Bitcoin’s recent price drop has not affected the demand for spot Bitcoin exchange-traded funds (ETFs). Data from Farside Investors shows that there was a net inflow of $418 million into the ETFs on March 26 and $243 million on March 27. BlackRock CEO Larry Fink expressed his surprise at the performance of the firm’s spot Bitcoin ETF, which he called the “fastest growing ETF in the history of ETFs.” Fink also expressed his bullishness on the long-term viability of Bitcoin.
According to CryptoQuant’s “Weekly Crypto Report,” Bitcoin’s demand has surged from 40,000 Bitcoin at the beginning of 2024 to 213,000 Bitcoin on March 26. This increase in demand could potentially lead to a sell-side liquidity crisis in the coming year.
The question now is whether Bitcoin will continue its recovery and reach a new all-time high before the Bitcoin halving. This could potentially trigger buying in altcoins. Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis:
Bitcoin saw some profit booking on March 26 and 27, but the bulls managed to maintain the price above the pennant pattern. The 20-day exponential moving average (EMA) has started to turn up, and the relative strength index (RSI) is in positive territory, indicating that the path of least resistance is to the upside. If the price breaks above $73,777, we could see a momentum-driven rally to $80,000. On the other hand, if the price drops below the 20-day EMA, it could open the doors for a potential drop to the 50-day simple moving average.
Ether Price Analysis:
Ether is facing selling near $3,678, but the bulls are defending the 20-day EMA. If the price breaks above $3,678, we could see a rally to $4,100, with potential resistance at $4,500 and $4,868. However, if the price turns down sharply and breaks below $3,460, it would suggest that the bears are in control, and the price may drop to the 50-day SMA.
BNB Price Analysis:
BNB’s long wick on March 25 and 26 shows that the bears are defending the 61.8% Fibonacci retracement level of $588. If the price turns down from the current level, it could reach the 20-day EMA at $546. This level is critical, as a rebound from here could lead to another attempt to rise above $600 and reach $645. However, if the price drops below the 20-day EMA, it would signal that the bears are gaining control, and the price could drop to the critical support level at $495.
Solana Price Analysis:
Solana’s recovery is struggling at $196, indicating selling pressure near the overhead resistance of $205. The bears may try to pull the price to the 20-day EMA at $173, which is a crucial level to watch. If the price drops below the 20-day EMA, it would suggest that the bears are in control, and the price could decline further to $162 and the 50-day SMA at $140. On the other hand, if the price turns up from the current level or rebounds off the 20-day EMA, it would indicate strong demand at lower levels and increase the chances of a break above $205.
XRP Price Analysis:
XRP has been trading in a range between the uptrend line and $0.67, indicating indecision among buyers and sellers. If the price remains below the 20-day EMA, we could see a drop to the uptrend line. A strong rebound from this level would suggest that the range-bound action may continue for some time. The next trending move could happen on a break above $0.67 or below the uptrend line. Above $0.67, the price could rally to $0.74. On the downside, a break below the uptrend line could push the price to $0.52.
Cardano Price Analysis:
Cardano’s long wick on March 26 suggests that the bears are trying to keep the price below $0.68. If the price remains below the moving averages, we could see the ADA/USDT pair trading between $0.57 and $0.68 for a while. The flattening 20-day EMA and the RSI near the midpoint indicate a consolidation in the near term. However, if the price breaks above $0.70, it would indicate a bullish comeback, and the pair may attempt a rally to $0.81, where the bears may pose a strong challenge.
Dogecoin Price Analysis:
Dogecoin surged above the $0.19 to $0.21 resistance zone on March 28, indicating aggressive buying by the bulls. The moving averages and the overbought RSI suggest that the bulls are in control. There is a minor resistance at $0.23, but if buyers push through, the price could rally to $0.30 and then to $0.35. However, if bears manage to pull the price back below $0.19, it could trap aggressive bulls and result in a drop to the 20-day EMA.
Avalanche Price Analysis:
Avalanche’s price action has formed a pennant pattern, indicating indecision between the bulls and the bears. The upsloping 20-day EMA and the positive RSI give a slight advantage to buyers. If the support line of the pennant holds, we could see a break and close above the pattern, signaling a possible uptrend resumption. The price could then rise to $65 and later to the pattern target of $76. On the other hand, if the price breaks below the pennant, it would suggest that the bears have taken control, and the price could drop to the 50-day SMA.
Shiba Inu Price Analysis:
Shiba Inu’s recovery broke above the resistance line on March 26, indicating reduced selling pressure. The price is likely to rise to $0.000035, where the bears are expected to defend. A break above this level could lead to a possible rise to $0.000039. However, if the price turns down and breaks below the 20-day EMA, it would suggest that the break above the resistance line may have been a trap. The price could drop to the 50-day SMA.
Toncoin Price Analysis:
Toncoin is correcting in an uptrend, but the pullback is finding support at the 38.2% Fibonacci retracement level. The moving averages suggest an advantage to the bulls, but the developing negative divergence on the RSI indicates a possible consolidation or correction in the short term. If the price breaks below the support level, we could see a drop to the 20-day EMA. On the other hand, if the rebound sustains, the price could rally to the overhead resistance level.
Disclaimer: This article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research before making a decision.