S&P 500

Bitcoin continues to trade near $28,000, signaling a strong demand from investors even as the legacy banking system struggles with unprecedented volatility.

The takeover of the ailing Credit Suisse bank by UBS boosted European equity markets on March 20, but not everyone is happy with the deal. According to the Swiss Financial Market Supervisory Authority, the value of additional tier-one (AT1) bonds will be written to zero, which will wipe out $17 billion worth of investments for AT1 bond investors.

Among the turmoil in the global banking sector, Bitcoin (BTC) has shone brightly, as traders seem to have shifted their focus to the alternative available to the legacy banking system. Another thing working in favor of Bitcoin is that it has decoupled from the United States equities markets and is behaving as an uncorrelated asset class.

Bitcoin’s solid rally in the past few days has boosted trader sentiment. The Crypto Fear and Greed Index has soared into the greed zone with a score of 66/100. The next trigger for the markets will be the rate hike decision by the Federal Reserve on March 22.

Could Bitcoin reach $30,000 and pull altcoins higher, or is a correction likely in the near term? Let’s study the charts to find out.

S&P 500 index price analysis

The S&P 500 index (SPX) rallied from 3,808 on March 13 and rose above the 200-day simple moving average, or SMA (3,935), on March 16, but the bulls could not clear the hurdle at the 20-day exponential moving average, or EMA (3,962).

A positive sign is that the bulls purchased the dip below the 200-day SMA and are again attempting to overcome the obstacle at the 20-day EMA. If they succeed, the index could rally to 4,100 and then to 4,200.

The bears are likely to have other plans. They will try to halt the recovery at the 20-day EMA and sink the price back toward the support zone between 3,800 and 3,764. If this zone gives way, the selling could intensify, and the index may plummet toward 3,600.

U.S. Dollar Index price analysis

The U.S. Dollar Index (DXY) has been trading near the 20-day EMA (104) for the past few days, indicating indecision among the bulls and the bears.

If bears sustain the price below 103.44, the index may slip to the next support at 102.50. Buyers will try to defend this level, but if they fail in their endeavor, the index could tumble to the vital support at 100.82.

Alternatively, if the price turns up and breaks above 105.10, it will clear the path for a possible rally to the 200-day SMA (106). The bulls may encounter strong selling in the resistance zone between the 200-day SMA and the 61.8% Fibonacci retracement level of 108.43.

Bitcoin price analysis

Bitcoin (BTC) has been holding above the breakout level of $25,250 since March 17, which is a positive sign. After a one-day correction on March 18, the price continued its northward march on March 19, indicating that the bulls are in no mood to book profits.

The rising 20-day EMA ($24,463) and the relative strength index, or RSI, near the overbought territory indicate that bulls remain in control. The next major resistance is in the zone between $30,000 to $32,500.

If the price turns down from the current level or the overhead resistance, the key level to watch out for is $25,250. If the price rebounds off this level with strength, it will suggest that bulls have flipped $25,250 into support. The level will thereafter act as a floor during future declines.

Ether price analysis

Buyers pushed Ether (ETH) above the $1,800 resistance on March 18 and 19 but could not sustain the higher levels. This shows that bears are trying to stall the recovery.

A minor positive in favor of the bulls is that they have not allowed the price to slide back below the $1,743–$1,680 support zone. The rising 20-day EMA ($1,654) and the RSI above 61, suggest that the path of least resistance is to the upside.

If buyers propel and sustain the price above $1,850, the ETH/USDT pair may start its journey toward $2,000 and subsequently to $2,200.

This positive view will invalidate in the near term if the price turns down and plummets below the 20-day EMA. That may trap the aggressive bulls, resulting in long liquidations. The pair could then slump to $1,461.

BNB price analysis

BNB (BNB) formed an inside-day candlestick pattern on March 19 and 20, indicating indecision among the bulls and the bears.

The bears are mounting a strong defense above $340, but the bulls have not given up much ground. The upsloping 20-day EMA ($311) and the RSI near the overbought zone give a slight edge to the bulls. If buyers kick the price above $350, the BNB/USDT pair may rally to $400.

On the contrary, if the price breaks below $325, the pair could drop to $318. A strong rebound off this level will suggest that the bulls have flipped the level into support, while a break below $318 may sink the pair to the 200-day SMA ($288).

XRP price analysis

XRP (XRP) reached the 200-day SMA ($0.40) on March 19, but the bulls could not overcome this barrier, as seen from the long wick on the candlestick.

The XRP/USDT pair continues to swing between the 200-day SMA and the horizontal support at $0.36. The flattish 20-day EMA and the RSI near the midpoint do not give a clear advantage either to the bulls or the bears. This indicates that the range-bound trading may continue for a while longer.

On the upside, a break and close above the 200-day SMA will indicate that bulls have overpowered the bears. The pair could first climb to $0.43 and later to $0.51. This positive view will be negated if the price turns lower and plunges below $0.36. The pair could then tumble to the support line of the channel.

Cardano price analysis

The bears are defending the 200-day SMA ($0.36) on Cardano’s ADA (ADA) while the bulls are buying the dips to the 20-day EMA ($0.34).

This tight range may not remain for long. If buyers push the price above the 200-day SMA, the ADA/USDT pair could attempt a rally to the neckline of the developing head-and-shoulders pattern. The bears are expected to defend the neckline with vigor because a break and close above it will signal a potential trend change.

On the contrary, if the price sustains below the 20-day EMA, the pair could drop to the immediate support at $0.31 and next to $0.30.

Related: Paris Blockchain Week 2023: Latest updates by Cointelegraph

Polygon price analysis

Polygon’s MATIC (MATIC) has been trading near the 20-day EMA ($1.16) for the past few days. The 20-day EMA has flattened out and the RSI is just below the midpoint, indicating a balance between supply and demand.

The $1.30 resistance is an important level to watch out for. If buyers clear this hurdle, the MATIC/USDT pair could soar to $1.57. This level may witness a tough battle between the bulls and the bears. If bulls come out on top, the pair may extend its up-move to $1.75.

The crucial level to watch on the downside is the 200-day SMA ($0.96). If the price breaks and sustains below this level, it will suggest that bears have seized control. The pair could then nosedive to $0.69.

Dogecoin price analysis

Dogecoin (DOGE) rose above the 20-day EMA ($0.07) on March 17, but the bulls could not push the price above the 200-day SMA ($0.08). This shows that the bears are unwilling to let go of their advantage.

The flat 20-day EMA and the RSI near the midpoint suggest range-bound action in the near term. The boundaries for the range could be the 200-day SMA on the upside and $0.07 on the downside.

If bulls kick the price above the 200-day SMA, it will suggest that the markets have rejected the lower levels. The DOGE/USDT pair could then rally to $0.09 and thereafter to $0.10. Alternatively, a break below $0.07 could clear the path for a retest of $0.06.

Solana price analysis

Solana’s SOL (SOL) turned down from the 200-day SMA ($22.7) on March 18 but rebounded off the 20-day EMA ($20.98) on March 19. This suggests solid demand at lower levels.

Buyers pushed the price above the 200-day SMA, and the SOL/USDT pair has reached the downtrend line. If bulls push and sustain the price above the downtrend line, it will point to a potential trend change. There is a minor resistance at $27.12, but it is likely to be crossed. The pair may then attempt a rally to $39.

The first support on the downside is the 20-day EMA and then $18.70. If both these levels fail to hold, the pair may retest the vital support at $15.28.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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.

