The recent banking crisis in the United States appears to have shaken some customers’ confidence in the legacy banking system.According to data from the Federal Reserve, customers withdrew nearly $100 billion in deposits in the week ending March 15.
American investor and venture capitalist Tim Draper said in a March 25 report that “founders need to consider a more diversified approach to cash management” due to excessive bank regulation and government micromanagement..As part of a contingency plan, Draper suggested companies keep “at least 6 months of short-term cash in each of two banks, a local bank and a global bank, and at least two cash payrolls in Bitcoin (BTC) or other crypto-currencies.
The shift from traditional banking to cryptocurrencies may have already begun, as evidenced by Bitcoin’s strong performance in recent days.Even after the recent rise, investors don’t seem to be in a rush to register profits in Bitcoin.However, the same cannot be said for most altcoins as they experienced a minor setback.
In the short term, traders need to be selective about which cryptocurrencies to trade.Let’s study the charts of Bitcoin and select the altcoins that could start the next leg of the upward movement.
bitcoin price analysis
Bitcoin has been hovering around the $28,000 level for the past few days.
A consolidation after a strong rally is a positive sign as it shows that traders are holding their position, expecting further upside.
The 20-day rising exponential moving average ($25,936) and the Relative Strength Index (RSI) in the positive zone suggest that the bulls remain in check.This improves the outlook for a break above $28,900.
If that happens, the BTC/USDT pair could rally to the $30,000-$32,000 resistance zone.The bears will try to defend this area with all their might because if they fail in their endeavor the pair can soar to $40,000.
Vital support on the downside is $25,250.If this level does not hold, the pair could drop to the 200-day simple moving average ($20,179).
The 4-hour chart shows that the pair has been trading in the range between $26,500 and $28,900 for some time.
The 20-EMA is flat and the RSI is just above the midpoint, indicating a balance between supply and demand.
A break above $28,900 will signal that the bulls have overpowered the bears.This will indicate the resumption of upward movement.
On the contrary, if the price breaks below $26,500, the pair may drop to $25,250 and then to $24,000.
XRP Price Analysis
XRP (XRP) climbed above the $0.43 overhead resistance on March 21st.The bears attempted to trap the aggressive bulls by pulling the price below the moving averages, but the bulls held their ground.
The buyers are trying to push the price towards the overhead resistance at $0.51.If the bulls breach this hurdle, the ETH/USDT pair could attempt a rally to $0.56.This level is likely to witness aggressive selling by the bears, but if the buyers bulldoze their way in, the next stop could be $0.80.
Another possibility is that the price drops by $0.51.During the pullback, if the bulls turn the $0.43 level into support, it will suggest that sentiment has turned positive.This will increase the likelihood of a break above $0.51.
The crucial support to watch on the downside is $0.40.
If this level gives way, the next support is $0.36.
The 4-hour chart shows that the bears are trying to defend the 61.8% Fibonacci retracement level at $0.46 and the bulls are buying the lows of the 20-EMA.This shows a balanced state between bulls and bears.
If the price holds above $0.46, it will suggest that the bulls have taken control.
The pair could then attempt a rally to $0.49 where the bears could once again mount a strong defense.
On the other hand, if the price slips below the 20-EMA, the pair may fall to $0.43 and then to $0.40.
Litecoin Price Analysis
While most major altcoins are struggling to start a recovery, Litecoin (LTC) is showing signs of strength.The 20-day EMA ($86) has started to appear and the RSI is in the positive zone, indicating an advantage for the buyers.
The LTC/USDT pair could first rise to $98 and then retest the strong overhead resistance at $106.This is an important level to watch because if it breaks down the pair can accelerate to $115 and then to $130.
Alternatively, if the price drops sharply from $106, it will suggest that the bears are active at higher levels.
The pair could then fall to the 20-day EMA.If the price bounces off this level, it will suggest that the sentiment remains positive.The bulls will then make another attempt to resume the upward move.
The first sign of weakness will be a breakout and a close below the 20-day EMA.This could open the doors for a drop to $75.
The bounce of the 20-EMA on the 4-hour chart shows that the bulls view the dips as a buying opportunity.
The bulls will try to push the price above $96 and extend the upside to the overhead resistance at $106.
On the contrary, if the price breaks below the 20-EMA, it will suggest that the bullish momentum is weakening.The pair could then descend towards the uptrend line.
This is an important level for the bulls to defend because if it breaks the pair can drop to $75.
Related: Bitcoin is 1 week away from ‘confirmation’ of new bull market – analyst
Monero Price Analysis
After trading near the moving averages for a few days, Monero (XMR) broke free and is trying to climb higher.
The 20-day EMA ($153) has started to rise and the RSI is in positive territory, indicating that the buyers have the advantage.There is minor resistance at $170, but if the bulls overcome this barrier, the XMR/USDT pair could gain momentum and rise to $187 and then to $210.
The moving averages should provide support during the pullbacks.A breakout and close below the 200-day SMA ($150) could reverse the trend in favor of the bears.The pair could then drop to $132.
The 20-EMA on the 4-hour chart is sloping and the RSI is in the positive zone, indicating that the bulls have the upper hand.The pair might reach $169 where the bulls might again face strong resistance from the bears.
However, on the downside, if the bulls do not allow the price to break below the 20-EMA, it will increase the likelihood of a rally above $169.
If that happens, the pair can climb to $180 and later to $188.
The first sign of weakness will be a breakout and a close below the 20-EMA.
This could open the doors for a possible decline in the 200-SMA.
Avalanche Price Analysis
The bulls managed to hold Avalanche (AVAX) above the moving averages, indicating that lower levels are attracting buyers.
The price has consolidated between $18.25 and the 200-day SMA ($16.05) over the past few days, but this range-bound action is unlikely to continue for long.If the buyers push the price above $18.25, the AVAX/USDT pair will attempt a rally to $22 where they could face a strong sell-off by the bears.
This positive view will be invalidated in the short term if the price drops and holds below the 200-day SMA.The pair could then slide to $15.24 and then to $14.
The bulls managed to hold the $16.25 level down, but failed to propel the pair above the resistance line.This indicates that the bears have not given up and are continuing to sell on the rallies.
The flat 20-EMA and the RSI close to the midpoint do not give a clear advantage to either buyers or sellers.
This uncertainty could tip in favor of the bulls if they clear the resistance line.The pair can then start the next leg of the recovery at $20 and later at $22.
A breakout and close below $16.25 will tip the scales in favor of the bears.
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations.Every investment and trading move involves risk, and readers should conduct their own research when making a decision..