The Latest Trends in Crypto: Bitcoin Bulls Continue to Dominate as ETFs Gain Popularity
Bitcoin (BTC) enthusiasts are showing no signs of backing down as they push the cryptocurrency past the $70,000 mark on March 11. This surge in value is a clear indication of the strong demand from traders. In fact, according to Bitwise chief investment officer Matt Hougan, professional investors are eagerly waiting for the opportunity to invest in Bitcoin exchange-traded funds (ETFs).
Despite this, the demand for Bitcoin ETFs remains high. Data from Dune shows that spot Bitcoin ETFs currently hold 4.06% of the total Bitcoin supply. If this buying trend continues, these ETFs are projected to hold 8.65% of the Bitcoin supply on an annual basis.
In a recent X post, MicroStrategy founder and chairman Michael Saylor announced the purchase of 12,000 Bitcoin at an average price of $68,477. This was made possible by the proceeds from the company’s successful $800 million convertible note offering. With this latest acquisition, MicroStrategy now holds 205,000 Bitcoin at an average price of $33,706 per Bitcoin.
Traders should closely monitor the inflows of Bitcoin ETFs, as a sustained slowdown could negatively impact sentiment and potentially lead to a market correction. So, what are the key support levels to watch out for in both Bitcoin and altcoins? Let’s take a closer look at the charts to find out.
S&P 500 Index price analysis
The S&P 500 Index has been on the rise within an ascending channel pattern for several days. However, on March 8, the price faced resistance from the channel’s upper boundary, indicating that the bears are actively defending this level.
While the upward-sloping moving averages suggest a favorable market for buyers, the negative divergence on the relative strength index (RSI) serves as a warning for a potential correction or consolidation in the near future. If the bears manage to push the price below the channel, it could result in increased selling pressure, potentially leading to a drop towards the 50-day simple moving average (4,930).
On the other hand, a rebound from the current level or the channel’s lower boundary would indicate that the market sentiment remains positive, with traders buying on minor dips. To see a significant uptrend, the bulls will need to break above the channel and push the price towards 5,350.
The U.S. Dollar Index and its price analysis
On March 1, the U.S. Dollar Index (DXY) dropped below the 20-day EMA (103), which was then defended by the bears in subsequent attempts by the bulls to push the price above it. This failure to rise above the 20-day EMA resulted in accelerated selling on March 6.
The sellers were successful in pulling the price below the 50-day SMA (103) and the neckline of the inverse head-and-shoulders pattern on March 7. With the moving averages on the verge of a bearish crossover and the RSI nearing the oversold zone, the bears are currently in control. It is likely that the index will slide to 102 and possibly even 101.
In the event of a recovery, the 20-day EMA is expected to provide resistance. However, if the index manages to rise above this level, it could be a sign that the selling pressure is decreasing. In such a scenario, the index may see a rise to 105.
Bitcoin price analysis
Bitcoin struggled to surpass the $70,000 mark over the weekend, but managed to break through on March 11, indicating strong demand from buyers.
The ascending moving averages and overbought RSI suggest that the bulls are currently in control. The BTC/USDT pair has the potential to reach $76,000 and possibly even $80,000, although this level is expected to provide significant resistance.
It’s challenging to determine a peak for an asset with such strong momentum. The first indication of weakness would be a close below the 20-day EMA ($62,443), which could trigger profit-taking from the bulls and potentially lead to a deeper pullback.
Ether price analysis
Today in the world of crypto, there is much talk about Shiba Inu and Doge, but let’s not forget about Ether (ETH). The bears attempted to bring ETH down to the breakout level of $3,600, but the long tail on the March 11 candlestick shows that buyers were aggressive at lower levels.
Now, the price has surpassed the psychological barrier of $4,000, and this could lead to a rally towards $4,372. However, if this resistance is surpassed, the ETH/USDT pair could skyrocket to $4,868.
It’s important to note that the recent sharp uptrend has pushed the RSI into deep overbought territory, which should be approached with caution. If sellers manage to push the price below the 20-day EMA ($3,505), it could signal a break in the bullish momentum and potentially start a corrective phase.
BNB price analysis
BNB (BNB) has been experiencing a strong upward trend for several days, with the momentum increasing after the price surpassed $460. This bullish movement is expected to continue, potentially reaching a resistance level at $560 in the short term. However, if buyers manage to hold above this level, the uptrend may continue towards $617.
On the downside, the key support levels are $460 and the 20-day EMA ($433). A drop below the 20-day EMA would suggest a potential end to the uptrend in the short term.
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XRP market analysis
Despite repeated attempts by the bears to keep XRP (XRP) below the 20-day EMA ($0.60), buyers stepped in on March 11.
The bulls successfully pushed the price above the immediate resistance at $0.67, indicating strong buying interest at lower levels. The current momentum may lead to a challenge of the significant resistance at $0.74, which could mark the beginning of a new uptrend. If this level is broken, the XRP/USDT pair could potentially reach $0.85 and even $0.95.
On the other hand, a rejection at $0.74 would suggest that the bears are still active at higher levels. This could lead to a drop towards the strong support at $0.67.
Solana price analysis
The bears are attempting to initiate a correction in Solana (SOL), but the bulls are not backing down. The shallow pullback indicates a lack of sellers.
Buyers will capitalize on this opportunity and strive to strengthen their position by pushing the price above $153. If successful, the SOL/USDT pair could resume its upward trend and potentially reach $184.
To prevent further upside, the bears must swiftly push the price below the breakout level of $126. This could trigger more selling and potentially lead to a drop towards the 50-day SMA ($110).
Cardano: A Closer Look at the Current Market
On March 11, the price of Cardano (ADA) dropped to $0.68, reaching the breakout level. However, the long tail on the candlestick indicates strong buying activity at lower levels.
With the 20-day EMA ($0.68) showing an upward trend and the RSI in positive territory, it is likely that the market will continue to move in an upward direction. The next target for buyers is the March 4 high of $0.80, with the potential for further gains to $0.90 and even $1.25.
If the price were to turn downwards and break below $0.68, this positive outlook would be invalidated, indicating a possible comeback by the bears. In this scenario, the pair could see a drop to the 50-day SMA ($0.59).
Dogecoin market analysis
The ongoing battle between buyers and sellers has kept Dogecoin (DOGE) above the breakout level of $0.16.
The bullish momentum, reflected by the rising 20-day EMA ($0.14) and the overbought RSI, indicates a potential advantage for buyers. If they manage to push and maintain the price above $0.000018, the DOGE/USDT pair could retest $0.21 and potentially surge to $0.26.
On the other hand, a break below $0.16 would suggest a loss of bullish control. This could lead to a drop towards the critical 20-day EMA, which remains a key support level to monitor. A breach of this level could trigger a deeper correction towards $0.12.
Shiba Inu crypto analysis
Shiba Inu (SHIB) has been consolidating within a wide range of $0.000029 to $0.000039 following a significant surge.
This range-bound movement is correcting the heavily overbought conditions on the RSI, indicating a cooling down of the market. The SHIB/USDT pair is likely to continue trading within this range for a while.
If the price breaks below the range, it could potentially drop to the 20-day EMA ($0.000024), a critical level to monitor. A break below this level would give the upper hand to the bears.
On the other hand, a break above $0.000039 would indicate a return of the bulls. This could lead to a rise towards $0.000046, and if that level is surpassed, the rally could extend to $0.000065.
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