The recent banking crisis news in the United States and Europe has influenced a movement of funds towards investments deemed less risky. Reportedly, U.S. money market funds experienced an influx of $286 billion in March.
Due to this, there could be a portion of these funds flowing into the cryptocurrency space, possibly contributing to the strong performance of Bitcoin (BTC) in March.
The critical question among crypto investors now is whether this recovery trend will persist or if it’s wise to secure profits in Bitcoin.
Bitcoin investors appear to remain optimistic about the long-term prospects and are not succumbing to the temptation of selling their assets following the recent surge. Data from Glassnode indicates that the percentage of dormant Bitcoin supply since March 2021 has hit a new record high.
In case the banking crisis stabilizes, there might be a temporary correction in Bitcoin and other altcoins. However, any further troubles in the traditional banking system could continue to attract investments towards Bitcoin. Let’s delve into the charts to ascertain the critical support and resistance levels for Bitcoin and altcoins.
S&P 500 index price analysis
The S&P 500 index (SPX) is currently within a descending broadening wedge pattern. Buyers attempted to breach the wedge on March 22, but sellers managed to hold their ground.
If sellers drive the price below the 200-day simple moving average (3,931), the index might decline to 3,800. Conversely, a bullish defense at the moving averages could signal demand at lower levels. If buyers succeed in surpassing the wedge’s resistance line, the index could surge to 4,200.
U.S. dollar index price analysis
While buyers briefly pushed the U.S. dollar index (DXY) above the 20-day exponential moving average on March 15, they failed to maintain the breakout. This suggests bearish pressure prevailing in the market.
A break below the critical support level at 100.82 might lead to a downward move towards 95. On the flip side, overcoming the 200-day SMA at 106 could push the price towards the 61.8% Fibonacci retracement level at 108.43.
Bitcoin price analysis
Bitcoin has encountered resistance around $29,000 but remains well supported by bulls, preventing a drop to $25,250. With the 20-day EMA and RSI showing positive signs, the path of least resistance is upwards.
If buyers push the price past $29,000, the BTC/USDT pair could target $32,500 and potentially reach $40,000. However, a break below $25,250 would embolden the bears to target the 200-day SMA at $20,219.
Ether price analysis
Ether (ETH) rebounded off the 20-day EMA but faces resistance near $1,857. The bears might aim to push the price below $1,680, targeting $1,600 and potentially the 200-day SMA at $1,435.
Alternatively, a bounce off the 20-day EMA could lead to a rally towards $1,857 and further to $2,000 and $2,200.
BNB price analysis
BNB bounced off the 20-day EMA but struggles to break the downtrend line, indicating selling pressure. A sustained move below the EMA could drive the BNB/USDT pair towards the 200-day SMA at $290 and possibly to $265.
On the contrary, a breakout above the downtrend line might trigger a rally towards the $338 to $346 resistance zone.
XRP price analysis
XRP faced resistance after trying to resume its recovery movement. Bears could pull the XRP/USDT pair back towards the moving averages. Holding above the 20-day EMA at $0.41 could indicate buyers’ strength, potentially pushing the pair higher to $0.65 and $0.80.
Conversely, slipping below the moving averages might signal bearish control, potentially leading to a drop towards $0.36.
Cardano price analysis
Cardano (ADA) dropped below the 200-day SMA and reached the 20-day EMA before a weak recovery attempt. Further downward pressure could lead the ADA/USDT pair to $0.32 and $0.30.
A move above the 200-day SMA could signify demand at lower levels and a potential rally towards the neckline of an inverse H&S pattern.
Polygon price analysis
Polygon (MATIC) exhibited weak buying interest following a bounce off $1.05. A sustained break below this support level could drive the MATIC/USDT pair towards the 200-day SMA at $0.97 and potentially to $0.69.
However, reclaiming the 20-day EMA at $1.13 might initiate a rally towards the resistance zone between $1.25 and $1.30.
Dogecoin price analysis
Dogecoin (DOGE) has been trading within a range between the 200-day SMA and horizontal support. The lack of a clear trend suggests potential range-bound movement, with a break above the 200-day SMA opening up the path towards $0.10 to $0.11.
Conversely, a downside break below $0.07 could lead to further declines towards $0.06 and $0.05.
Solana price analysis
Solana (SOL) struggled below the 20-day EMA, indicating bearish momentum. An attempt to break above this level could signal a potential rally towards $27 and possibly to $39.
However, holding below $20 might lead SOL/USDT towards the immediate support at $18.70 and potentially to $15.28.
The information provided in this article is based on the author’s analysis and does not represent investment advice. Readers are advised to conduct their own research before making investment decisions.
Disclaimer: Investment in cryptocurrencies involves risk, and readers should be cautious and informed before making any financial decisions.
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