Stock markets continue to trend upward, while crypto investors wait for this week’s Federal Reserve statements before choosing which direction BTC and altcoin prices will take.

The United States equities markets are trying to extend their recovery at the start of the new week. One of the reasons that could be boosting investor confidence is that the yield on the benchmark 10-year note has slipped further to 3.924%.

However, the bullish sentiment of the equities markets has not rubbed off on the cryptocurrency markets which continue to underperform. Bitcoin’s (BTC) tight range trading since March 4 suggests that there is uncertainty about the next directional move.

Generally, periods of low volatility are followed by a pick-up in volatility. The congressional testimony of Federal Reserve Chair Jerome Powell on March 7 and March 8 will be watched for the outlook on inflation and rate hikes. Later, on March 10, the release of February’s job report could add to the volatility.

Could the strength in the U.S. equities markets and the weakness in the U.S. dollar index(DXY) attract buying in the beaten-down cryptocurrency sector? Let’s study the charts to find out.

SPX

The S&P 500 index (SPX) turned up sharply from 3,928 on March 2, indicating that buyers have not given up and are accumulating at lower levels.

Buyers pushed the price above the 20-day exponential moving average (4,030) on March 3 and followed it up with another move higher on March 6. The rise back above the uptrend line could have trapped the aggressive bears who may be rushing to the exit. The index will try to rise to 4,200 and then to 4,300.

On the contrary, if the price turns down from the current level or the overhead resistance and breaks below the moving averages, it will suggest that bears are back in the game. A break and close below 3,928 could open the gates for a possible drop to 3,764.

DXY

The recovery in the U.S. dollar index (DXY) is facing selling near the 38.2% Fibonacci retracement level of 105.52 but a minor positive in favor of the buyers is that they have not allowed the price to slip below the 20-day EMA (104.10).

If the price bounces off the 20-day EMA, the bulls will again try to drive the index above the overhead resistance. If they succeed, the index could rally to the 50% retracement level of 106.98 and then to the 61.8% retracement level of 108.43.

Instead, if the price turns down and breaks below the 20-day EMA, the next stop may be the 50-day SMA (103.36). Such a move will suggest that the index may consolidate between 101.29 and 105.52 for some time.

BTC/USDT

Bitcoin is struggling to climb back above $22,800, indicating that the bears are trying to flip the level into resistance. The moving averages are about to complete a bearish crossover and the relative strength index (RSI) is in the negative zone, signaling advantage to the bears.

If the price turns down from the current level, the BTC/USDT pair may drop to the critical support at $21,480. This level may witness a tough battle between the bulls and the bears. If the bears come out on top, the pair may extend its decline to the psychologically important level of $20,000.

On the other hand, if the price rebounds off $21,480, the bulls will make one more attempt to clear the overhead hurdle at $22,800. If they manage to do that, the pair may start its up-move toward $25,250.

ETH/USDT

Ether (ETH) has been trading in a tight range following the sharp fall on March 3. This indicates indecision among the buyers and sellers.

If bears sink the price below $1,544, the advantage could tilt in their favor and the ETH/USDT pair may slump toward the strong support at $1,461. This level is again likely to behave as a strong support. If the price springs back from this level, the pair may remain stuck between $1,461 and $1,743 for a while longer.

On the upside, the bulls will have to push and sustain the price above the moving averages to signal a comeback. The pair may then attempt to climb above the $1,680 to $1,743 resistance zone. If that happens, the pair may start its journey toward $2,000.

BNB/USDT

BNB’s (BNB) shallow pullback from the current level shows a lack of aggressive buying by the bulls. The downsloping 20-day EMA ($301) and the RSI in the negative territory indicate that the path of least resistance is to the downside.

If bears sink the price below $280, the BNB/USDT pair will complete a bearish head and shoulders (H&S) pattern. That could start a downward move toward the first target at $245 and thereafter $222.

If bulls want to prevent the downturn, they will have to fiercely defend the $280 support and quickly push the price above the 20-day EMA. That could increase the possibility of a rise to the overhead resistance at $318.

XRP/USDT

XRP’s (XRP) rebound off the $0.36 support on March 3 met with strong selling near the 20-day EMA ($0.38). This suggests that the sentiment is negative and traders are selling on rallies.

If the price tumbles below $0.36, the XRP/USDT pair could reach the support line of the descending channel pattern. Buyers may buy this dip to keep the pair inside the channel but could find it difficult to overcome the obstacle at $0.36.

The first sign of strength will be a break and close above the resistance line of the channel. That could attract further buying and the pair may attempt a rally to $0.43 where they are likely to encounter stiff resistance from the bears.

ADA/USDT

Cardano (ADA) bounced off the $0.32 support on March 3 but the bulls could not propel the price above the overhead resistance at $0.34. This shows that the rallies are being sold into.

The bears will again try to sink the price below the $0.32 support. If they can pull it off, the ADA/USDT pair could witness aggressive selling. There is no major support until the pair reaches $0.26.

This negative view could invalidate in the near term if the price rebounds off $0.32 and breaks above the moving averages. That could increase the possibility of the formation of the right shoulder of the inverse H&S pattern.

Related: Bitcoin traders eye $19K BTC price bottom, warn of ‘hot’ February CPI

MATIC/USDT

Polygon (MATIC) formed an inside-day candlestick pattern on March 5, indicating indecision among the bulls and the bears.

The downsloping 20-day EMA ($1.23) and the RSI below 41 suggest advantage to the bears. The MATIC/USDT pair could drop to the solid support at $1.05. Buyers are expected to defend this level aggressively because a break and close below it may sink the pair to $0.90 and thereafter to $0.69.

Alternatively, if the price turns up from the current level or rebounds off $1.05 with strength, it will indicate demand at lower levels. That may start a relief rally to the 20-day EMA where the bears may again mount a strong defense.

DOGE/USDT

Dogecoin (DOGE) attempted a recovery on March 5 but the long wick on the day’s candlestick indicates selling on rallies.

The downsloping 20-day EMA ($0.08) and the RSI near the oversold zone show that bears are in command. The sellers will try to strengthen their position further by yanking the price below the crucial support near $0.07. If this level breaks down, the pair could reach the pattern target of $0.06.

On the way up, the first resistance to watch out for is $0.08. If this level is scaled, the DOGE/USDT pair may start a recovery toward $0.10.

SOL/USDT

The bulls tried to start a recovery in Solana (SOL) on March 5 but the long wick on the day’s candlestick shows selling near the 20-day EMA ($22.32).

The bears will try to pull the price below the strong support near $19.68. If they succeed, the selling may intensify and the SOL/USDT pair could plummet toward the strong support near $15.

On the contrary, if the price rebounds off $19.68, it will suggest accumulation on dips. The bulls will then again try to push the price above the moving averages. If that happens, the pair could rise to the resistance line.

The zone between the resistance line and $27.12 remains the key area to watch out for because a break above it could catapult the pair toward $39.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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.

Bitcoin and U.S. equities markets are attempting to recover, but selling at overhead resistance could continue to weigh on the bullish momentum.

Bitcoin (BTC) and the United States equities markets are trying to start the week on a positive note, but some analysts are skeptical about the short-term prospects of the markets. According to Bloomberg Intelligence senior macro strategist Mike McGlone, Bitcoin will face significant resistance at $25,000. McGlone believes that it “may be a while before buy-and-hold types gain the upper hand.”

