Price analysis 3/6: BTC, ETH, BNB, SOL, XRP, ADA, DOGE, SHIB, AVAX, DOT

Bitcoin (BTC) Hits New High Above $69,200 Before Succumbing to Massive Selling

On March 5, Bitcoin (BTC) reached a new all-time high above $69,200, but then experienced a sharp decline, dropping below $60,000. This sudden drop resulted in $1.17 billion in cross-crypto liquidations, according to Coinglass.

Despite this dip, investors showed a strong interest in purchasing spot Bitcoin exchange-traded funds. Data from Farside Investors reveals a net inflow of $648.9 million into Bitcoin ETFs, with BlackRock’s iShares Bitcoin Trust (IBIT) ETF recording its highest inflow of $788 million. This indicates a strong demand for Bitcoin, and if sustained, corrections are likely to be minimal.

During times of rapid market growth, traders may become overly confident and take on excessive leverage. While this may lead to quick profits, it can also be detrimental to their portfolio if they are not able to cut losses early. Therefore, it is important for traders to remain cautious and adhere to trading rules when using leverage.

Will Bitcoin continue its upward trend, pulling altcoins along with it, or will the cryptocurrency market enter a consolidation phase? Let’s examine the charts of the top 10 cryptocurrencies to find out.

Bitcoin price analysis

The price of Bitcoin has been on a steady rise for the past few days, with traders taking advantage of dips to buy during the upward trend. This was evident on March 5 when the bulls aggressively bought the drop to the 20-day EMA ($58,131), indicating a strong demand at lower levels. Buyers are now pushing for a continuation of the uptrend by attempting to break above the $69,000 mark. If successful, the BTC/USDT pair could see a surge towards $76,000 and potentially reach $80,000.

The clock is ticking for the bears as they must defend the $69,000 level and push the price below the 20-day EMA to initiate a correction in the near future. This could lead to long liquidation and a sharp drop towards the 50-day SMA ($49,107).

Ether price analysis

On March 4, Ether (ETH) surged above the $3,600 resistance level, but the next day saw a bearish turn of events.

The strong selling pressure caused a drop to the 20-day EMA ($3,233), where the bulls quickly stepped in to halt the decline. This indicates a positive sentiment, with buyers defending the 20-day EMA.

The bulls are now pushing to maintain the price above $3,822, which could trigger a rally towards $4,000 and eventually $4,150. However, if the bears want to prevent this upward movement, they will need to push the price below the breakout level of $3,600. In that case, the 20-day EMA may come under threat of breaking down.

BNB price analysis

The current state of BNB (BNB) shows a decline from the resistance level of $427 on March 5, followed by a drop below the 20-day EMA ($387). However, the bears were unable to maintain the lower levels.

The bulls have taken advantage of the dip below the 20-day EMA, as evidenced by the long tail on the candlestick. They are now working to solidify their position by keeping the price above $427 on March 6. If they succeed, the BNB/USDT pair could potentially surge to $460.

On the other hand, if the price fails to hold above $427, it will indicate that the bears are fiercely defending this level. This would increase the chances of a decline towards the 50-day SMA ($341).

Solana price analysis

On March 5, Solana (SOL) encountered resistance at $143 and dropped to the 50-day SMA ($105).

However, the long tail on the day’s candlestick indicates the bulls are fiercely defending the 50-day SMA. They have now pushed the price above $126 and will make another attempt to break through the barrier at $143. If successful, the SOL/USDT pair could embark on its next upward move towards $158.

Alternatively, if the price retreats from its current level or the overhead resistance, it will signal that the bears are not ready to give up. This could lead to another slide towards the 50-day SMA.

XRP analysis: A look at the current state of the crypto market

The recent dip in XRP (XRP) from $0.67 on March 5 has sparked a fierce battle between the bulls and bears.

Despite this, the 50-day SMA ($0.55) has provided strong support, indicating that buyers are still active in the market. As the XRP/USDT pair makes another attempt to break through the resistance at $0.67, there is potential for a bullish rally towards $0.74.

However, if the bears successfully defend the $0.67 level, it could lead to a period of consolidation between the 50-day SMA and $0.67. This range-bound action may continue for a few days before the market makes its next move.

Cardano market analysis

On March 4, the price of Cardano (ADA) reached $0.80 before experiencing a sharp decline and dropping to the 50-day SMA ($0.56) on March 5.

However, the bulls quickly stepped in and bought the dip near the 50-day SMA, leading to a recovery and a close above the key resistance level of $0.68. This indicates a bullish sentiment among traders. If the price continues to rise, the ADA/USDT pair could potentially reach the next resistance at $0.80.

This positive outlook will be invalidated if the price turns downwards and closes below the 20-day EMA ($0.65). In such a scenario, the pair could potentially drop to the 50-day SMA.

Dogecoin market analysis

Dogecoin (DOGE) surpassed the $0.16 resistance level on March 4, but was met with profit-taking on March 5, suggesting that selling pressure remains strong at higher levels.

The bulls are struggling to keep the price above $0.16, indicating that there may be further selling on rallies. If the price falls from its current level or the overhead resistance, the DOGE/USDT pair could drop to the 20-day EMA ($0.12), where buyers are likely to enter the market.

On the other hand, if buyers can maintain the price above $0.16, the pair could gradually retest its recent high at $0.20. A successful break and close above this level could signal the beginning of the next uptrend, potentially pushing the price towards $0.30.

Shiba Inu: A Comprehensive Price Analysis

The cryptocurrency Shiba Inu (SHIB) has been experiencing a significant uptrend in recent days. On March 5, the bulls drove the price up to $0.000045, but it was unable to sustain this level, as indicated by the long wick on the candlestick.

This led to a wave of selling, causing the price to drop to $0.000025. However, there is a minor positive sign for the bulls as the lower levels were quickly bought up, indicating strong demand during dips.

Following the volatile day, it is likely that the SHIB/USDT pair will trade within a range for the next few days. The upper and lower boundaries of this range are expected to be $0.000045 and $0.000025, respectively. Additionally, the RSI is currently showing deeply overbought conditions, suggesting a potential correction or consolidation in the near future.

Avalanche price analysis

After failing to start an uptrend following the completion of the inverse head-and-shoulders pattern, traders may have decided to dump their positions in Avalanche (AVAX) on March 5th.

The AVAX/USDT pair fell below the 50-day SMA ($37.04), but it should be noted that the bears were unable to maintain the lower levels. The market saw a strong influx of buyers, leading to a recovery and an attempt by the bulls to push the price back above the resistance at $42. However, if this level is surpassed, the bulls will likely face significant resistance around $44.

If the price manages to break and close above $44, it will be a clear indication that the bulls have regained control. This could potentially lead to a retest of the psychological resistance at $50. On the downside, the 50-day SMA and $35 remain crucial support levels to monitor.

Polkadot price analysis

The current market trend for Polkadot (DOT) shows a significant surge, reaching $10.76 on March 5. However, this increase was short-lived as profit booking ensued, leading to a long wick on the day’s candlestick.

Despite the bears’ attempt to push the price below the 20-day EMA ($8.57), buyers continue to show interest in lower levels, as evident from the long tail on the candlestick. The bulls have successfully pushed the price above the breakout level of $9.59, and if they can maintain this momentum, the DOT/USDT pair could potentially reach the overhead resistance of $10.80.

As is typical in the crypto market, high volatility is often followed by a period of low volatility. This could result in consolidation between the 20-day EMA and $10.80 for some time.

Overall, the current market trend for Polkadot shows potential for further growth, and it is worth keeping an eye on.

Categorized in:

Tagged in: