Traders opted for safer options after the crisis at Silicon Valley Bank (SVB), resulting in a 4.55% drop in the S&P 500 Index and around a 9% decrease in Bitcoin (BTC) this week.
The SVB collapse triggered turmoil in the crypto sphere, impacting USD Coin (USDC), which lost its peg to the U.S. dollar due to reports that $3.3 billion of Circle’s $40 billion USDC reserves were held at SVB. USDC, previously near $0.87 on March 11, has now risen above $0.96 at the latest update.
The failure of SVB has raised uncertainty in the short term, with investors closely monitoring any indications of the crisis spreading to other regional U.S. banks.
In times of uncertainty, it’s advisable to observe from the sidelines. However, should there be no fallout from SVB’s downfall, certain cryptocurrencies could kickstart their recovery. The chosen cryptocurrencies in this piece are all trading above the 200-day simple moving average, a crucial level for long-term investors to assess an asset’s market phase.
Let’s delve into the analysis of Bitcoin and four alternative coins that might shine if the sector sees a turnaround in the coming days.
Bitcoin Price Analysis
Bitcoin has retraced to the 200-day SMA ($20,389). Buyers are anticipated to vigorously defend this level as a breach below it could trigger more selling.
On the upside, the 20-day exponential moving average ($22,042) is likely to pose a significant obstacle. Failure to break above the 20-day EMA might lead the BTC/USDT pair to retest support near the 200-day SMA, and further slides could target $18,400 and then $16,300.
To prevent a decline, bulls need to steer the price above the 20-day EMA, signaling potential momentum building up towards the overhead resistance at $25,250.
The 4-hour chart reveals bullish attempts to recover from $19,550, yet bears are staunchly defending the 20-EMA. A downturn from the current level could see bears attempting to push the pair below $19,950, potentially leading to a drop to $18,400.
In contrast, an upturn and breach above the 20-EMA could alleviate short-term selling pressure, initiating a recovery towards $21,480, with a potential obstacle at $22,800.
Ether (ETH/USDT) Analysis
Ether (ETH) briefly slipped below the 200-day SMA ($1,421) on March 10, showing robust buying interest at lower levels through a long tail on the candlestick.
Resistance near $1,461 is challenging the current recovery. A downturn from this level towards the 200-day SMA may signal bearish sentiment, potentially leading to a drop below $1,352 and a further decline to $1,100.
Bulls could prevent a decline by propelling the price above the 20-day EMA ($1,548), paving the way for a possible rally towards $1,743 and potentially $2,000.
On the 4-hour chart, the pair is striving for a rebound, with the 20-EMA stabilizing and the RSI below the midpoint, suggesting a balance between supply and demand.
A sustained rise above $1,500 may fuel a relief rally towards $1,600, while a downturn breaking below the uptrend line could favor bears, possibly retesting strong support at $1,352.
Polygon (MATIC/USDT) Analysis
Polygon (MATIC) underwent a substantial correction from $1.56 on Feb. 18, reaching the 200-day SMA ($0.94) on March 10, with evident bullish defense at this level.
The pair faces a probable resistance at the 20-day EMA ($1.15), where bears might exert pressure. A reversal from this level could signify negative sentiment, potentially pushing the pair below the 200-day SMA towards $0.69.
Conversely, buyers boosting the price above the 20-day EMA could suggest a positive tone with a potential rise to $1.30.
The ongoing recovery from $0.94 has reached the 20-EMA, a critical level to monitor for a possible rally to $1.15.
Bulls managing to prevent the next downturn above $1.05 may indicate a potential end to the downtrend, opening doors to a rise towards $1.30.
A downtrend may resume if the price turns downward, breaching the $0.94 support level.
Toncoin (TON/USDT) Analysis
Toncoin (TON) stands significantly above its 200-day SMA, indicating traders’ reluctance to exit.
Forming a symmetrical triangle pattern near a local high, the price action within the triangle remains volatile. A breakout above the triangle’s resistance line could signal a move towards $2.90, representing a continuation pattern.
However, a drop below the triangle and the 200-day SMA ($1.90) may indicate bearish control, potentially driving the price to $1.30, signaling a reversal setup.
On the 4-hour chart, the downsloping 20-EMA and negative RSI imply bearish dominance. Falling below $2.18 could extend the drop to $2, while an upsurge above the 20-EMA might suggest a bullish attempt, aiming for $2.45 and potentially aiming for the triangle near $2.50.
OKB (OKB/USDT) Analysis
OKB (OKB) is undergoing a corrective phase but remains notably above its 200-day SMA ($26).
The $36.13 and $30.76 levels serve as crucial support zones, likely defended strongly by bulls. A bounce from these levels could push the OKB/USDT pair towards the 20-day EMA ($45.48), possibly signaling the correction’s end.
A breakdown below $30.76 could hint at bearish momentum, possibly leading to a plunge to the 200-day SMA.
On the 4-hour chart, the downsloping 20-EMA and negative RSI favor bears. A slip below $37.50 may extend to $36.13, while an upturn beyond the 20-EMA could signal bulls reasserting control, targeting $44.35 and potentially $50.
**Disclaimer**: This article does not provide investment advice. Readers should conduct their research before making any investment decisions.