It also looks like Bitcoin whales, unique entities owning 1,000 BTC or more, are also not convinced of the recovery in the crypto markets. According to Glassnode, Bitcoin whale numbers have fallen to 1,663, which is well below the peak of 2,161 in February 2021.

It is difficult to catch the bottom in any market. Hence, traders should try to build a portfolio when they believe that the downtrend has ended and a basing pattern has begun.

Instead of buying the entire quantity at one go, they could gradually build a portfolio and aim to finish the purchases before the asset picks up momentum and shoots higher.

Could the strength in the equities markets pull Bitcoin and altcoins higher? Let’s study the charts to find out.

SPX

The S&P 500 (SPX) index plunged below the 20-day exponential moving average, or EMA (4,046), on Feb. 17, which intensified selling and pulled the price to the uptrend line. Although the bears pulled the price below the uptrend line on Feb. 24, the lower levels attracted buying as seen from the long tail on the day’s candlestick. That helped the index close near the uptrend line.

The bulls may face an uphill task, as the bears are likely to sell on any relief rallies near the 20-day EMA, as seen from the long wick on the Feb. 27 candlestick. If the price turns down from the 20-day EMA, it will suggest that the sentiment is negative and traders are selling on minor rallies. A close below the uptrend line may open the doors for a possible drop to 3,764.

If bulls want to salvage the situation, they will have to push the price back above the 20-day EMA. If they do that, it will indicate that the break below the uptrend line may have been a bear trap. The index could then attempt a rally to the overhead resistance of 4,200.

DXY

The bulls successfully defended the retest of the breakout level from the wedge pattern on Feb. 20, which started a stronger relief rally in the U.S. Dollar Index (DXY).

The index has reached the 38.2% Fibonacci retracement level of 105.52. This level may see an attempt by the bears to stall the recovery. If sellers want to maintain their hold, they will have to sink the price below the moving averages.

On the other hand, if bulls want to strengthen their position, they will have to push the price above 105.52. If they manage to do that, the index could extend its recovery to the 50% retracement level of 106.98 and then to the 61.8% retracement level of 108.43.

BTC/USDT

Bitcoin (BTC) rebounded off the $22,800 support on Feb. 25 and rose above the 20-day EMA ($23,417) on Feb. 26. This suggests that lower levels are attracting buyers.

However, the bears may not give up easily. They will try to pull the price back below the 20-day EMA and challenge the 50-day simple moving average, or SMA ($22,433). If this level gives way, the BTC/USDT pair may plummet to the next major support at $21,480.

Alternatively, if the price once again bounces off $22,800, it will signal that buyers are fiercely defending this level. That may indicate a range-bound action between $22,800 and $25,250 for a few days.

ETH/USDT

Ether (ETH) rebounded off the 50-day SMA ($1,587) on Feb. 25, indicating that the bulls are fiercely defending this level. The 20-day EMA ($1,626) has flattened out, and the RSI is just above the midpoint, indicating a balance between supply and demand.

This balance will tilt in favor of the bulls if they thrust and close the price above $1,680. The ETH/USDT pair will then attempt to rise above the $1,800 resistance and start its journey toward the psychological level of $2,000.

Alternatively, if the price once again turns down from the overhead resistance, it will indicate that bears are not willing to give up. That may increase the possibility of a break below the 50-day SMA. The pair could then drop to $1,460 and later to $1,352.

BNB/USDT

BNB (BNB) broke and closed below the 50-day SMA ($307) on Feb. 24, but the bulls purchased the dip and pushed the price to the 20-day EMA ($309) on Feb. 26. This level is attracting selling by the bears.

If the price turns down and breaks below $295, it will indicate that sellers have flipped the 20-day EMA into resistance. The BNB/USDT pair could then tumble toward the critical support at $280. This is an important level to watch out for because a bounce off it may point to a range formation between $280 and $318 for some time.

The next trending move in the short term could begin if buyers drive the price above $318 or bears sink the price below $280.

XRP/USDT

XRP’s (XRP) price has been swinging inside a large range between $0.30 and $0.43 for the past several weeks. The price broke below the 50-day SMA ($0.39) on Feb. 23 and has been gradually falling toward the solid support at $0.36.

The 20-day EMA ($0.38) has started to turn down, and the RSI is in the negative territory, indicating that bears have a slight edge in the near term. If the price breaks below $0.36, the XRP/USDT pair may slide to the support line of the descending channel.

This negative view could invalidate in the near term if the price turns up and rises above the channel. The pair could then attempt a rally to the overhead resistance at $0.42 where the bears are expected to mount a strong defense.

ADA/USDT

Cardano’s ADA (ADA) bounced off $0.35 on Feb. 25, but the recovery is facing selling at the 50-day SMA ($0.37). This indicates that the bears are trying to flip the level into resistance.

The moving averages are on the verge of a bearish crossover, with the 20-day EMA ($0.38) dropping below the 50-day SMA. Such a move will suggest that the bears have the edge in the near term. A break and close below the strong support zone between $0.34 and $0.32 could start a decline to $0.26.

If bulls want to prevent the downtrend, they will have to propel the price back above the 20-day EMA. The ADA/USDT pair may then climb to the $0.42–$0.44 resistance zone.

Related: Bitcoin price eyes $24K retest as US dollar dives into monthly close

MATIC/USDT

Polygon’s MATIC (MATIC) plunged below the 20-day EMA ($1.30) on Feb. 24, and the bears successfully held its retest on Feb. 26. This indicates that the 20-day EMA is acting as the new roof.

The bears will next attempt to sink the price below the 50-day SMA ($1.16). If they succeed in this endeavor, the selling could intensify, and the MATIC/USDT pair may tumble to the next strong support at $1.05.

If buyers want to regain the upper hand, they will have to thrust the price above the 20-day EMA. That will indicate solid buying on dips. The pair may first climb to $1.42 and thereafter rally to the $1.50 to $1.57 resistance zone.

DOGE/USDT

Dogecoin (DOGE) bounced off the strong support near $0.08 on Feb. 25, but the recovery is facing selling pressure from the bears on Feb. 27.

The moving averages have completed a bearish crossover, and the RSI is in the negative territory, indicating that bears have the upper hand. A break and close below the $0.08 support will complete a head-and-shoulders pattern in the near term. The DOGE/USDT pair could then plummet to $0.07.

Contrary to this assumption, if the price turns up from the current level or $0.08, it will indicate that lower levels are being viewed as a buying opportunity. The relief rally may face selling near the downtrend line, but if bulls overcome this barrier, the pair could attempt a rally to $0.10.

SOL/USDT

Solana’s SOL (SOL) is witnessing a tough battle between the bulls and the bears near the 50-day SMA ($22.75). This indicates that bulls are attempting to protect the level, while the bears are trying to break it and come out on top.

If the price slips below $21.41, the SOL/USDT pair could drop to the important support at $19.68. This is an important level for the bulls to defend because a close below it may increase the selling pressure and sink the pair to $15.

Conversely, if the price turns up and rises above the 20-day EMA ($23.23), the bulls will push the pair to the resistance line. The bears are likely to defend this level with all their might, but if buyers overcome this obstacle, an up-move to $39 is possible.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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.

Bitcoin’s tight consolidation near $25,000 suggests that bulls are holding on to their positions in anticipation of a breakout to a new 2023 high.

