Bitcoin price correction is accelerating, but its jump from the 50-day moving average could promise the upward movement of altcoins to support lower levels.
Over the past few days, Bitcoin has been price-adjusting, and this downturn has left traders curious as to whether this is a slight pullback or the start of a deeper downturn. The problem is that almost no one has a magic wand, and analysts can only point to critical support levels based on past price data and evidence.
However, in the downward phase of the price, traders’ fears and worries about a possible fall will cause the price to fall. This scenario is similar to the gradual rise in prices due to traders’ fear of being left out (FOMO) and entering into buy trades. Bitcoin has historically performed poorly in March of last year. This may indicate that seasonal traders prefer to be on the margins of the market rather than enter the market when prices fall. This lack of demand may be one of the reasons for the decline in the premium of GraySkill’s Bitcoin deposit.
However, not all data and indicators are declining. On February 26, Lex Moskovski, CEO of Moskovsky Investment Corporation, noted the positive reversal of the Bitcoin miners’ position on this date for the first time since December 27. In addition, CryptoQuant CEO Ki Jong Yu, referring to the outflow of capital from the Coinbase exchange, said that institutions are still accumulating their positions at lower levels.
This data is not conclusive and does not provide a clear picture of the superiority of buyers or sellers. With these interpretations, we study the charts of the top 5 digital currencies that may perform well in the next few days.
The price of Bitcoin has broken the support of the 20-day moving average (EMA 20 – blue line in the picture) at $ 47,441, which could be a sign of a deeper price correction. The next key support is the price of a simple 50-day moving average (SMA 50 – red line in the picture) at $ 41,066. The price has not been closed below this level since October 9 (October 18). Therefore, this support has a high credibility.
Buyers are likely to strongly defend the key support of the 50-day moving average (SMA 50 – red line in the picture). The price jump from this support upwards and moving above the 20-day moving average indicates that the bullish sentiment of the market remains intact and the view of traders entering the market is falling.
However, the horizontal slope of the moving averages and the relative strength index (RSI) below its mid-range warn of a decline in buyers’ dominance in the market. If market bears push prices below the simple 50-day moving average, supply will outstrip demand and traders will quickly save on their trading profits. This could eventually lead to a price drop of up to $ 38,000. Failure of the price below this support will have a significant negative impact on the price, and subsequent price support will be considered in the downtrend, such as $ 32,000 and below $ 28,850.
The downward slope of the 20-day moving average in the four-hour time frame and the relative strength index (RSI) in its negative area indicate the relative superiority of sellers.
Given that the price has jumped close to this average, market cows will try to drive the price above the 20-day moving average. If successful in this, it indicates the flow of aggressive accumulation in the hands of these people. Price may also move up to a simple 50-day moving average above $ 52,000.
On the other hand, in case of breaking the support of $ 41,959.63, a deeper price correction will be required.
Bainance Coin (BNB)
Binance coin price has entered the corrected phase since February 20 (March 2). This move indicates the trading of stock profits after the upward movement of prices on February 19 (March 1). But the rate of price decline has been gradual since February 25 (March 27). This shows that traders are not afraid.
The price is currently trading below the 20-day moving average (EMA 20 – blue line in the picture) at $ 194. At this level, buyers are likely to re-enter. Given that prices have jumped from this support and are trying to stabilize above the downtrend line, there is a possibility that short-term buyers will re-enter the market, which could move the price up to $ 280 and above it up to $ 300. Give.
The slope of the 20-day moving average is horizontal and the Relative Strength Index (RSI) is at the top of its mid-range. This shows the balance between supply and demand. However, if sellers push the price below the 20-day moving average, it can be said that supply has outpaced demand. Under such circumstances, there is a possibility of price correction up to $ 167.3691 and below it up to $ 118.
The four-hour chart shows the formation of a downward triangle pattern in price. If the price breaks and stabilizes below the $ 189 level, it can be said that the price ceiling has been approved and it can be lowered to $ 118.
Given that buyers have defended $ 189 support, this indicates that positive market sentiment remains intact, as buyers are gaining traction as key prices fall. A break (breakout) of the price above the downtrend line will reject the price fall scenario and has the potential to raise the price up to $ 280.
