Bitcoin (BTC) has managed to maintain its gains this week, indicating that traders are not eager to book profits despite the price nearing $70,000. The number of Bitcoin whales, which refers to unique addresses holding more than 1,000 Bitcoin, has increased to 2,104 as of March 7, suggesting that they expect the upward trend to continue.
Bitcoin’s rally has also had a positive impact on the overall sentiment in the cryptocurrency sector. Data from DefiLlama shows that the total value locked (TVL) in decentralized finance (DeFi) protocols has surpassed $100 billion for the first time in about two years. However, the TVL is still far below the record of $189 billion set in November 2021, despite the recent increase.
During a bull market, traders often become less cautious and chase higher prices, but this behavior can lead to negative outcomes. Bitwise chief investment officer Matt Hougan has cautioned investors to be careful, noting that “terrible projects” are trading at inflated valuations.
If Bitcoin continues to rise to new highs, it is likely that select altcoins will also experience gains. Let’s take a look at the top 5 cryptocurrencies that appear strong based on their charts.
Bitcoin Price Analysis
The bears are attempting to halt Bitcoin’s rally near $70,000, but the fact that the bulls have not given up much ground is a positive sign. This suggests that every minor dip is being bought, indicating strong buying pressure.
The bulls will try to resume the upward trend by pushing the price above $70,000. If they succeed, the BTC/USDT pair is likely to gain momentum and surge to $76,000. While this level may pose as a slight obstacle, if it is surpassed, the rally could reach $80,000.
On the other hand, if the bears want to make a comeback, they will need to sell aggressively and push the price below the 20-day exponential moving average ($61,422). This could trigger a deeper correction towards the 50-day simple moving average ($51,197) as several short-term traders’ stop-loss orders are hit.
Both moving averages are upward sloping, and the relative strength index (RSI) is in positive territory on the 4-hour chart, indicating that the bulls are in control. Buyers have consistently kept the price above the 20-day exponential moving average, indicating a buy-on-dip sentiment. A close above $70,000 could initiate the next leg of the uptrend.
However, if the price turns downwards and breaks below the 20-day exponential moving average, the pair may slide towards the 50-day simple moving average. A close below this support level would be the first sign that the bulls may be losing control, potentially leading to a deeper correction towards $59,000.
Optimism Price Analysis
Optimism has been on an uptrend in recent days. The breakout above the $4.20 resistance completed a bullish inverse head-and-shoulders pattern on March 5.
The upward-sloping 20-day exponential moving average and the positive zone reading on the relative strength index (RSI) indicate that the path of least resistance is to the upside. If buyers can drive the price above $4.87, the OP/USDT pair could rally towards the pattern target of $5.79.
However, if the price sharply turns downwards from the current level and breaks below the 20-day exponential moving average, it would signal that the breakout may have been a bear trap. In that case, the pair may drop to $3.42. A break below this level would favor the bears.
The pair has managed to hold the price above the breakout level of $4.20, indicating a positive sentiment where every slight dip is being bought. Buyers will aim to overcome the barrier at $4.87 and establish their dominance. If successful, the pair may climb to $5, where the bears may put up a strong defense.
The first sign of weakness would be a break and close below the 50-day simple moving average, which would increase the likelihood of a retest of $4.20. The bears would need to push the price below this support level to suggest the start of a corrective phase.
Bittensor Price Analysis
Bittensor (TAO) has retraced to the 20-day exponential moving average, which is an important short-term level to watch.
If the price bounces off the 20-day exponential moving average, it would suggest that the bulls are still in control. This would increase the likelihood of a break above $757, which could lead the TAO/USDT pair to resume its uptrend towards $846.
On the other hand, if the price drops below the 20-day exponential moving average, it would suggest that the bulls are booking profits rapidly. In that case, the pair may slide towards the 50-day simple moving average. A break below this support level would indicate a potential trend change in favor of the bears.
The 4-hour chart shows that the bulls are struggling to sustain the price above the $700 level, indicating that the bears are still selling on rallies. If the price remains below the 50-day simple moving average, the next stop could be $617. If this level fails to hold, the pair may drop to $550.
However, if the price rebounds from the current level, it would indicate that the bulls are attempting to turn the $700 level into support. If successful, the pair may retest $757, which is likely to be broken. This could result in a surge towards $850.
Stacks Price Analysis
The bulls successfully defended the 20-day exponential moving average during the correction in Stacks (STX), indicating a positive sentiment where the bulls continue to buy the dips.
The solid bounce on March 10 shows that the bulls are back in full force, although the long wick on the candlestick suggests that the bears are still putting up a fight. To confirm the resumption of the uptrend, buyers will need to push the price above $3.39. If successful, the STX/USDT pair could jump to $4.58 and potentially reach the psychologically important level of $5.
The 20-day exponential moving average remains a crucial level to watch on the downside. If the bears pull the price below this support level, it would suggest that the bulls are losing their grip. In that case, the pair may fall to the 50-day simple moving average.
The 4-hour chart shows that the price surged after breaking above the downtrend line, but the failure to surpass the $3.39 level resulted in profit booking. The price has now dipped to the downtrend line. A strong rebound from this level would increase the chances of a break above $3.39.
However, if the price continues to decline and breaks below the moving averages, it would indicate that the bears are still active at higher levels. This could lead to a decline towards $2.40 and eventually $2.20.
Mantle Price Analysis
Mantle (MNT) has been experiencing a strong rally, but the bears are attempting to stall it at $1.15, as shown by the long wick on the March 8 candlestick.
A minor advantage for the buyers is that they have not allowed the price to stay below the psychological level of $1. The rising moving averages and the overbought zone reading on the RSI indicate that the bulls are in control.
If buyers manage to push the price above $1.15, the MNT/USDT pair could continue its upward move towards $1.37 and then $1.50. However, if the price turns downwards and falls below the 20-day exponential moving average, it would suggest a potential bear trap. In that case, the pair may drop to $0.85 and subsequently to $0.80.
On the 4-hour chart, the bulls are trying to establish the breakout level of $1.01 as support. If successful, it would indicate strong buying at lower levels. If buyers can push the price above $1.07, the pair may reach $1.15. A break above this level could signal a pick-up in momentum.
Conversely, if the bears push the price back below $1.01, it would suggest a lack of demand at higher levels. There is minor support at the 50-day simple moving average, but if this level is breached, the pair may drop to $0.85.
Disclaimer: This article is for informational purposes only and does not constitute investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.