Bitcoin (BTC) rose more than 11% last week and is trading near the pivotal resistance at $25,000. Monitoring resource Material Indicators highlighted in its latest update that large-volume traders were “thinning” overhead resistance, which could spark a rally. As prices rise, retail traders may get sucked in, and whales could use this opportunity to sell their positions that were accumulated at lower levels.

Every uptrend witnesses several pullbacks, and Bitcoin is no exception. However, the price action of the past several months shows a large basing pattern, which may be about to break out to the upside. If that happens, Bitcoin will signal a potential trend change.

There are very few occasions when all indicators turn bullish. If traders keep waiting for that to happen, they may miss a large portion of the rally. Therefore, it is better to watch the price action closely and trade according to one’s money management principles. Usually, successful strategies are simple and easy to follow.

Could Bitcoin and select altcoins continue to outperform the United States equities markets in the near term? Let’s study the charts to find out.

SPX

The S&P 500 (SPX) index bounced off the 20-day exponential moving average (EMA) at 4,080 on Feb. 10, but the bulls could not push the price to the overhead resistance at 4,200. This emboldened the bears, who pulled the price below the 20-day EMA on Feb. 17. A minor positive for the bulls is that lower levels attracted strong buying, as seen from the long tail on the day’s candlestick.

The 20-day EMA is flattening out, and the relative strength index (RSI) is near the midpoint, suggesting a few days of consolidation. The index could swing between the uptrend line and 4,200 for some time.

Trading inside a range is generally volatile and random. If bulls thrust the price above 4,200, the index could resume its up-move. There is resistance at 4,300, but if bulls do not allow the price to dip back below 4,200 during the next correction, the index may rally to 4,500.

Contrary to this assumption, if the price turns down and plummets below the uptrend line, the index may tumble to 3,764.

DXY

The U.S. Dollar Index (DXY) broke and closed above the wedge pattern on Feb. 16. The moving averages are about to complete a bullish crossover, and the RSI is near 57, indicating that bulls are trying to make a comeback.

However, the bears are unlikely to give up easily. They will try to pull the price back below the moving averages and trap the aggressive bulls. If they do that, the index could first slip to 102.58 and thereafter to 101.29.

Conversely, if bulls do not allow the price to break below the moving averages, it will suggest that dips are being purchased. The index may then start a relief rally to the 38.2% Fibonacci retracement level of 105.52 and thereafter to the 50% retracement level of 106.98.

BTC/USDT

Bitcoin (BTC) has been trading near the strong overhead resistance at $25,211 for the past four days. Although the bears have defended the level successfully, the bulls have not given up. They again jumped on the opportunity on Feb. 20 and purchased at lower levels.

Generally, a consolidation near a strong overhead resistance breaks out to the upside. The rising moving averages and the RSI above 65 also indicate that bulls are in control. If the price breaks and sustains above $25,250, the BTC/USDT pair could pick up momentum. There is no major resistance until $31,000; hence, this journey could be covered in a short time.

The first support is at the 20-day EMA ($23,218) and then at $22,800. Sellers will have to quickly drag the price below this support to weaken the bullish momentum. The pair could then tumble to $21,480.

ETH/USDT

Buyers pushed Ether (ETH) above the overhead resistance of $1,680 on Feb. 17 and thwarted attempts by the bears to pull the price back below the breakout level.

The upsloping moving averages and the RSI in the positive zone indicate that the path of least resistance is to the upside. The ETH/USDT pair could first rise to $1,800 and then continue its journey toward the next resistance at $2,000. Sellers are expected to fiercely defend the zone between $2,000 and $2,200.

This bullish view could invalidate in the near term if the price turns down from the current level and breaks below $1.460. The pair may then slump to the strong support at $1,352.

BNB/USDT

Sellers are trying to defend the $318 resistance, but the bulls have not allowed BNB’s (BNB) price to sustain below the moving averages. This suggests that lower levels are attracting buyers.

The price has been clinging to the $318 resistance for the past two days, increasing the possibility of a break above it.

If that happens, the BNB/USDT pair could rally to the neckline of the inverse head-and-shoulders (H&S) pattern where the bears may again erect a strong barrier. If buyers bulldoze their way through, the pair could jump up to $360 and thereafter continue its journey to $400.

The bears will have to sink and sustain the price below the 50-day SMA ($300) to keep their chances alive for starting a deep correction.

XRP/USDT

XRP’s (XRP) price has been falling in a descending channel pattern. The 20-day EMA ($0.39) is flattish, but the RSI has risen above 54, indicating that bulls are trying to start a recovery.

If the price ascends and sustains above the resistance line of the channel, the XRP/USDT pair may start a rally to the crucial overhead level of $0.43. A break and close above this level could open the gates for a possible spurt to $0.51.

Contrarily, if the price turns down from the current level and sustains below the moving averages, it will suggest that bears are not willing to give up without a fight. The pair could first slide to $0.36 and then to the support line of the channel.

ADA/USDT

Cardano’s ADA (ADA) is getting squeezed between the neckline and the 20-day EMA ($0.38). This tight range trading suggests that bulls are buying the dips to the 20-day EMA as they anticipate a move higher.

The upsloping moving averages and the RSI in the positive territory indicate that bulls have the upper hand. A break and close above $0.42 will complete a bullish inverse H&S pattern. This setup could attract further buying and push the price toward $0.50. The target objective of this reversal pattern is $0.60.

Alternatively, if the price turns down and breaks below the 20-day EMA, it will give an opportunity to the bears to make a comeback. The pair could then slide to the strong support at $0.34.

Related: Ethereum’s deflation accelerates as Shanghai upgrade looms — Can ETH price avoid a 30% drop?

MATIC/USDT

Polygon’s MATIC (MATIC) is in a strong uptrend. The bears tried to stall the up-move near $1.57, but the shallow pullback suggests that bulls are not rushing to the exit.

If the price turns up from the current level and rises above $1.57, the uptrend may resume. The MATIC/USDT pair could then rally to $1.70. This level is likely to act as a major obstacle, but if bulls kick the price above it, the pair could continue its northward march and reach $2.10.

The first major support on the downside is the 20-day EMA. Sellers will have to tug the price below this support to slow down the bullish momentum. The pair could then start a deeper correction to $1.13.

DOGE/USDT

The bulls and the bears are witnessing a tough battle near the moving averages. A minor positive is that buyers have not allowed Dogecoin (DOGE) to sustain below the 50-day SMA ($0.08), indicating demand at lower levels.

The 20-day EMA ($0.09) has started to turn up gradually, and the RSI is just above the midpoint, signaling that bulls have a slight edge. If buyers drive and sustain the price above $0.09, the DOGE/USDT pair could rally to $0.10 and thereafter to $0.11. This level may act as a significant resistance, but if crossed, the next stop could be $0.15.

On the downside, the $0.08 level is acting as a strong support. Any breach of this level could result in a retest of the crucial support at $0.07.

SOL/USDT

The resistance line in Solana’s SOL (SOL) acted as a major obstacle on three previous occasions; hence, a break and close above it will be the first indication that the downtrend could be ending.

If the price sustains above the resistance line, the SOL/USDT pair could rally to $39 where the bears may again mount a strong defense. If bulls flip the resistance line into support during the next pullback, the likelihood of the pair hitting $50 increases.

Time is running out for the bears. If they want to regain the advantage, they will have to quickly stall the up-move and yank the price back below the support at $19.50. If they do that, the pair may plummet to $15.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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.

Bitcoin and major altcoins look vulnerable to a deeper correction after the crackdown on Paxos soured sentiment across the crypto market.

