Bitcoin began March on a positive note, but has historically recorded modest gains in the month, an early warning sign for crypto investors.
The S&P 500 Index (SPX) was somewhat positive in February, though it fell 2.61%. On March 1, bitcoin opened positively as the US equity market struggled. This shows that Bitcoin is trying to separate itself from the US equity market.
A positive sign is that retailers seem to have made the most of the crypto bear market. Traders panicked and bought their holdings for less rather than selling them. Data from Glassnode shows that wallets with at least 1 BTC have grown steadily and are approaching the 1 million mark for the first time.
Historically, March has been a mediocre month for Bitcoin. Data from Coinglass shows that bitcoin has closed the month of March with double-digit gains twice in the last 10 years, in 2013 and 2021. It is therefore more likely to continue consolidating in March.
What are the critical steps that could serve as major road blocks for recovery in Bitcoin and altcoins? Let’s study the chart of the top 10 cryptocurrencies to find out.
The $22,800 level has been acting as solid support over the last few days, which is a positive sign. This suggests that sentiment remains bullish and traders are looking at the dip as a buying opportunity.
The bulls have cleared the first hurdle at the 20-day exponential moving average or EMA ($23,435) and will next look to move the price towards significant resistance at $25,250. This is an important level for bears to avoid as breaks and closings above this can attract heavy buying. The pair could then rise to $31,000, as there is no major resistance in between.
Conversely, if the price breaks below $25,250, it suggests the pair could be ranged for a few days. Consolidation near local highs is a sign of bullishness indicating that buyers are not rushing to exit. Bears should take a dip and maintain prices below $22,800. That could start a correction toward $20,000.
Despite repeated attempts, the bear failed to sink the ether
below the 50-day simple moving average or SMA ($1,600). This suggests that the bulls are buying a dip to the 50-day SMA.
Buyers will try to consolidate their positions by pushing prices above the overhead resistance zone between $1,680 and $1,743. If they do, the ETH/USDT pair could start a rally to $2,000. Bears could pose a strong challenge at $1,800, but a break above this level is likely.
The first sign of weakness is a break below the 50-day SMA. If that happens, short-term bulls may be tempted to book profits. The pair could then fall into support near $1,500.
Price action over the past few days has formed a symmetrical triangle pattern on BNB
. . . . It means a resolution between buyer and seller.
The bulls bought a dip to the support line on March 1, but the long candle on the day shows that the bears are fiercely guarding the moving average. If prices break below the triangle, the BNB/USDT pair could fall to $280.
Conversely, if buyers push the price above the moving average, the pair could reach the triangle resistance line. This remains an important level to watch in the near term, as a break above it could lead to a pattern target of $340 and then $371.
Despite repeated attempts, Bear could not pull XRP down
for strong support at $0.36. This indicates that selling pressure is easing.
Bulls will now try to push prices above the resistance line of the descending channel. If that succeeds, the XRP/USDT pair could reach overhead resistance at $0.43. Buyers need to pierce this resistance to clear the way for a potential rally to $0.52.
The Bears probably have some other plan. They then try to stop the recovery at the resistance line of the channel. If the price drops by that, the chances of a break below $0.36 increase. The pair could then slip to $0.33.
Trying to bounce off strong support near $0.34. A recovery may encounter resistance at the 20-day EMA ($0.37) as bears attempt to convert this level into resistance.