Several cryptocurrencies have broken out of their first resistance levels, which suggests that the bulls might be back in the game.
Roughly 42% of the total Bitcoin supply has not moved in the past two years. This shows that the investors are holding on to their Bitcoin as they expect the price to rally further. Lesser quantity of Bitcoin in circulation increases scarcity and with the upcoming halving, the supply is only going to decrease further, which could boost prices.
The creator of the stock-to-flow Bitcoin price model PlanB believes that “Bitcoin will probably go over $100k before Dec 2021.” While PlanB is banking on halving to boost prices, Max Keiser of The Keiser Report, expects the financial markets to tumble due to the coronavirus epidemic. This might result in a global financial crisis, which can carry Bitcoin to “$100,000 and beyond.”
Daily cryptocurrency market performance. Source: Coin360
While the crypto investors are excited about the future prospects of Bitcoin, the next BOE Governor has cautioned investors against buying it. He said: “If you want to buy Bitcoin, be prepared to lose all your money… [Bitcoin] has no intrinsic value.”
Previously, one of the main complaints of the central banks and the regulators was that Bitcoin was mainly used by darknet markets. However, according to Chainanalysis, in 2019, only 1.1% of the total $1 trillion worth of cryptocurrency transactions went into illicit activities. This shows that the asset class is in healthier hands.
Bitcoin (BTC) has broken out of the tight $8,400-$9,000 range but is facing minor resistance at the 20-day EMA at $9,135. If the bulls can propel the price above the 20-day EMA, a move to $10,000 and above it to $10,500 is possible.
BTC USD daily chart. Source: Tradingview
The 20-day EMA is flattening out and the RSI has risen close to the midpoint, which suggests that the selling pressure is reducing. Therefore, we retain the buy recommendation given in the previous analysis.
Contrary to our assumption, if the BTC/USD pair turns down from the current levels and drops below $8,400, it will be a huge negative. The next major support is at $7,856.76. We anticipate the bulls to defend this support aggressively.
The bulls are attempting to drive Ether (ETH) above the overhead resistance at $235.70. If successful, a move to $277.091, followed by a rally to $288.599 is possible. Therefore, we retain the buy suggested in the previous analysis.
ETH USD daily chart. Source: Tradingview
Contrary to our assumption, if the ETH/USD pair turns down from the current levels or fails to sustain above $235.70, a few days of range-bound action is likely. The flattish 20-day EMA and the RSI close to 50 levels also point to a balance between the buyers and sellers.
The trend will turn in favor of the bears on a break below $209.95. If this level cracks, the next support is at $197.75.
XRP price has broken above the descending triangle but the bulls will face a stiff hurdle at the moving averages at $0.25. Above this level, the next resistance will be the neckline of the head and shoulders pattern at $0.26362.
XRP USD daily chart. Source: Tradingview
If the XRP/USD pair turns down from the overhead resistance levels, it might remain range-bound for a few days.
Conversely, if the bulls can push XRP price above $0.26362, a rally to $0.28550 and above it to $0.31503 is possible. As the pair has been an underperformer, we will wait for the price to sustain above $0.26362 before turning positive.
Bitcoin Cash (BCH) has broken out of the descending channel. This shows that the failure to sink the price below $306.78 is attracting buyers. However, the bulls might hit a roadblock at the 20-day EMA, which is just below the horizontal resistance at $360.
BCH USD daily chart. Source: Tradingview
If the BCH/USD pair turns down from $360, a few days of range-bound action is likely. The pair will turn negative on a break below $306.78.
Nevertheless, if the bulls can push the price above $360, a rally to $400 and above it to $428.57 is possible. Therefore, the traders can buy on a close (UTC time) above $360 and keep the stop loss at $306. The stops can be trailed higher if the price moves northwards.
Though Bitcoin SV (BSV) broke below the $236 support on March 4, the bears could not capitalize on the move. This shows some buying at lower levels. Currently, the bulls are attempting to push the price above the 20-day EMA.
BSV USD daily chart. Source: Tradingview
If successful, the BSV/USD pair can move up to $337.80 with a minor resistance at $301.43. We expect the bears to defend $337.80 aggressively. If the price turns down from this level, the pair might remain range-bound for a few days.
However, if the pair turns down from the 20-day EMA and plummets below $236 once again, it will signal the presence of sellers at higher levels. A breakdown of $200 support will be a huge negative.
Litecoin (LTC) held the 200-day SMA support on March 4, which has attracted some buying. The bulls will now try to carry the price above the overhead resistance at $66.1486 but we anticipate the bears to mount a stiff resistance at that level.
LTC USD daily chart. Source: Tradingview
If the LTC/USD pair turns down from $66.1486, it might remain range-bound for a few days. On the downside, any break below $56.243 will be a huge negative.
However, if the bulls can propel the pair above $66.1486, a rally to $80.2741 is likely. The traders can buy on a close (UTC time) above $66.1486 with an initial stop loss of $56.
EOS has broken out of the downtrend line, which suggests that buyers are trying to make a comeback. However, it is not going to be an easy ride because the bears will defend the overhead resistance at $4 aggressively.
EOS USD daily chart. Source: Tradingview
If the EOS/USD pair turns down from $4, it might dip to the 200-day SMA at $3.3 and consolidate between the two levels for a few days. A break below the 200-day SMA will be a huge negative.
Conversely, if the bulls can push the price above $4, a move to $4.4124 and above it to $4.8719 is possible. The bulls can initiate long positions on a close (UTC time) above $4 and keep the stops at $3.3.
Binance Coin (BNB) has broken out of the descending channel and also the 20-day EMA, which is a positive sign. However, we expect the bears to mount a stiff resistance at $21.80 and above it at $23.5213.
BNB USD daily chart. Source: Tradingview
If the BNB/USD pair turns down from either overhead resistance levels, it might consolidate for a few days.
A break above $23.5213 can carry the price to $27.1905 and above it to $32. On the other hand, a break down of the recent lows at $17.7051 will be a huge negative. We will wait for a new buy setup to form before proposing a trade in it.
Tezos (XTZ) broke out and closed (UTC time) above the overhead resistance at $3.011 on March 4, which triggered our buy recommendation given in an earlier analysis. The bears attempted to sink the price back below $3.011 on March 5 but the bulls defended the breakout levels.
XTZ USD daily chart. Source: Tradingview
If the bulls can push the price above $3.3367, a move to $3.585 and above it to $3.9499 is possible. The 20-day EMA has started to turn up and the RSI has risen into the positive territory, which suggests that bulls are in command.
The traders can keep the stop loss on the long positions at $2.70. Our bullish view will be invalidated if the bears sink and sustain the XTZ/USD pair below the critical support at $3.011.
The bulls are facing stiff resistance at the psychological level of $5. However, the positive thing is that the buyers are not closing their positions in a hurry. If Chainlink (LINK) consolidates near the lifetime highs, it will increase the possibility of a breakout to new highs.
LINK USD daily chart. Source: Tradingview
If the bulls can thrust the price above $5, the next target to watch out for is $5.6934 and above it $7.3101. The upsloping 20-day EMA and the RSI in the positive territory suggest that bulls have the upper hand.
Nonetheless, if the bears sink the LINK/USD pair below $4.50, a drop to the 20-day EMA at $4.16 is possible. We will wait for a buy setup to form before proposing a trade in it.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.