Bitcoin (BTC) and select altcoins are threatening to deepen their correction after reports emerged that the United States Securities and Exchange Commission (SEC) issued a Wells Notice to Paxos, alleging that the dollar-pegged Binance USD (BUSD) stablecoin is an unregistered security. Separately, Paxos has been ordered by the New York Department of Financial Services (NYDFS) to halt the issuance of BUSD. 

After the crackdown on Kraken last week and now Paxos, the regulator’s actions may increase nervousness among crypto investors. FOX Business journalist Eleanor Terrett tweeted on Feb. 12 that “more Wells notices going out in the coming 2-3 weeks, I’m told.”

Volatility may remain high in the near term as market observers await the consumer price index data to be released on Feb. 14. Interestingly, Bitcoin has made a golden cross on the daily chart and a death cross on the weekly time frame.

This suggests that the medium-term trend remains negative but the short-term trend could be signaling a turnaround. Let’s study the charts to find out the critical support and resistance levels to watch out for.

SPX

The S&P 500 index (SPX) turned down from 4,200 on Feb. 2 and reached the 20-day exponential moving average (4,057) on Feb. 10. This is an important level for the bulls to defend if they want to keep the recovery intact.

The 20-day EMA is sloping up gradually and the relative strength index (RSI) is in the positive territory, indicating a minor advantage to buyers. The bulls will try to push the price to the overhead resistance at 4,200.

This is an important level to keep an eye on because if bulls pierce this resistance, the index may rally to 4,300 and thereafter to 4,500.

If bears want to have the upper hand, they will have to pull the index below the 20-day EMA. That could sink the index to the uptrend line.

DXY

The U.S. Dollar Index (DXY) turned down from the resistance line on Feb. 7 but the bears could not sink the price below the 20-day EMA (103). This suggests a change in sentiment from selling on rallies to buying on dips.

The 20-day EMA has turned up and the RSI has risen into the positive territory, suggesting that bulls are making a comeback. If the price breaks and sustains above the resistance line, the short-term trend may turn positive. The index could then start its northward march to 106 and later to 108.

Instead, if the price turns down from the current level and breaks below the 20-day EMA, it will suggest that the index may extend its stay inside the wedge pattern for a few more days.

BTC/USDT

Bitcoin’s attempt to recover fizzled out at $22,090 on Feb. 12, indicating that bears are selling on every minor rise and not waiting for the price to reach the 20-day EMA ($22,241).

This increases the possibility of a break below $21,480. The downsloping 20-day EMA and the RSI in the negative zone indicate that the path of least resistance is to the downside. The next support is the 50-day simple moving average ($20,439).

If the price rebounds off this support, the bulls will attempt to drive the BTC/USDT pair above $21,480 and attack the 20-day EMA. Buyers will have to clear this hurdle to seize control and open the doors for a possible rally to $23,500.

ETH/USDT

Ether (ETH) is struggling to find its footing at the $1,500 support. The 20-day EMA ($1,567) has turned down and the RSI is in the negative territory, indicating that bears have the upper hand.

If the 50-day SMA ($1,483) fails to arrest the decline, the selling could accelerate and the ETH/USDT pair may fall to the solid support at $1,352. This level may attract aggressive buying by the bulls. If the price rebounds off it, the pair may oscillate between $1,352 and $1,680 for some time.

Another possibility is that the price turns up from the 50-day SMA and breaks above the 20-day EMA. The pair could then rally to $1,680, which remains the key level for the bulls to surmount.

BNB/USDT

BNB (BNB) faced rejection at $318 on Feb. 12, suggesting that bears are selling on rallies. The bears will try to strengthen their position further by dragging the price below the strong support at $280.

The 20-day EMA ($310) has started to turn down and the RSI is in the negative territory, indicating that bears are at an advantage. If the $280 level collapses, the BNB/USDT pair may witness aggressive selling. The next support is $250.

Conversely, if the price jumps up from $280, the bulls will again try to push the pair above $318. If they succeed, the pair could rise to the neckline of the developing inverse head and shoulders pattern.

XRP/USDT

The bulls failed to protect the 50-day SMA ($0.38), indicating a lack of demand at lower levels. XRP’s (XRP) next support is at $0.36.

The 20-day EMA ($0.39) has started to turn down and the RSI has slipped into the negative territory, indicating that bears have the edge.

Even if the price rebounds off $0.36, the bears will try to sell on rallies to the 20-day EMA. If the price turns down from this level, it will increase the likelihood of a break below $0.36. The XRP/USDT pair could then plunge to $0.33.

Alternatively, if the price turns up and rises above the 20-day EMA, the pair may remain stuck between $0.36 and $0.43 for a while longer.

DOGE/USDT

Dogecoin (DOGE) is witnessing a tough battle between the bulls and the bears near the moving averages. A minor positive is that the bulls have not allowed the price to sustain below the 50-day SMA ($0.08).

If buyers propel the price above the 20-day EMA, the DOGE/USDT pair could rise to the psychological resistance at $0.10. The bears are expected to protect the zone between $0.10 and $0.11 with vigor because if it is scaled, the pair could pick up momentum and skyrocket to $0.15.

Conversely, if the price sustains below the 50-day SMA, the bears will attempt to sink the pair to the critical support at $0.07. This level is likely to attract aggressive buying by the bulls.

Related: Bitcoin flirts with bid liquidity as BTC price nears new 3-week lows

ADA/USDT

The bulls tried to push Cardano (ADA) back above the 20-day EMA ($0.37) on Feb. 12 but the bears did not budge. This shows that the sellers are trying to gain the upper hand.

The bears yanked the price below the immediate support at $0.35, which paves the way for a potential drop to the 50-day SMA ($0.34) and then to the crucial support at $0.32. A break below this level will suggest that bears are back in the driver’s seat.

If bulls want to prevent a deep correction, they will have to quickly kick the price above the $0.38 resistance. If the price sustains above this level, the ADA/USDT pair could climb to $0.41 and thereafter to $0.44. This level is likely to pose a strong challenge for the bulls.

MATIC/USDT

Buyers tried to propel Polygon (MATIC) above the $1.30 overhead resistance on Feb. 12 but the bears held their ground. This may have tempted short-term traders to book profits, which dragged the price below the 20-day EMA ($1.17).

If the bears sustain the price below the 20-day EMA, the MATIC/USDT pair could plummet to the 50-day SMA ($1.05). The zone between $1.05 and $1 is likely to attract buyers.

Usually, after such a deep correction, the next leg of the uptrend may not start at once. The price could oscillate between $1.30 and $1.05 for a few days before starting the next trending move.

Another possibility is that the price turns up from the current level and rises to the overhead resistance at $1.35.

SOL/USDT

Solana (SOL) plunged below the 20-day EMA ($22.19) on Feb. 9 but the bears failed to pull the price below the 50-day SMA ($19.42) on Feb. 10. This shows that lower levels are attracting buyers.

The price turned down from the 20-day EMA on Feb. 13, indicating that bears are trying to establish their supremacy. If the price slides below the 50-day SMA, the selling could pick up and the SOL/USDT pair may collapse to $15.

Contrarily, if bulls drive the price above the 20-day EMA, the pair could rise to the overhead resistance at $28. This is an important level to keep an eye on because a break above it will signal a potential trend change.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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.

The U.S. dollar’s rise has put brakes on Bitcoin’s price recovery, but lower levels are likely to attract buyers for BTC and altcoins such as Dogecoin.

