Bitcoin (BTC) is set to end the week with gains exceeding 23%. The recent financial turmoil in the United States and Europe has led to increased interest in Bitcoin, suggesting that it is being viewed as a safe-haven asset in the short term.
The focus is now on the upcoming Federal Reserve meeting on March 21 and 22. With the banking issues in the U.S., there are expectations that the Fed may not raise interest rates during the meeting. According to the CME FedWatch Tool, there is a 38% chance of a rate pause and a 62% chance of a 25 basis points rate hike on March 22.
Experts have differing opinions on the impact of the current crisis on the economy. Balaji Srinivasan, former Coinbase chief technology officer, predicts a period of hyperinflation in the U.S., while Twitter user James Medlock holds a different view. Srinivasan is even considering a million-dollar bet with Medlock and another individual on Bitcoin reaching $1 million by June 17.
While anything can happen in the volatile crypto markets, traders are advised to be cautious in their trades and avoid getting carried away by overly ambitious targets.
Let’s now take a look at the price analysis of Bitcoin and some altcoins that are showing signs of a potential uptrend following a minor correction.
Bitcoin Price Analysis
Bitcoin surged past the $25,250 resistance on March 17, forming a bullish inverse head and shoulders (H&S) pattern.
Typically, after a breakout from a major pattern, the price may retest the breakout level before continuing its rally.
The rising 20-day exponential moving average ($24,088) and the overbought relative strength index (RSI) favor the buyers. If the price breaches $28,000, it could gain momentum towards $30,000 and then $32,000, a level that may encounter strong selling pressure.
Alternatively, a downward turn from the current level, bouncing off $25,250, would still support the bullish trend.
However, a near-term bearish scenario would involve a significant drop below the moving averages, indicating a possible bear trap post the $25,250 breakout and potentially leading to a drop to $20,000.
The 4-hour chart for BTC/USDT shows a resistance near $27,750, with buyers aiming to surpass $28,000 for a continuation of the uptrend towards $30,000. A breakdown below the 20-EMA may signal bearish pressure and a test of the crucial $25,250 support level.
Ether Price Analysis
On March 18, Ether (ETH) surpassed the $1,800 resistance but failed to sustain higher levels, indicating strong resistance around that price point.
Critical support levels lie between $1,680 and the 20-day EMA ($1,646). A bounce from this zone would indicate positive sentiment and buying interest on dips.
In such a scenario, buyers may push for an uptrend towards the next target of $2,000, a level likely to present a tough challenge.
Conversely, a drop below the moving averages would suggest weakening bullish momentum, with the ETH/USDT pair potentially falling to $1,461.
The 4-hour chart reveals a bounce off the $1,743 support, indicating bullish behavior and a potential rally towards $1,841 and beyond. A breakdown below $1,743 could see a decline towards the $1,680 support level.
BNB Price Analysis
BNB (BNB) surged above $338 on March 18, invalidating a bearish H&S pattern and attracting buying interest from bulls and short covering by bears.
Sustaining price above immediate support at $318 could propel the BNB/USDT pair towards $360 and later $400, supported by the rising 20-day EMA ($309) and RSI in overbought territory.
A reversal of price below the moving averages could see a decline to $280, though a challenging task for the bears. Buyers are focusing on breaking past the $338 resistance, likely pushing the pair towards $346 and ongoing uptrend.
Failure to maintain the support at $318 could trigger a slide further downwards, where buyers may intervene around that level.
Stacks Price Analysis
Stacks (STX) showed a sharp rally from $0.52 to $1.29 within a short period, indicating aggressive buying.
While encountering profit-booking near $1.29, bulls are holding ground against the bears, suggesting minor dips are being bought. A potential uptrend resumption could occur if price surpasses $1.29 towards $1.55 and $1.80.
A drop below $1 may lead to a correction towards the 20-day EMA ($0.84), a level pivotal for bulls to maintain in order to resume the uptrend.
On the 4-hour chart, buyers are active around the 20-EMA, aiming to break above the $1.29 resistance. Bears might initiate a downward move with a breach below the 20-EMA, targeting support levels at $1.
Immutable Price Analysis
Immutable (IMX) broke above the $1.30 resistance on March 17, establishing an inverse H&S formation and signaling a potential uptrend.
A retest of the $1.30 breakout level may confirm bullish strength, with a potential uptrend to $1.59 and further to $1.85 and $2. Buyers are currently defending the 20-EMA, pushing for a break above $1.59.
However, a drop below the moving averages may suggest a bear trap, leading the pair down to $0.80. A bounce off the 20-EMA could reinforce bullish sentiment and a move towards $1.59.
**Disclaimer:** This article is for informational purposes only and does not offer investment advice. Readers are encouraged to conduct their own research before making any financial decisions.
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