Analyzing Prices on 3/11: SPX, DXY, BTC, ETH, BNB, SOL, XRP, ADA, DOGE, SHIB

Bitcoin (BTC) bulls continue to dominate the market as they push the price above $70,000, indicating strong demand from traders. Bitwise chief investment officer, Matt Hougan, stated in a memo to investors that professional investors are eagerly awaiting the launch of Bitcoin exchange-traded funds (ETFs). Despite this anticipation, the demand for Bitcoin ETFs remains high, with spot Bitcoin ETFs currently holding 4.06% of the total Bitcoin supply, and projected to reach 8.65% on an annual basis if the buying trend continues.
MicroStrategy, the well-known digital asset investment firm, recently announced that it has purchased an additional 12,000 Bitcoin at an average price of $68,477, using funds from its $800 million convertible note offering. This brings MicroStrategy’s total Bitcoin holdings to 205,000, acquired at an average price of $33,706 per Bitcoin.
Traders should closely monitor the inflows into Bitcoin ETFs, as a sustained slowdown could negatively impact sentiment and potentially trigger a correction. Let’s analyze the charts to identify important support levels for Bitcoin and altcoins.
Starting with the S&P 500 Index, it has been trading within an ascending channel pattern, but the recent rejection from the channel’s resistance line suggests that bears are defending this level. While the upsloping moving averages favor buyers, the negative divergence on the relative strength index (RSI) warns of a potential correction or consolidation in the near term. If the price falls below the channel, selling pressure could intensify, leading to a decline towards the 50-day simple moving average.
Turning to the U.S. Dollar Index (DXY), it slipped below the 20-day exponential moving average (EMA) on March 1, and subsequent attempts by bulls to push the price above it were unsuccessful. The failure to rise above the 20-day EMA led to accelerated selling on March 6. With the moving averages on the verge of a bearish crossover and the RSI nearing the oversold zone, bears currently have the upper hand. The index could potentially drop to 102 and even further to 101. However, a rise above the 20-day EMA would suggest a reduction in selling pressure and could propel the index towards 105.
Moving on to Bitcoin, the recent surge above $70,000 indicates strong demand from buyers. The rising moving averages and overbought RSI confirm the bullish momentum. The next resistance levels to watch are $76,000 and $80,000. However, a break and close below the 20-day EMA could signal profit booking by bulls and trigger a deeper pullback.
For Ether (ETH), the bears attempted to push the price towards the breakout level of $3,600, but aggressive buying at lower levels prevented a decline. With the price surpassing the psychological level of $4,000, a rally towards $4,372 is possible. If this resistance is breached, the ETH/USDT pair could surge to $4,868. However, the deep overbought territory of the RSI suggests caution, and a drop below the 20-day EMA could initiate a corrective phase.
BNB has been in a strong uptrend, and the momentum increased after the price broke above $460. The next target for bulls is $560, with $617 acting as a potential resistance. The crucial support levels are $460 and the 20-day EMA. A break below the latter could indicate the end of the short-term uptrend.
XRP has shown solid buying at lower levels, as indicated by the long tail on the candlestick at $0.67. If buyers maintain the momentum, they could challenge the resistance at $0.74, potentially starting a new uptrend towards $0.85 and $0.95. On the downside, a turn down from $0.74 would suggest bearish activity, with $0.67 serving as strong support.
Solana (SOL) has encountered resistance from bears attempting to initiate a correction, but the lack of selling pressure has resulted in a shallow pullback. If buyers push the price above $153, the uptrend could resume, targeting $184. However, a break below the breakout level of $126 could open the doors for a drop to the 50-day simple moving average.
Cardano (ADA) saw solid buying at lower levels, with the 20-day EMA and positive RSI indicating an upside bias. The price could potentially reach $0.80 and $0.90, with $1.25 acting as a major resistance. However, a break below $0.68 would invalidate this bullish view and expose the pair to a fall towards the 50-day SMA.
Dogecoin (DOGE) has been battling to stay above the breakout level of $0.16. The rising 20-day EMA and overbought RSI suggest that the bulls have the upper hand. If the price remains above $0.000018, a retest of $0.21 and a rally towards $0.26 are possible. Conversely, a break below $0.16 would indicate bearish activity, with the 20-day EMA serving as a critical level of support.
Shiba Inu (SHIB) has been consolidating within a range between $0.000029 and $0.000039 after a sharp rally. This range-bound action is cooling down the deeply overbought levels on the RSI. If the price breaks below the range, a decline to the 20-day EMA is possible. However, a break above $0.000039 would signal a bullish comeback, with a potential rally towards $0.000046 and $0.000065.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment decisions.