The United States Dollar Index (DXY) has started a strong recovery and its rise is putting pressure on Bitcoin (BTC) and the S&P 500 (SPX) index. Market participants will be keenly watching for any insights on future rate hikes when Federal Reserve Chairman Jerome Powell speaks before the Economic Club of Washington on Feb. 7.

Meanwhile, Bitcoin’s 43% rebound in January has improved sentiment among small investors. Crypto analytics firm Santiment said that the number of Bitcoin addresses holding 0.1 Bitcoin or less soared by 620,000 to hit 39.8 million, the highest level since Nov. 19.

With the sentiment turning positive, traders usually buy the dips as they anticipate the uptrend to continue. However, some analysts believe that the dip buyers will get trapped and Bitcoin may fall to the $19,000 to $21,000 support zone or worse, with a capitulation in the next few weeks.

Could the S&P 500 and the cryptocurrency markets witness profit booking in the short term? What are the critical support levels to watch out for? Let’s study the charts to find out.

SPX

The S&P 500 index soared above the 4,101 resistance on Feb. 1 but the bears are unlikely to give up without a fight. They will try to pull the price back above 4,101 and trap the aggressive bulls.

The onus is upon the bulls to try and protect the zone between 4,101 and the 20-day exponential moving average (4,033). If the price rebounds off this zone, the likelihood of a break above 4,200 increases. That could clear the path for a possible rally to 4,300 where the bears may again erect a strong barrier.

On the downside, the 20-day EMA is the crucial support to keep an eye on. A break and close below it will suggest that the bulls may be losing their grip, putting the index in danger of dropping to the uptrend line.

DXY

The U.S. Dollar Index made a strong comeback on Feb. 2, indicating aggressive buying at lower levels. Buyers maintained their momentum and pushed the price above the 20-day EMA (102) on Feb. 3.

The index could rally to the resistance line of the descending broadening wedge pattern where the bears will try to halt the recovery. This is an important level for the sellers to defend if they want to maintain the upper hand.

Alternatively, the bulls will have to push and sustain the price above the wedge to start a meaningful recovery to 108. The 20-day EMA is flattening out and the relative strength index (RSI) has jumped into the positive territory, indicating that the selling pressure may be reducing.

BTC/USDT

Bitcoin has pulled back to the crucial support zone between $22,800 and the 20-day EMA ($22,489). This is an important zone for the bulls to protect if they want to keep the uptrend intact.

If the price rebounds from here, the bulls will try to push the BTC/USDT pair above $24,255 and challenge the overhead resistance at $25,000. The bears are expected to guard this level with all their might because a break and close above $25,000 could signal that the bear market is over for good.

On the contrary, a deeper pullback comes into play if the price turns down and breaks below the 20-day EMA. The important levels to watch on the downside are $21,480 and the 50-day simple moving average ($19,697).

ETH/USDT

Ether (ETH) remains sandwiched between the 20-day EMA ($1,591) and the overhead resistance at $1,680. This tight-range trading is unlikely to continue for long and a breakout may happen soon.

If the price plummets below the 20-day EMA, the ETH/USDT pair could continue lower and reach $1,500. This level may attract buyers and a bounce off it will keep the pair inside the $1,500 to $1,680 range for a few days.

The bears must then sink the price below $1,500 to gain the upper hand. The pair could then start a deeper correction to $1,352. On the other hand, buyers will have to propel the pair above $1,680 to start a rally to $1,800, and thereafter to $2,000.

BNB/USDT

Buyers pushed BNB’s (BNB) price above the $335.50 resistance on Feb. 5. But the long wick on the candlestick shows that bears are selling at higher levels. The price pulled back to the breakout level of $318 where the bulls are buying aggressively as seen from the long tail on the Feb. 6 candlestick.

The bears will have to sink the price below the 20-day EMA ($312) to clear the path for a decline to the 50-day SMA ($281).

Conversely, if the price turns up from the current level and breaks above $338, it will suggest that the bulls have flipped the $318 level into support. The BNB/USDT pair will then likely resume the rally and reach $360. This level should provide solid resistance but if the bulls clear it, the next big hurdle will be $400.

XRP/USDT

The failure of the bulls to drive XRP’s (XRP) price above $0.42 on Feb. 4 shows that bears are fiercely guarding this level. The emboldened bears pulled the price below the 20-day EMA ($0.40) on Feb. 5.

The price action of the past few days has flattened the 20-day EMA and the RSI has also slipped near the midpoint, indicating a balance between supply and demand. That could keep the pair range-bound between $0.37 and $0.42 for some time.

If bulls want to establish their dominance, they will have to thrust the price above the $0.42 to $0.44 resistance zone. If they do that, the XRP/USDT pair has a chance of reaching $0.51. Contrarily, if bears sink the price below $0.37, the selling could intensify and the pair risks dropping toward $0.32.

DOGE/USDT

The bulls again tried to clear the overhead hurdle at $0.10 on Feb. 4 but the bears held their ground. This pulled Dogecoin (DOGE) back to the 20-day EMA ($0.09) on Feb. 5.

The DOGE/USDT pair is stuck between the 20-day EMA and $0.10 for the past few days. Usually, tight ranges resolve with a sharp range breakout but it is difficult to predict the direction with certainty.

As the 20-day EMA is sloping up and the RSI remains in the positive zone, the bulls have a slight edge. If they push the pair above $0.10, the next stop could be $0.11. This level may act as an obstacle but if the bulls clear it, DOGE price may reach $0.15.

This positive view will be invalidated in the near term if the price tumbles below the 20-day EMA. The pair may then reach the 50-day SMA ($0.08).

Related: Is BTC price about to retest $20K? 5 things to know in Bitcoin this week

ADA/USDT

The long tail on Cardano’s (ADA) Feb. 5 candlestick shows that buyers are trying to flip the $0.38 level into support.

If buyers want to strengthen their position, they will have to quickly kick the price above the overhead resistance at $0.42. If they succeed, the ADA/USDT pair could extend its up-move to $0.44. This level may behave as a formidable resistance on the way up but as long as the price sustains above the 20-day EMA, bulls remain in control.

For the bears to regain the upper hand, they will have to sink the price below the 20-day EMA. That could tempt short-term bulls to book profits, putting Cardano price in danger of collapsing to the 50-day SMA ($0.32).

MATIC/USDT

The long wick on Polygon’s (MATIC) Feb. 4 candlestick shows that traders may have booked profits near the overhead resistance at $1.30.

The upsloping 20-day EMA ($1.11) and the RSI in the positive area indicate that buyers are in command. The possibility of a break above $1.30 increases the price turns up from the current level or the 20-day EMA, which could propel MATIC price to as high as $1.70.

One minor negative on the chart is the negative divergence on the RSI. This indicates that the buying pressure is reducing. If the bears sink the price below the 20-day EMA, MATIC may fall to $1.05 and then to the 50-day SMA ($0.93).

DOT/USDT

Buyers are trying to protect the breakout level at the resistance line but are facing selling on rallies. The RSI is showing a negative divergence but a minor positive is that the bulls have managed to keep Polkadot (DOT) above the 20-day EMA ($6.33).

The bulls will try to propel the price above the overhead resistance at $7.13 and resume the up-move. The next stop could be $7.42 where the bulls are likely to face strong selling pressure. If buyers do not give up much ground from $7.42, the DOT/USDT pair should have a good chance of climbing toward $8.

