107).
Ether analysis:
Ether (ETH) broke above the $3,600 resistance on March 4 but faced selling pressure on March 5. However, buyers stepped in at the 20-day EMA ($3,233), indicating a positive sentiment. Buyers are now trying to maintain the price above $3,822 to initiate a rally towards $4,000 and $4,150. Bears will need to drag the price below the breakout level of $3,600 to deepen the pullback to the 20-day EMA and potentially trigger a breakdown.
BNB analysis:
BNB turned down from the resistance level of $427 on March 5 but found support at the 20-day EMA ($387). Buyers are now attempting to strengthen their position by keeping the price above $427, which could lead to a rally to $460. However, if the price fails to sustain above $427, it will indicate strong bearish defense, increasing the likelihood of a fall to the 50-day SMA ($341).
Solana analysis:
Solana reversed direction from the resistance of $143 on March 5 and fell to the 50-day SMA ($105). However, buyers aggressively protected the 50-day SMA, pushing the price above $126. They will now attempt to overcome the resistance at $143 to start the next leg of the uptrend to $158. A failure to sustain above the current level or the overhead resistance would suggest bearish strength, leading to a potential slide back to the 50-day SMA.
XRP analysis:
XRP turned down from $0.67 on March 5, indicating strong bearish defense at that level. However, buyers stepped in at the 50-day SMA ($0.55), continuing to show demand on dips. The XRP/USDT pair will attempt to clear the overhead hurdle at $0.67 to start a journey towards $0.74. If bears defend the $0.67 level, the pair may enter a range-bound action between the 50-day SMA and $0.67 for a period.
Cardano analysis:
Cardano turned down from $0.80 on March 4 but found support at the 50-day SMA ($0.56). Bulls aggressively bought the dip, resulting in a close above the breakout level of $0.68. This indicates a bullish sentiment, with a potential rally towards the overhead resistance of $0.80. However, a turn down and close below the 20-day EMA ($0.65) would invalidate this positive sentiment and could lead to a slump to the 50-day SMA.
Dogecoin analysis:
Dogecoin rose above the $0.16 resistance on March 4 but faced profit booking on March 5. Buyers are now struggling to maintain the price above $0.16, indicating ongoing selling pressure. If the price turns down from the current level or the overhead resistance, the DOGE/USDT pair may slump to the 20-day EMA ($0.12), where buyers are likely to step in. However, sustaining the price above $0.16 could lead to a gradual retest of the local high at $0.20, potentially signaling the start of the next leg of the uptrend to $0.30.
Shiba Inu analysis:
Shiba Inu has been in a strong bull run, with buyers pushing the price to $0.000045 on March 5. However, the higher levels could not be sustained, resulting in a pullback to $0.000025. Aggressive buying at the lower levels indicates solid demand on dips. The SHIB/USDT pair may remain range-bound between $0.000025 and $0.000045 for a few days, with the deeply overbought level on the RSI suggesting a possible correction or consolidation in the near term.
Avalanche analysis:
Avalanche failed to start an uptrend after completing the inverse head-and-shoulders pattern, leading to short-term traders dumping their positions on March 5. The pair fell below the 50-day SMA ($37.04), but buyers quickly stepped in, resulting in a recovery. Bulls are now attempting to push the price back above the overhead resistance of $42, with a potential retest of the psychological resistance at $50. The 50-day SMA and $35 are crucial support levels to watch.
Polkadot analysis:
Polkadot surged to $10.76 on March 5 but faced profit booking, leading to a dip below the 20-day EMA ($8.57). However, buyers continue to show interest at lower levels, pushing the price above the breakout level of $9.59. If sustained, this could lead to a rise towards the overhead resistance of $10.80. The pair may consolidate between the 20-day EMA and $10.80 for a while as volatility decreases.
Disclaimer: This article does not provide investment advice or recommendations. Readers should conduct their own research before making investment decisions.