Bitcoin is holding strong above the $80,000 mark since March 11, signaling bullish vibes in the crypto sphere. The bulls are not backing down, but the bears are also not giving up easily, as they continue to sell during rallies, preventing Bitcoin from breaking past the $86,000 barrier.
In a twist of events, CoinShares reported a massive $1.7 billion outflow from cryptocurrency exchange-traded products (ETPs) last week. This marks a five-week streak of outflows totaling $6.4 billion, the longest negative streak since 2015. Despite this, long-term investors have reasons to stay optimistic.
CryptoQuant’s ShayanBTC points out that investors who bought Bitcoin three to six months ago are showing an accumulation pattern. Historically, such behavior has been a precursor to market bottoms and new uptrends. Could this be the calm before the storm?
The S&P 500 Index (SPX) is currently in a corrective phase, with its RSI dipping into oversold territory. A relief rally might be on the horizon, but bears are likely to resist any recovery attempts in the 5,670 to 5,773 resistance zone. Bulls need to defend the 5,400 level to prevent a further decline.
Meanwhile, the US Dollar Index (DXY) is struggling to rebound from the 103.37 support. If bears succeed in pushing it lower, it could drop to 102 or even 101. However, a break above 104 could signal a comeback for buyers.
Bitcoin is attempting to form a higher low and gather strength to break above the 200-day SMA at $84,112. A positive divergence on the RSI suggests weakening bearish momentum. If buyers push Bitcoin above the 20-day EMA at $85,808, it could rise to the 50-day SMA at $92,621.
Ether is stuck between $1,963 and $1,821, indicating a lack of aggressive buying. A dip below the $1,821 to $1,754 support zone could resume the downtrend, while a break above the 20-day EMA at $2,107 might lead to a rally toward $2,857.
XRP faces resistance at the 50-day SMA of $2.51. A break above this level could trigger a rally to $3, but a drop below $2 might complete a head-and-shoulders pattern, potentially sending XRP down to $1.28.
BNB shows signs of recovery as it rises above the 50-day SMA at $620. Sustaining above this level could lead to a rally toward $745. However, a break below the 20-day EMA at $598 might give bears control.
Solana is facing resistance at the 20-day EMA of $139. A drop to $120 or even $110 is possible if bears maintain pressure. However, a rebound off these levels could lead to a climb back toward $180.
Dogecoin is inching closer to the 20-day EMA at $0.19. A break above this level could signal reduced selling pressure and lead to a rise toward $0.29. Conversely, a drop below $0.14 might send Dogecoin tumbling to $0.10.
Cardano remains below the 20-day EMA at $0.76 but shows signs of drying up selling pressure at lower levels. A move above the moving averages could trigger a climb toward $1.02.
Pi is sliding toward the $1.23 support, which could attract bullish buying. A rebound might push Pi back toward $1.80 or even higher if bulls prevail.
In conclusion, while some indicators suggest potential rallies for Bitcoin and other cryptocurrencies, investors should remain cautious and conduct thorough research before making any trading decisions. The crypto market remains volatile and unpredictable, offering both opportunities and risks for traders and investors alike.