Contrary to this assumption, if the bears tug the price below the 20-day EMA, it will signal the start of a deeper correction. The support level to watch in the event of a pullback is $6. But if it fails to hold, the decline can extend to as low as the 50-day SMA ($5.43).

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.

Bitcoin and altcoins started the week in the red, but if this week’s Federal Reserve meeting aligns with investors’ general expectations, the wider crypto market could quickly rebound.

Traders tend to lighten up positions before important events because they hate uncertainty. The United States Federal Reserve’s next policy decision is on Feb. 1, when the central bank is expected to hike rates by 25 basis points.

Market observers will keenly watch for any hints about how high the rates could go. That could be one of the reasons for the profit-booking in Bitcoin (BTC) and select altcoins on Jan. 30. 

Bitcoin’s sharp recovery in January could also be signaling the start of a new bull market, according to certain on-chain metrics. The Profit and Loss Index from on-chain analytics platform CryptoQuant has given its first buy signal since 2019.

Blockware Solutions head analyst Joe Burnett believes that Bitcoin will not break above its all-time high of $69,000 until the next Bitcoin halving, which is scheduled to occur in March 2024. Burnett anticipates Bitcoin’s next bull market top will be between $150,000 to $350,000, which is a massive increase from the current levels.

What are the important support levels to watch out for in Bitcoin and the altcoins? Let’s study the charts to find out.

SPX

After several failed attempts, the S&P 500 closed above the downtrend line on Jan. 26. However, the bears are not willing to surrender without a fight.

The sellers are trying to halt the recovery at 4,101, but the up-sloping 20-day exponential moving average (3,972) and the relative strength index (RSI) in positive territory indicate that the path of least resistance is to the upside. If buyers thrust the price above 4,101, the index could start its journey toward 4,325.

Alternatively, if the bears yank the price below the moving averages, several aggressive bulls may get trapped and the index could then tumble to 3,764.

DXY

The U.S. Dollar Index (DXY) is falling inside a descending broadening wedge pattern but the bulls are trying to protect the support at 101.29.

The bounce could face selling at the 20-day EMA (102.63) because bears defended this level during downtrends. If the price turns down from the 20-day EMA, the likelihood of a break below 101.29 increases. That could tug the index to the psychologically crucial level of 100.

On the contrary, if the index rises above the 20-day EMA, it will suggest strong demand from the bulls. The index could then rise toward the resistance line of the wedge. The bulls will have to clear this hurdle to suggest that the short-term downtrend may have ended.

BTC/USDT

Bitcoin rose above the resistance at $23,816 on Jan. 29 but the bulls could not build upon the momentum on Jan. 30. That may have tempted short-term traders to book profits and the price has dropped down toward $22,800.

If the price rebounds off $22,800, it will suggest that bulls have flipped the level into support. That could increase the likelihood of a rally to $25,211. Sellers are likely to guard this level with all their might because if $25,211 is conquered, the BTC/USDT pair could dash toward the $30,000 to $32,000 zone.

On the other hand, if bears pull the price below $22,800, the correction could deepen to the 20-day EMA ($21,716) and then to the psychological support at $20,000.

ETH/USDT

Ether (ETH) once again reached near the overhead resistance at $1,680 but the bulls could not overcome this obstacle. That means the price remains stuck between the 20-day EMA ($1,540) and $1,680.

If the price rebounds off the 20-day EMA, it will suggest strong buying on dips. The bulls will then again try to thrust the price above $1,680. If they succeed, the ETH/USDT pair could rally toward $2,000 with a brief stop near $1,800.

Contrary to this assumption, if the price turns down and tumbles below the 20-day EMA, it could attract profit-booking by the short-term bulls. The pair could then decline to the 50-day SMA ($1,365), which may act as a strong support.

BNB/USDT

BNB (BNB) touched the strong resistance of $318 on Jan. 29 but the bulls could not overcome this barrier. This indicates that bears are fiercely defending the level.

The immediate support on the downside is the 20-day EMA ($298). Although the upsloping 20-day EMA suggests advantage to buyers, the negative divergence on the RSI indicates that the positive momentum could be weakening. The selling could accelerate on a break below the 20-day EMA and the BNB/USDT pair could slide to $280.

Contrarily, if the price turns up from the 20-day EMA, the bulls will again attempt to drive the pair above $318. If they manage to do that, the pair could soar to $360.

XRP/USDT

XRP’s (XRP) price is getting squeezed between the 20-day EMA ($0.40) and the overhead resistance at $0.42.

Usually, a tight consolidation near the overhead resistance gives an edge to the buyers but when the bulls fail to surpass the hurdle even after repeated attempts, some traders may book profits.

That could start a deeper correction and in this case, a break below the 20-day EMA could open the doors for a drop to the 50-day SMA ($0.37).

If bulls want to maintain their dominance, they will have to quickly kick the XRP/USDT pair above the $0.42 to $0.44 resistance zone. That could start a rally to $0.51.

DOGE/USDT

The bears are not allowing Dogecoin (DOGE) to sustain above $0.09 and the bulls are not letting it dip below the 20-day EMA ($0.08).

If the price turns up from the current level, the bulls will again try to force the DOGE/USDT pair above $0.09. If they can pull it off, the pair could soar to $0.11, where the bears may again mount a strong defense.

Conversely, if the price breaks below the 20-day EMA, the next stop could be the 50-day SMA ($0.08). This level could act as a minor support but if bears sink the price below it, the pair could collapse to the critical support near $0.07.

Related: Bitcoin price pares weekend gains as another CME ‘gap’ lurks below $20K

ADA/USDT

After trading above the $0.38 resistance for three days, Cardano (ADA) dropped below the breakout level on Jan. 30. This indicates that bears are active at higher levels.

The rising 20-day EMA ($0.36) indicates advantage to buyers but the negative divergence on the RSI warns that the bulls may be losing their grip. The bears will try to yank the price to the 20-day EMA, which is an important level to keep an eye on in the near term.

If the price plummets below the 20-day EMA, the selling could increase and the ADA/USDT pair may fall to $0.32.

Contrarily, if buyers want to maintain their dominance, they will have to quickly thrust the price above $0.40. The pair could then travel to $0.44.

MATIC/USDT

Polygon’s (MATIC) up-move met with heavy selling near $1.20 on Jan. 29. The price could retest the breakout level of $1.05, which is an important level to keep an eye on.

If the price springs back from $1.05, it will signal that bulls have flipped the level into support. The buyers will then try to propel the price above $1.20 and challenge the strong resistance near $1.30.

On the other hand, if the price dives below the 20-day EMA ($1.02), it will suggest that the breakout above $1.05 may have been a bull trap. The MATIC/USDT pair could then tumble to the 50-day SMA ($0.89).

DOT/USDT

Polkadot (DOT) has been struggling to sustain above the resistance line for the past few days, indicating that bears are fiercely defending this level.

The sellers will try to pull the price back below the 20-day EMA ($6). If they manage to do that, it could tilt the near-term advantage in favor of the bears. The DOT/USDT pair could then decline to $5.50 and later to the 50-day SMA ($5.20).

Conversely, if the price bounces off the 20-day EMA, the bulls will try to clear the overhead zone between the resistance line and $6.84. If that happens, the pair could rally toward $8. There is a minor support at $7.42 but that is likely to be crossed.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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.

The rally in stocks could be giving Bitcoin price a boost, and the crypto market could see more fireworks if the Fed confirms investors’ expectation that rate hikes will slow down.

