Bitcoin (BTC) had a turbulent week, reaching a new all-time high of $73,777 before quickly giving back its gains and dropping to around $64,500. At the time of publication, Bitcoin is expected to end the week down slightly by about 1% compared to the previous week’s close.
Analysts predict a minor correction, as they believe that lower price levels will attract strong buying from investors in the spot Bitcoin exchange-traded funds. Thomas Fahrer, CEO of crypto-focused reviews portal Apollo, referred to the fall as a “Bear Trap.”
The strength of the rebound will determine whether the correction is over or not. A weak recovery suggests continued selling pressure from the bears, which increases the likelihood of a deeper pullback. Conversely, a strong bounce indicates aggressive buying at lower levels and improves the chances of the uptrend resuming.
Will Bitcoin’s correction lead to a recovery in select altcoins? Let’s examine the top 5 cryptocurrencies that appear strong on the charts.
Bitcoin Price Analysis
Bitcoin experienced a sharp correction from $73,777 on March 14 and broke below the support line of the ascending channel pattern on March 16.
The bulls are attempting to halt the decline at the 20-day exponential moving average ($65,564), but they may face resistance at the channel’s breakdown level. If the price sharply turns down from the current level, the risk of a further fall increases.
If the 20-day EMA is breached, the BTC/USDT pair could drop to $59,000 and then to the 50-day simple moving average ($55,303).
To prevent further downside, bulls must push the price back into the channel, indicating strong buying at lower levels. A break and close above $73,777 would signal the resumption of the uptrend, with the pair potentially rallying to $80,000.
The moving averages have completed a bearish crossover, but the relative strength index (RSI) has risen sharply, suggesting reduced selling pressure. The battle between bulls and bears is likely to intensify at the 20-EMA.
If the price sharply turns down from the 20-EMA, it indicates that bears are selling during rallies. This could lead to a decline to the strong support at $64,500. If this level is breached, the pair may plunge to $59,000.
The first sign of strength would be a break and close above the channel’s support line, potentially propelling the pair to $70,650 and later to $72,420.
Near Protocol Price Analysis
Near Protocol (NEAR) has experienced a pullback within an uptrend, suggesting profit-taking by short-term traders.
A positive sign for the bulls is that the NEAR/USDT pair is finding support near the 50% Fibonacci retracement level of $6.28. If the rebound holds, the pair is likely to retest the overhead resistance at $9.01. A successful breach of this level could lead to a resumption of the uptrend, with the next target on the upside being $10.50.
Conversely, if the price turns down from the overhead resistance, it indicates that traders are selling during rallies. This could result in a decline to the 20-day EMA ($6.18), which is an important support level. A break below it could trigger a deeper correction.
On the 4-hour chart, the bulls are attempting to maintain the price above the moving averages, indicating strong buying at lower levels. If the price stays above the 20-EMA, it suggests that the correction may be over, and the pair could retest $9.01. A break above the resistance level would confirm the continuation of the uptrend.
However, if the price dips below the 20-EMA, it indicates strong selling during rallies. The pair may then drop to the strong support at $6.50.
Aptos Price Analysis
Aptos (APT) experienced a sharp downturn from $15.70 on March 16, but the bears were unable to push the price below the 20-day EMA ($12.90), indicating buying at lower levels.
The rising 20-day EMA ($12.83) and the positive RSI suggest that the bulls have the advantage. If buyers can drive and maintain the price above $15.70, it would signal the start of the next leg of the uptrend. The pair could then rise to $16.75 and eventually to $18.69.
However, if the price turns down and breaks below the 20-day EMA, it indicates that relief rallies are being sold. This could mark the beginning of a corrective phase, potentially taking the pair to the 50-day SMA ($10.73).
On the 4-hour chart, the moving averages have flattened, and the RSI is just above the midpoint, suggesting a possible range-bound action in the short term. The pair may trade between $15.81 and $12 for a while.
A close above the range would indicate that the bulls have absorbed the supply, potentially starting the next leg of the uptrend. Conversely, if the price turns lower and breaks below $12.92, the pair may decline to $12 and then to $11.50.
Render Price Analysis
Render (RNDR) corrected to the 20-day EMA ($10.02), but the bulls successfully defended the support, indicating positive sentiment and buying on dips.
The bulls pushed the price above the $12.78 resistance on March 17, signaling the start of the next leg of the uptrend. If the price remains above $12.78, the RNDR/USDT pair could rise to $16.81.
The first sign of weakness would be a drop below the strong support at $12, which could attract selling and lead to a decline to the 50-day SMA ($7.09).
On the 4-hour chart, the failure of the bears to push and maintain the price below $10 attracted solid buying by the bulls. Momentum increased after the price closed above the overhead resistance at $12. If the price remains above $12, the uptrend is likely to continue.
However, bears may attempt to drag the price below $12 to trap the bulls. If successful, the pair may slide back into the channel, with a potential drop to $10.
Maker Price Analysis
Maker (MKR) resumed its uptrend on March 17 after a period of consolidation, indicating that bulls remain in control.
The MKR/USDT pair could rise to $3,580 and potentially to $4,000, where strong resistance is expected from bears. The uptrend may continue if the bulls do not give up much ground from $4,000.
A slide below $2,976 would be the first sign of weakness, indicating a rejection of higher levels by the market. The pair may then decline to the 20-day EMA ($2,525), an important support level. A break below this could favor the bears.
On the 4-hour chart, the bulls are attempting to sustain the pair above the ascending channel pattern. If successful, the pair could gain momentum and climb toward $3,725.
However, a failure to sustain above the channel would indicate a possible bull trap, with the pair potentially sliding back into the channel. If the price rebounds off the 20-EMA, the bulls may make another attempt to push the pair above the channel. Otherwise, a drop to the support line is likely.
Disclaimer: This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should conduct their own research before making a decision.