On March 7, United States Federal Reserve Chairman Jerome Powell warned that interest rates might remain higher for longer than previously anticipated. This boosted expectations of a 50 basis point rate hike at the Fed’s March meeting to about 70%, from 30% a week earlier, according to FedWatch Tool data.
The U.S. dollar shot up and the S&P 500 plunged after Powell’s comments on March 7 but a minor positive in favor of the cryptocurrency investors is that Bitcoin (BTC) stayed relatively calm. The next trigger that could influence the markets is the February Jobs report to be released on March 10.
Although the macroeconomic environment is not favorable for risky assets, Bitcoin has shown relative resilience. This suggests that Bitcoin investors are not panicking and dumping their positions due to short-term uncertainty.
Will Bitcoin and the major altcoins continue lower or is a rebound around the corner? Let’s study the charts of the top-10 cryptocurrencies to find out.
The bulls are finding it difficult to push Bitcoin back above the breakdown level of $22,800. This suggests a lack of aggressive buying at current levels. That could pull the price down to the crucial support of $21,480. This is the make-or-break level in the near term.
The moving averages have completed a bearish crossover and the relative strength index (RSI) is in the negative territory, indicating that bears are in command.
If the price breaks below $21,480, the bears will fancy their chances. They will then try to yank the price to the psychologically important level of $20,000. Buyers are expected to defend the zone between $21,480 and $20,000 with all their might because a break below it may witness aggressive selling.
If bulls want to prevent the sharp decline, they will have to quickly push the price back above the moving averages. That could signal a possible range-bound action between $21,480 and $25,250.
Buyers are trying to protect the $1,550 level on Ether (ETH) but a minor negative is that they have failed to achieve a strong rebound off it. This suggests that the bears are selling on every small recovery.
The 20-day exponential moving average ($1,599) has started to turn down and the RSI is in the negative zone, indicating that bears have the upper hand. If the $1,550 support cracks, the ETH/USDT pair may drop to $1,461.
This level may again attract strong buying by the bulls. If the price rebounds off this level with strength, it will suggest that the pair may consolidate between $1,461 and $1,743 for some time. Contrarily, a break below $1,461 will open the doors for a possible drop to $1,352. This level may again attract strong buying by the bulls.
BNB (BNB) bounced off the $280 support on March 6 and March 7 but the bears pounced at higher levels. This suggests that the sentiment remains negative and every minor recovery is being sold into.
If the $280 gives way, the BNB/USDT pair will complete a bearish head and shoulders pattern. This negative setup may start a downward move to $245 where buyers will try to arrest the decline.
Another possibility is that the bulls sustain the current rebound. Such a move will indicate that the buyers are fiercely defending the $280 support. That may start a recovery to the 20-day EMA ($299).
The bears are expected to sell the rally to the 20-day EMA. If that happens, the pair may again slide to $280. On the contrary, a break above the 20-day EMA will be the first sign that suggests the bears may be losing their grip.
XRP (XRP) rebounded off the $0.36 support with strength and soared above the resistance line of the descending channel on March 8, a sign that the bulls are buying with full force.
If buyers sustain the price above the 50-day simple moving average ($0.39), it will suggest a potential trend change in the near term. The XRP/USDT pair may then start its march toward $0.43 where the bears are again likely to mount a strong defense. If the price turns down from this level, the pair may oscillate between $0.36 and $0.43 for a while longer.
Conversely, if the price turns down from the current level, it will suggest that the bears are not willing to let the bulls have their way. Sellers will then again try to pull the pair below $0.36 and clear the path for a possible drop to $0.33.
Cardano (ADA) bounced off $0.32 on March 7 but the bulls could not build upon this strength. This shows a lack of follow-up buying at higher levels.
The bears are again trying to pull and sustain the price below $0.32 on March 8. If they manage to do that, there is another support at the 61.8% Fibonacci retracement level of $0.30. If this level breaks down, the selling could intensify and the ADA/USDT pair may plummet to the 78.6% Fibonacci retracement level of $0.27.
Contrary to this assumption, if the price turns up from the current level or $0.30, the pair may again attempt a recovery. The bulls will gain the upper hand after they propel the price above the moving averages.
Dogecoin (DOGE) has been gradually grinding down toward the strong support near $0.07 but a minor positive is that lower levels are attracting buyers, as seen from the long tail on the March 6 and March 7 candlestick.
The bulls are trying to push the price toward the breakdown level of $0.08. This level is likely to attract strong selling by the bears. If the price turns down from $0.08, the DOGE/USDT pair may drop to $0.07 and remain stuck between these two levels for some time.
The bears may find it difficult to break the support near $0.07 but if they do, the pair could tumble to the next major support near $0.06. On the upside, a break and close above the downtrend line will signal the start of a possible recovery toward $0.10.
Polygon (MATIC) has been trading in a tight range for the past few days, which resolved to the downside on March 8. The failure to start a recovery suggests that the bulls may be wary of buying at the current levels.
The MATIC/USDT pair could slide to the strong support at $1.05 where the bulls will try to protect the level. If the price rebounds off this support, the pair could pullback to the moving averages.
This is an important level to keep an eye on because a break and close above it may suggest that the correction may be over. The pair may not start a new up-move in a hurry but remain range-bound for a few days.
On the other hand, if the price turns down from the moving averages, it will suggest that bears continue to sell on rallies. The bears will then again try to sink the price below $1.05. If they succeed, the pair may slip to $0.90.
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Solana (SOL) remains in a firm bear grip. The failure to start a rebound off the crucial support at $19.68 shows that buyers may not be jumping in to buy.
The bears have yanked the price below $19.68 on March 8. This indicates the start of the next leg of the correction. The bears will try to strengthen their position further by pulling the SOL/USDT pair toward the next major support near $15.
If bulls want to prevent this collapse, they will have to quickly push the price back above the 20-day EMA ($21.80). That may start a relief rally to the resistance line, where the bears may again pose a strong challenge.
Polkadot (DOT) turned down and broke below the support at $5.73 on March 8. This indicates that the bears are trying to solidify their position further.
There is a strong support at $5.56 but if this level cracks, the DOT/USDT pair may enter a downward spiral. The next support is much lower at $4.80.
Contrary to this assumption, if the price rebounds off $5.56, the pair could reach the 20-day EMA ($6.30). During downtrends, the bears try to sell on rallies to the 20-day EMA. If the price turns down from this level, the likelihood of a break below $5.56 increases.
If bulls want to make their presence felt, they will have to drive the price above the moving averages.
Litecoin (LTC) turned down and broke below the immediate support of $85 on March 7. This indicates the resumption of the correction.
The LTC/USDT pair could first fall to the $81 support. The bounce off this level may face selling near the 20-day EMA ($92). If the price turns down from the 20-day EMA, the next stop could be the vital support at $75. This level is likely to attract solid buying by the bulls.
The farther the price moves away from the local top of $106, the longer it will take for the pair to resume its uptrend. The recovery is likely to pick up momentum after the price sustains above the moving averages.
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