Bitcoin’s (BTC) price has risen about 37% year-to-date and is not showing any signs of slowing down. The S&P 500 index (SPX) has also made a winning start to the year but has seen a relatively muted rally of roughly 4%.

While the price of risky assets are rising, the United States dollar index (DXY), perceived as a safe haven, extended its downtrend and declined more than 1% in January.

The change in sentiment toward risky assets may have been triggered by expectations that the U.S. Federal Reserve could slow down its rate hikes as inflation cools off. Some analysts even expect the Fed to pivot and start cutting rates before the end of the year.

Several analysts remain skeptical about Bitcoin’s rally but the longer the price sustains above $20,000, the greater the possibility that the macro low may have been made in November. If the next decline forms a higher low, it could further confirm that the worst may be behind us.

Could the rally in Bitcoin and altcoins witness profit booking in the next few days? Let’s study the charts to find out.

SPX

The S&P 500 reversed direction from the downtrend line on Jan. 18 and plunged below the moving averages on Jan. 19 but the bears could not sustain the lower levels.

The bulls purchased the dip on Jan. 20 and pushed the price back above the moving averages. Buyers built upon this strength and are trying to clear the overhead obstacle at the downtrend line on Jan. 23. If they manage to do that, it will suggest a potential trend change. The index may soar to 4,325 with a minor pit stop at 4,100.

Contrary to this assumption, if the index fails to sustain above the downtrend line, it will suggest that bears are active at higher levels.

A break below 3,885 could tilt the short-term advantage in favor of the sellers. The index may then decline to 3,764.

DXY

The U.S. dollar index (DXY) continues to be in a downtrend. Buyers tried to start a recovery on Jan. 18 but the bears did not relent.

The downsloping moving averages and the RSI in the negative territory indicate that bears are firmly in the driver’s seat. Buyers may try to defend the support line of the descending broadening wedge pattern but could face strong selling at the 20-day EMA (103).

On the downside, buyers are likely to guard the psychological level of 100 because if this support cracks, the selling could intensify and the index may tumble to 97.

The first sign of strength will be a break above the 20-day EMA. That could open the doors for a possible rally to the resistance line of the wedge.

BTC/USDT

The bulls pushed Bitcoin above $22,800 on Jan. 21 and Jan. 22 but the long wick on the candlesticks shows that bears are selling at higher levels. The bears tried to start a correction on Jan. 22 but the bulls purchased the intraday dip as seen from the long tail on the candlestick.

Although the upsloping moving averages indicate advantage to buyers, the RSI in the overbought territory cautions that a minor correction or consolidation is possible. For that to happen, the bears will have to pull and sustain the price below $22,292. The BTC/USDT pair could then slide to $21,480.

Conversely, if buyers propel the price above the $23,078 to $23,371 resistance zone, the pair could accelerate to $25,211. The bears may mount a strong defense at this level, which could lead to a short-term correction.

ETH/USDT

Ether’s (ETH) price is facing rejection at $1,680 but a positive sign is that the bulls have not ceded ground to the bears. This suggests that the short-term traders are holding their positions as they anticipate the up-move to continue.

The rising 20-day EMA ($1,483) and the RSI in the overbought territory suggest the path of least resistance is to the upside.

A break and close above $1,680 could start the journey to $1,800. This level may again act as a resistance but if bulls do not allow the price to slip below $1,680 during the next pullback, the likelihood of a rally to $2,000 increases.

This positive view could invalidate in the near term if the price turns down from the current level and slumps below the 20-day EMA. The ETH/USDT pair could then remain range-bound between $1,352 and $1,680 for some time.

BNB/USDT

BNB’s (BNB) relief rally is facing selling near the overhead resistance at $318 but the bulls have not ceded ground to the bears. This suggests that buyers are not rushing to the exit as they expect the price to rise above $318.

The upsloping 20-day EMA ($287) and the RSI in the positive zone indicate that bulls have the upper hand. If buyers thrust the price above $318, the BNB/USDT pair could accelerate to $360 as there is no major resistance in between.

If the price turns down sharply from the current level, the pair could drop to the 20-day EMA. This level may attract strong buying by the bulls. If the price rebounds off the 20-day EMA, the buyers will again try to clear the overhead hurdle at $318 and resume the uptrend. The short-term advantage could tilt in favor of the bears on a break below the 50-day simple moving average ($269).

XRP/USDT

After a shallow two-day pullback, buyers pushed XRP (XRP) above the stiff overhead resistance at $0.42 on Jan. 23. This indicates that every minor fall is being purchased.

The 20-day EMA ($0.38) is sloping up and the RSI is near the overbought region, indicating that bulls are in command. However, the bears may not surrender easily and will try to defend the $0.42 level with all their might because if this level gives way, the XRP/USDT pair could quickly jump to $0.51.

If the price fails to sustain above $0.42, the bears will try to pull the pair below $0.39. If that happens, the possibility of a break below the 20-day EMA increases.

DOGE/USDT

Dogecoin (DOGE) continues to face selling above $0.09 but the bulls are not willing to abandon their effort.

The moving averages have completed a bullish crossover and the RSI is in the positive territory, indicating advantage to buyers. If the price sustains above $0.09, the DOGE/USDT pair could surge to $0.11. This level may act as a formidable barrier and the bulls may find it difficult to ascend it in the near term.

If the price fails to sustain above $0.09, short-term traders may book profits and that could sink the pair below the moving averages. The pair may then decline to the support near $0.07.

Related: 3 signs Axie Infinity price risks giving up its 135% gains in January

ADA/USDT

Cardano (ADA) continues to move up gradually but the bears are trying to stall the recovery near $0.38. If the price turns down from the current level, it could slump to the 20-day EMA ($0.33).

This is an important level to watch out for because a strong rebound off the 20-day EMA will suggest a change in sentiment from selling on rallies to buying on dips. The bulls will then make another attempt to overcome the barrier at $0.38. If they are successful, the ADA/USDT pair could soar to $0.44.

If bears want to gain the upper hand in the near term, they will have to yank the price below the 20-day EMA. The pair could then decline to the 50-day SMA ($0.29).

MATIC/USDT

The bulls tried to propel Polygon (MATIC) above the overhead resistance of $1.05 on Jan. 21 but the bears did not budge. Although the bears have successfully defended $1.05 in the past few days, they have not been able to tug the price below the 20-day EMA ($0.93).

The upsloping 20-day EMA and the RSI in the positive zone suggest that bulls have a slight edge. The repeated retest of a resistance level tends to weaken it. If the price turns up from the current level, the prospects of a break above the overhead resistance improve. The MATIC/USDT pair could then jump to $1.16 and thereafter to $1.30.

Contrarily, if the price turns down from the current level, the bears will sense an opportunity and try to drag the pair below the 20-day EMA. If they can pull it off, the pair may remain stuck inside the $0.69 to $1.05 range for a while longer.

DOT/USDT

Polkadot (DOT) formed a Doji candlestick pattern on Jan. 21 and Jan. 22, indicating indecision among the bulls and the bears about the next move.

That uncertainty resolved to the upside on Jan. 23 with a break above $6.50. If buyers sustain the price above this level, the DOT/USDT pair could first rise to $7.42 and if this level is taken out, the rally could touch $8. The upsloping moving averages and the RSI in the overbought territory indicate that bulls are in control.

The important level to watch on the downside is the 20-day EMA ($5.63). Sellers will have to sink the price below this support if they want to make a comeback.

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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.