The Bitcoin market appears to be encountering initial instances of profit-taking, yet efforts to depress its value below $69,000 are proving problematic, suggesting interest in purchasing at these diminished prices.
The rapid ascent of Bitcoin hints at potential short-term retractions, a factor that might explain the modest inflow of $132 million into Bitcoin spot exchange-traded funds (ETFs) as of March 14. This decrease in inflow may trigger a correction period, especially considering the recent surge in Bitcoin’s value, which substantial investments in its ETFs have significantly supported.
Regarding the extent of a potential downturn for Bitcoin, historical patterns observed during past halving events indicate a possible decline of around 40%, as mentioned in a post on X (previously known as Twitter) by the trader known under the pseudonym Bags. Should these patterns repeat, Bitcoin’s value could see a reduction to approximately $45,500.
Corrections are a part of every bull market. A positive sign during the current pullback is that it is mainly due to profit-booking on hedges and has not led to “panic shorting yet,” according to famous trader Skew.
Could the correction in Bitcoin and altcoins deepen, or will the price rebound from the current levels? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin (BTC) Market Analysis
The Bitcoin market witnessed profit booking at $73,777 on March 14, but the bulls purchased the dip, as seen from the long tail on the candlestick.
However, the failure to build upon the momentum on March 15 attracted strong selling by the short-term traders. The price has reached the support line of the ascending channel pattern, which is a significant level to watch out for.
If the price plummets below the channel and the 20-day exponential moving average ($65,195), it will indicate the start of a corrective phase. The BTC/USDT pair could slide to $59,000 and, after that, to the 50-day simple moving average ($54,291).
Conversely, if the price bounces off the support line, it suggests that the pair may remain inside the channel for some more time. The bulls will again try to push the price above the overhead resistance at $73,777.
Ether (ETH) Market Analysis
Ether’s upmove stalled near $4,000, tempting short-term traders to book profits. The long tail on the March 14 candlestick shows the bulls tried to flip the $3,600 level into support, but the fall on March 15 shows that the bears have kept up the pressure.
The bulls and bears will likely witness a tough battle near $3,600. If the price rebounds off this support, the bulls will again try to push the ETH/USDT pair to $4,000. The bears are expected to defend this level vigorously.
On the downside, the bears will try to yank the price below $3,600. If they do that, the selling could accelerate, and the ETH/USDT pair could slump to $3,200 and later to the 50-day SMA ($2,997). The greater the fall, the longer it will take for the pair to resume the uptrend.
BNB Market Analysis
BNB has pulled back in a strong uptrend, indicating that the traders are booking profits after a sharp rally.
However, the long tail on the March 15 candlestick shows that the bulls are not ready to give up and are buying at the 38.2% Fibonacci retracement level of $527.50.
A shallow pullback is a positive sign, showing the bulls are not waiting for a deeper correction to enter. That increases the possibility of a break above $633. The pair may climb to the $670 to $692 resistance zone.
Contrary to this assumption, if the price turns down from the current level and breaks below $527, it will signal that every rally is being sold. The BNB/USDT pair may tumble to the 20-day EMA ($485).
Solana (SOL) Price Analysis
Solana has been in a strong uptrend for the past few days, indicating solid demand at higher levels.
The up move has pushed the RSI deep into the overbought territory, suggesting that the SOL/USDT pair may have run up too fast in a short time. That could start a correction, pulling the pair to the 20-day EMA ($142).
If the price rebounds off the 20-day EMA, it will suggest that sentiment remains positive and traders are buying on dips. That may enhance the prospects of a rally to $205. However, this optimistic view will be negated on a break below the 20-day EMA. The pair may then slump to the breakout level at $126.
XRP Price Analysis
XRP turned down from $0.74 on March 12, indicating that the bears fiercely defend the level.
The bulls tried to flip $0.67 into support on March 13, but the bears had other plans. They continued selling and pulled the price below the $0.67 level on March 14.
The selling increased further on March 15, and the XRP/USDT pair broke below the 20-day EMA ($0.62). This suggests that the pair may consolidate inside an extensive range between $0.50 and $0.74 for some time. A break and close above $0.74 will signal the start of a new uptrend toward $1.02.
Cardano (ADA) Price Analysis
The bulls tried to kick Cardano above the overhead resistance of $0.80 on March 14, but the long wick on the candlestick shows selling at higher levels.
The price turned down sharply and dipped to the breakout level of $0.68 on March 15. If bears sink the price below $0.68, it will signal the start of a deeper correction toward the 50-day SMA ($0.61).
Alternatively, if the price rebounds off $0.68, it will suggest that the bulls continue to buy near intense support levels. The ADA/USDT pair could swing between $0.68 and $0.80 for a while. A break above $0.80 could launch the pair to $0.92.
Dogecoin (DOGE) Price Analysis
Dogecoin rose above the $0.18 resistance on March 14, but the long wick on the candlestick shows selling at higher levels.
The price dropped sharply and reached the 20-day EMA ($0.15) on March 15. This suggests the DOGE/USDT pair may remain stuck inside the range for several more days. A break and close below $0.15 will tilt the advantage favouring the Bears. The pair could then tumble toward $0.12.
Contrarily, a rally above $0.18 will suggest that the bulls have absorbed the supply. That will open the doors for a rally to $0.24 and $0.30.
Avalanche (AVAX) Price Analysis
On March 14, the Avalanche witnessed a large range day with a long wick and a long tail, indicating indecision between the bulls and the bears.
The bears tried to strengthen their position on March 15, but the long tail on the candlestick showed solid buying near the breakout level of $50. This suggests that the bulls are trying to flip $50 into support. If buyers shove the price above $59, the AVAX/USDT pair could resume its uptrend to $87.
Bears must maintain the price below the 20-day EMA if they want to prevent the upside. Otherwise, the pair could sink to the 50-day SMA ($40).
Shiba Inu (SHIB) Price Analysis
Shiba Inu tumbled below the $0.000029 support on March 15, indicating that the bears are trying to establish supremacy.
The bulls are trying to defend the 20-day EMA ($0.000027), but the recovery is expected to face selling at the downtrend line. If the price turns lower from the downtrend line, it will increase the likelihood of a slide to the 61.8% Fibonacci retracement level of $0.000023 and then $0.000019.
Conversely, if the price turns up and breaks above the downtrend line, it will suggest that the markets have rejected the lower levels. The SHIB/USDT pair could rally to the overhead resistance of $0.000039.
Polkadot (DOT) Price Analysis
Polkadot turned down from $11.88 on March 14, and the selling picked up momentum on March 15.
The negative divergence on the RSI suggests that the bullish momentum is waning. That increases the risk of a drop below the 20-day EMA ($9.93) and the breakout level of $9.59. If that happens, the DOT/USDT pair may start a deeper pullback. The pair could then decline to the 50-day SMA ($8.23).
On the other hand, if the price rebounds strongly off the 20-day EMA, the bulls will again try to push it to $11.88.
