Bitcoin (BTC) has started the week positively and is trying to maintain above the $70,000 level. Analysts are hopeful of a reversal this week following five successive days of negative inflows into spot Bitcoin exchange-traded funds (ETFs) last week.
Goldman Sachs said its clients are showing a strong appetite for the firm’s future and options offerings. Max Minton, head of digital assets for Goldman Asia Pacific, said the firm’s larger clients were showing greater interest in the crypto sector following the launch of the spot Bitcoin ETFs.
The demand for spot Bitcoin ETFs is likely to remain strong barring a sharp fall in Bitcoin. That could keep the retracements shallow as market participants will jump in to buy the dips.
What are the key resistance levels to watch out for in Bitcoin and altcoins? Let’s analyze the charts to find out.
The S&P 500 Index continues to rise inside the ascending channel pattern, indicating that the buyers remain in command.
The up move is likely to face selling at the channel’s resistance line. If the price turns down from the resistance line, the index could extend its stay inside the channel. The bullish momentum could pick up on a break above the channel, and the index could soar to 5,450.
Contrary to this assumption, if the price continues lower and breaks below the 20-day exponential moving average (5,147), it will indicate that the bulls are rushing the exit. That may accelerate selling and tug the price down to the 50-day simple moving average (5,018). The negative divergence on the relative strength index (RSI) warns of a possible correction in the near term.
The bears pulled the U. S. dollar Index (DXY) below the 20-day EMA ($103) on March 20 but could not sustain the lower levels.
The index turned up sharply on March 21 and climbed back above the moving averages, indicating aggressive buying at lower levels. The index could rise toward the solid overhead resistance at 105. If the price turns down from this level, the index may remain range-bound between 102.50 and 105 for some more time.
On the contrary, if buyers drive the price above 105, it could start a trending move toward 107. There is a minor resistance at 106, but it is likely to be crossed.
Bitcoin broke out of the pennant formation of the past few days, signaling that the bulls have seized control.
If the bulls maintain the price above $69,000, the BTC/USDT pair is likely to surge to the overhead resistance at $73,777. This level may act as a significant roadblock, but if the bulls prevail, the pair could rally to $80,000.
Contrarily, if the price turns down from the current level, it will suggest that the breakout may have been a bull trap. The bears will try to sink the price below the pennant. If they do that, the pair could tumble to the 50-day SMA ($59,018).
Ether (ETH) has broken out of the 20-day EMA ($3,521) on March 25, indicating that the bulls have asserted their supremacy.
If buyers maintain the price above the 20-day EMA, it will suggest that the corrective phase may be over. The ETH/USDT pair could rise to $3,679 and thereafter rally to the overhead resistance at $4,094.
This positive view will be invalidated in the near term if the price turns down from $3,679 and plunges below the 50-day SMA. That could indicate the start of a deeper correction to $3,056 and then $2,868.
BNB’s (BNB) relief rally has risen above the overhead resistance at $590, an important level to watch out for.
The upsloping moving averages and the RSI in the positive zone suggest that the path of least resistance is to the upside. If buyers sustain the price above $590, the BNB/USDT pair is likely to pick up momentum and jump to $645. This level may pose a strong challenge, but if overcome, the next stop may be $692.
If bears want to prevent the up move, they will have to tug the price below the 20-day EMA ($534). If they do that, the pair may drop to the 50% Fibonacci retracement level of $500.
Solana (SOL) rebounded off the 20-day EMA ($168) on March 24, indicating that the sentiment remains positive and traders are buying on dips.
The bulls will try to push the SOL/USDT pair to the formidable resistance at $205. If the price turns down from $205, the pair may drop to the 20-day EMA and remain between these two levels for a few days.
A break and close above $205 will suggest the start of the next leg of the uptrend. The pair could rise to $243 and eventually to $260. The strong support on the downside is the 20-day EMA, below which the pair could reach the 50-day SMA ($134).
XRP (XRP) has been hovering around the 20-day EMA ($0.62) for the past few days, indicating a tussle between the buyers and sellers.
The flattish 20-day EMA and the RSI near the midpoint do not give a clear advantage either to the bulls or the bears. The XRP/USDT pair could swing between the uptrend line and $0.67 for a while.
If bulls propel the price above $0.67, the pair could rally to the overhead obstacle at $0.74. The bears are expected to fiercely defend this level.
On the downside, a drop below the uptrend will put the bears in the driver’s seat. The pair could then collapse to $0.52.
Dogecoin’s (DOGE) relief rally has reached the stiff resistance at $0.19, where the bears are expected to mount a strong defense.
The 20-day EMA ($0.15) is sloping up, and the RSI is in the positive territory, indicating that the bulls have the upper hand. If buyers do not give up much ground from the current level, the likelihood of a rally above $0.19 increases. The DOGE/USDT pair may jump to $0.23 and subsequently to $0.30.
Alternatively, if the price turns down sharply from the current level, it will suggest that the pair may continue its range-bound action between $0.12 and $0.19.
Cardano’s (ADA) recovery has reached the 20-day EMA ($0.66), a crucial resistance to keep an eye on.
If the price turns down from the overhead resistance, it will suggest that the bears continue to view the relief rallies as a selling opportunity. The ADA/USDT pair could then again drop to $0.57. If this support gives way, the pair will complete a bearish head-and-shoulders pattern.
Conversely, if the price rises above $0.70, it will suggest that the bulls are back in the game. The pair will then attempt to climb to the overhead resistance at $0.81. If this level is scaled, the next stop is likely to be $0.92.
Avalanche (AVAX) has stayed above the breakout level of $50 in the past few days, indicating solid demand from the bulls.
Both moving averages are sloping up, and the RSI is in the positive territory, indicating that bulls are in command. There is a minor hurdle at $58, but if it is crossed, the AVAX/USDT pair could retest the critical resistance at $65. The bears are likely to mount a strong defense at this level, but if overcome, the pair could start the next leg of the uptrend to $87.
If bears want to prevent the upside move, they will have to drag the price back below $50. That may accelerate selling and sink the pair to the 50-day SMA ($44).
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.