Polkadot prices are correcting during their uptrend. The long wick of the price candle on February 23 and 26 (March 5 and 8) shows the buyers’ defense against the 20-day moving average at $ 30.49. On the other hand, the high wick of the price candle after the jump on February 27 (March 29) warns of a decrease in demand at higher levels.
The slope of the 20-day moving average (EMA 20 – blue line in the picture) is horizontal and the Relative Strength Index (RSI) is down to its mid-range. These factors indicate a weakening of the upward momentum of the price. However, during the recent uptrend, the price has been well supported in the 20-day moving average.
If the price jumps above the 20-day moving average and is driven up by buyers above the level of $ 35.6618. The historic price ceiling of $ 42,2848 is likely to be seen again. Breakout price above this resistance can drive it up to $ 50.
This uptrend will be eliminated with the price falling below the 20-day moving average and the 61.8% Fibonacci retracement level at $ 25.7817. Under such circumstances, the price is likely to fall further to the simple 50-day moving average at $ 22.33.
The four-hour chart shows the price fluctuation in a symmetrical triangle. If traders push the price below the bottom of the pattern, it is likely to fall to $ 25.7817 and the pattern target at $ 18.70.
The 20-day moving average downtrend and the relative strength index (RSI) in its negative area indicate the sellers’ dominance in the short term, but if the price jumps up from the current levels, buyers will try to push the price above the triangle pattern. کرد. If successful, there is a possibility that the price will move upwards to $ 42,2848.
Buyers on May 26 supported the price of Nem in support of the 20-day moving average (EMA 20 – blue line in the picture) at $ 0.475. This indicates that market sentiment remains positive and traders are entering a downturn. Buyers in the current situation are trying to continue the upward trend in prices.
The uptrend of moving averages and the placement of the Relative Strength Index (RSI) above the level of 63 indicate the superiority of buyers in the market. If buyers push the price above $ 0.5051, the price is likely to rise to $ 0.7637. Breaking the price above this resistance will open the way for growth to $ 0.9607.
On the other hand, if the price moves down from the level of $ 0.5051, there will be a possibility of limited price fluctuations before the resumption of the uptrend for a few days. Breakout and price stabilization below the 20-day moving average warn of a deeper price correction.
The four-hour chart shows the price moving out of the range of $ 0.439 to $ 0.63. The slope of both moving averages is gradually increasing and the Relative Strength Index (RSI) is above its mid-range. This indicates a slight advantage of buyers in the market.
If the bulls of the market manage to stabilize the price above the level of $ 0.63, it is likely to continue to grow up to $ 0.763 and above it to $ 0.821. On the other hand, if the price falls below the moving average, it is likely to fall to the support of $ 0.439. In case of violation of this support, there is a possibility of extending the correction to $ 0.346 and below it to $ 0.277.
The price of Iota has entered a correction phase after moving to the level of $ 1,554775 on February 19 (March 1). Despite the rapid return of the price, the positive thing is that buyers have successfully defended the 20-day moving average (EMA 20 – blue line in the picture) at $ 1.09 over the past few days.
The 20-day moving average is horizontal and the Relative Strength Index (RSI) is fluctuating above its mid-range. The combination of these factors shows the balance between supply and demand, and over the past few days, the consolidation of the superiority of each of these two groups has also failed. This balance will rotate in favor of buyers by moving and stabilizing the price above the resistance of $ 1.30. Under such circumstances, it is likely to grow to $ 1,55775.
On the other hand, if traders push the price below $ 0.90, it will be possible to continue the fall to the simple 50-day moving average (SMA 50 – red line in the picture) at $ 0.74.
The four-hour price chart shows the formation of a symmetrical triangle pattern, which is often categorized as a continuous pattern. The slope of both moving averages is gradually turning downwards and the relative strength index (RSI) is in its negative area. These factors show the superiority of sellers.
The price has moved below the bottom of the pattern but buyers are trying to get it back into the pattern. If successful, the move would signal lower levels of purchasing power. Buyers will gain a foothold in the market by stabilizing the price above the pattern. However, if the price moves down from the current levels, a deeper price correction warning will be issued.