The recent banking crisis in the United States seems to have shaken the belief of some customers in the legacy banking system. According to Federal Reserve data, customers withdrew nearly $100 billion in deposits in the week ending March 15.
American venture capital investor and entrepreneur Tim Draper said in a March 25 report that "founders should consider a more diversified cash management approach" due to overregulation of banks and micromanagement by the government. As part of a contingency planDraper suggested that companies hold "at least 6 months of short-term cash at each of two banks, one local bank and one global bank, and at least two payroll cash in Bitcoin (BTC) or other cryptocurrencies.โ
The shift from traditional banking to cryptocurrencies may already have begun, as seen by Bitcoin's strong performance in recent days. Even after the recent move up, investors do not seem to be in a hurry to take profits in Bitcoin. However, the same cannot be said for most altcoins, as they have witnessed only a minor pullback.
In the short term, traders need to be selective with cryptocurrencies to trade. Let's study the Bitcoin charts and select altcoins that can initiate the next stage of the upward move.
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, waiting for another move higher.
The rising 20-day exponential moving average ($25,936) and the RSI in the positive area suggest that the bulls remain in control. That improves the prospects for a break above $28,900.
If that happens, the BTC/USDT pair could rally to the $30,000 to $32,000 resistance zone. The bears will try to defend this area with all their might because if they fail, the pair can skyrocket to $40,000.
Life support on the downside is $25,250. If this level does not hold, the pair may drop to the 200-day simple moving average ($20,179).
The 4-hour chart shows that the pair has been trading in a range between $26,500 and $28,900 for some time. The 20-day EMA is flat and the RSI is just above the midpoint, indicating a balance between supply and demand.
A break above $28,900 will indicate that the bulls have beaten the bears. That will indicate the resumption of the upward movement. Conversely, if the price falls below $26,500, the pair can drop to $25,250 and then $24,000.
XRP Price Analysis
XPR (XRP) rose above the overhead resistance of $0.43 on March 21. The bears tried to catch 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 of $0.51. If the bulls clear this hurdle, the ETH/USDT pair could attempt a rally to $0.56. This level is likely to see aggressive selling by the bears, but if the buyers break through, the next stop may be $0.80.
Another possibility is that the price goes below $0.51. During the pullback, if the bulls flip the $0.43 level to support, it will suggest that sentiment has turned positive. That will increase the probability 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 at $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 dips to the 20-day EMA. This shows a state of equilibrium between the bulls and the bears.
If the price sustains above $0.46, it will suggest that the bulls have taken over. The pair could then try a rally to $0.49 where the bears can mount strong defense again. On the other hand, if the price breaks below the 20-day EMA, the pair can drop to $0.43, and then $0.40.
Litecoin Price Analysis
While most of the major altcoins are struggling to kick off a recovery, Litecoin (LTC) is showing signs of strength. The 20-day EMA ($86) has started to turn around and the RSI is in the positive zone, which indicates an advantage for the buyers.
The LTC/USDT pair could rally to $98 first and then retest the strong resistance above $106. This is an important level to watch because if it breaks down, the pair can accelerate to $115 and then $130.
Alternatively, if the price falls sharply from $106, it will suggest that the bears are active at higher levels. The pair could then drop to the 20 day EMA. If the price bounces off of this level, it will suggest that the sentiment remains positive. Then the bulls will make another attempt to resume the up move.
The first sign of weakness will be a break and close below the 20 day EMA. That could open the doors for a drop to $75.
The bounce off the 20 day EMA on the 4 hour chart shows that the bulls see dips as a buying opportunity. The bulls will try to push the price above $96 and extend the up move to the overhead resistance at $106.
Conversely, if the price breaks below the 20 day EMA, it will suggest that the bullish momentum is weakening. The pair could then drop to the uptrend line. This is an important level for the bulls to defend because if it is broken, the pair can drop to $75.
Related: Bitcoin Is 1 Week Away From 'Confirming' A New Bull Market: Analyst
Monero Price Analysis
After trading near the moving averages for a few days, Monero (XMR) has been freed and is trying to go higher.
The 20-day EMA ($153) has started to turn around and the RSI is in the positive territory, indicating that the buyers have the upper hand. There is minor resistance at $170, but if the bulls break through this barrier, the XMR/USDT pair could pick up momentum and rally to $187 and then $210.
The moving averages are expected to provide support during pullbacks. A break and close below the 200-day SMA ($150) could turn the tide in favor of the bears. The pair can then drop to $132.
The 20 EMA on the 4 hour chart is sloping up and the RSI is in the positive zone, indicating that the bulls have the upper hand. The pair could reach as low as $169, where the bulls may once again face stiff resistance from the bears.
However, on the downside, if the bulls do not allow the price to drop below the 20-day EMA, the probability of a rally above $169 will increase. If that happens, the pair can go up to $180 and then $188.
The first sign of weakness will be a break and close below the 20 day EMA. That could open the doors for a possible drop to the 200-SMA.
Avalanche Price Analysis
The bulls have successfully withstood Avalanche (AVAX) above the moving averages, indicating that lower levels attract buyers.
The price has been consolidating between $18.25 and the 200-day SMA ($16.05) for the past several 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 try to rally to $22, where it may face heavy selling by the bears.
This positive view will be invalidated in the short term if the price dives and sustains below the 200-day SMA. Then the pair could slide to $15.24 and then to $14.
The bulls have successfully protected the $16.25 level on the downside, but have failed to push the pair above the resistance line. This indicates that the bears have not given up and continue to sell rallies. The flat 20 day EMA and the RSI near the midpoint do not give a clear advantage to either the buyers or the sellers.
This uncertainty could tilt in favor of the bulls if they clear the resistance line. The pair can then start the next leg of the rally at $20 and then $22. A break and close below $16.25 will tilt the advantage in favor of the bears.
The views, thoughts and opinions expressed here 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 do their own research when making a decision.
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