Last week, both the S&P 500 Index (SPX) and the Nasdaq Composite reached new all-time highs, indicating a positive sentiment among investors. Bitcoin (BTC) is also striving to keep up with the trend and is currently only $2,000 away from its previous record high of $68,990, set in November 2021.
The current momentum seems to favor buyers, suggesting that Bitcoin’s price may reach a new all-time high in the coming days. However, the question remains whether surpassing $68,990 will mark the beginning of the next leg of the uptrend or if the price will sharply turn downwards, trapping aggressive bulls in a corrective phase.
During a FOMO (fear of missing out) phase, significant returns can be achieved within a short period of time. While the risk is high, traders who can ride this phase are often rewarded. Nevertheless, traders should exercise caution, as vertical rallies are often followed by sharp declines. It is crucial for traders to have their stops in place to protect their gains from evaporating quickly.
The charts need to be analyzed to determine whether the bulls can push Bitcoin to a new all-time high and sustain it, or if it is time to book profits.
S&P 500 Index Price Analysis
On March 1, the S&P 500 Index closed at a new all-time high, confirming that the bulls are firmly in control.
The index has been trading within an ascending channel pattern for several days, suggesting that the bears may pose a strong challenge at the resistance line. If the price turns downwards from the resistance line, the bears will attempt to pull the index towards the support line, potentially starting a short-term corrective phase.
However, if the bulls manage to propel the price above the channel, it would indicate a pickup in momentum. This could trigger a vertical rally, potentially taking the index to 5,300 and then 5,500. Traders need to be cautious, as the negative divergence on the relative strength index (RSI) indicates that the bulls may be losing strength.
U.S. Dollar Index Price Analysis
On February 29, the bulls pushed the U.S. Dollar Index (DXY) above the 20-day exponential moving average (EMA), but their efforts were short-lived as sellers pulled the price back below the 20-day EMA on March 1.
Currently, the 20-day EMA has flattened out, and the RSI is near the midpoint, suggesting possible range-bound action in the near term. If the price remains below the 20-day EMA, the index could decline towards the 50-day simple moving average (SMA), where buyers are expected to defend the level.
Conversely, if the price turns upwards from the current level and rises above 104.30, it would indicate strong buying at lower levels. This could lead to a rise towards 105, potentially opening doors for a further rise to 106.
Bitcoin Price Analysis
Bitcoin has been experiencing a solid uptrend in recent days. Although the bears attempted to halt the upward movement near $64,000, this resulted in the formation of a pennant pattern.
On March 4, the bulls regained control by pushing the price above the pennant, signaling the start of the next leg of the uptrend. This leg could potentially reach the all-time high at $68,990 and continue towards $76,000, which is the pattern target of the breakout from the pennant.
Time is running out for the bears, as they will need to quickly push the price below $60,000 if they want to make a comeback. Such a move would trigger the activation of several stop-loss orders from short-term traders and could cause the BTC/USDT pair to drop towards the 20-day EMA.
Ether Price Analysis
On February 29, Ether witnessed profit booking near $3,600, but the bears failed to initiate a pullback, indicating that every minor dip is being bought by traders.
The bulls are currently attempting to overcome the strong resistance at $3,600. If they succeed, the ETH/USDT pair could start the next leg of the uptrend and surge towards $4,000 and potentially $4,150.
Although the upsloping moving averages suggest that the bulls are in control, the RSI has been in the overbought zone for some time, increasing the possibility of a short-term pullback. The immediate downside support is at $3,300, followed by the 20-day EMA.
BNB Price Analysis
BNB has been in an uptrend for several days. Although the bears tried to stall the rally at $427, the bulls bought the dip on February 29, indicating a positive sentiment.
The rising moving averages and the overbought RSI suggest that the path of least resistance is to the upside. If buyers manage to push the price above $427, the BNB/USDT pair could reach $460. However, breaking above this resistance level may prove challenging for the bulls.
The critical support to watch on the downside is the 20-day EMA. If this support level is breached, it would indicate that short-term traders may be rushing to exit their positions. This could initiate a corrective phase towards the 50-day SMA.
XRP Price Analysis
On March 3, XRP experienced a sharp decline, but the presence of a long tail on the candlestick indicates strong buying at lower levels.
The upsloping 20-day EMA and the overbought RSI suggest that the bulls are in control. Although there is a minor resistance at $0.67, it is likely to be surpassed, potentially leading to a rally towards the powerful resistance at $0.74.
However, if the price sharply turns down from $0.67, it would signal strong defense from the bears at that level. This could result in a pullback towards the 20-day EMA, keeping the XRP/USDT pair within a range of $0.46 to $0.67 for some time.
Solana Price Analysis
On March 1, Solana closed above the $126 resistance level, but the bulls are currently struggling to sustain the momentum. This suggests a lack of demand at higher levels.
Maintaining the price above $126 would increase the likelihood of a resumption of the uptrend. If buyers manage to push the price above $138, the SOL/USDT pair could rise towards $143 and potentially $158.
On the contrary, if the $126 level gives way, the pair may decline towards the 20-day EMA. To indicate that the breakout above $126 was a false move, the bears would need to pull the price below the 20-day EMA, potentially triggering a further drop towards the 50-day SMA.
Cardano Price Analysis
Cardano started the next leg of the uptrend after buyers surpassed the $0.68 barrier on March 1. Although the bears attempted to push the price back below the breakout level on March 3, the bulls showed resilience, indicating strong buying on dips.
The upward movement is likely to reach $0.90, where the bears are expected to put up a strong defense. If the momentum remains strong and buyers manage to surpass $0.90, the rally could extend towards $1.25. However, crossing this level may prove challenging for the bulls.
The RSI is currently above 80, indicating that the rally is at risk of stalling. The 20-day EMA remains a crucial support level to watch on the downside. A break below this level would indicate weakening bullish momentum, potentially leading to a slide towards the 50-day SMA.
Dogecoin Price Analysis
Dogecoin has been on a strong bull run in recent days. Although the bears attempted to push the price lower on March 3, the long tail on the candlestick shows aggressive buying by the bulls.
On March 4, the bulls resumed the uptrend by pushing the DOGE/USDT pair above the $0.16 overhead resistance. This paves the way for a possible rise towards $0.18 and subsequently $0.22. However, the sharp rally has pushed the RSI deep into the overbought territory, suggesting a potential consolidation or correction.
The first support on the downside is at $0.16, followed by $0.12. If these support levels are breached, it would indicate a possible end to the uptrend.
Avalanche Price Analysis
Avalanche completed a bullish inverse head-and-shoulders pattern after the price closed above the neckline at $42 on March 1.
The AVAX/USDT pair is currently facing strong resistance near the $42 level, as both bulls and bears engage in a tough battle. If buyers manage to flip this level into support and push the price above $45, the pair could rally towards the psychological resistance at $50. Overcoming this level could lead to a further rise towards the pattern target of $57.
To weaken the bulls, sellers would need to pull the price below the 20-day EMA. This could result in a decline towards the 50-day SMA, suggesting that the breakout on March 1 may have been a false move.
Disclaimer: This article does not provide investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.