US stock markets rallied strongly this week, but Bitcoin (BTC) failed to follow suit. This means cryptocurrency investors could stay away and worry about the ongoing troubles at Silvergate Bank. These fears could see the total crypto market cap plummet to nearly $1 trillion.
Behavioral analytics platform Santiment said in a March 5 report that there had been a “major surge in bearish sentiment,” according to its social trends chart comparing bullish and bearish words. However, the firm added that “kind of an overwhelmingly bearish sentiment can lead to a nice upleg to silence the critics.”
Daily crypto market data view. Source: Coin360
Another short-term positive for the crypto markets is weakness in the US Dollar Index (DXY), which is down 0.70 over the past 7 days. This suggests that the crypto markets could attempt a recovery in the coming days. As long as bitcoin stays above $20,000, select altcoins can outperform the broader markets.
Let’s study the charts of Bitcoin and the four altcoins that show promise in the near term.
BTC/USDT
Bitcoin tumbled below the $22,800 support on March 3rd. Buyers attempted to push the price back above the breakdown level on March 5, but the long wick on the candlestick suggests the bears are attempting to sink $22,800 into resistance.
BTC/USDT daily chart. Source: TradingView
The 20-day exponential moving average ($23,159) has started turning down and the relative strength index (RSI) is below 44, suggesting that the bears are trying to strengthen their position. Sellers will attempt to sink the price below the $21,480 support. If they succeed, the BTC/USDT pair could retest the key $20,000 support.
If bulls want to prevent the downside move, they need to push the price above the 20-day EMA quickly. Such a move suggests aggressive buying at lower levels. The pair could then rally to $24,000 and recover to $25,250 thereafter. A break above this resistance will indicate a possible trend reversal.
BTC/USDT 4 hour chart. Source: TradingView
The 4-hour chart’s moving averages are turning down and the RSI is near 39. This indicates that the bears have the upper hand. If the price turns down from the 20-EMA and falls below $21,971, the pair could retest the support at $21,480.
If bulls instead propel the price above the 20-EMA, it will indicate that the bears may lose their footing. The pair could then scale to the 50 simple moving average. This is an important level for the bears to defend as a break above it could open the gates for a rally to $24,000.
EOS/USDT
EOS (EOS) broke above the vital $1.26 resistance on March 3, but the bulls failed to hold the higher levels. On a positive note, however, the price has not broken below the 20-day EMA ($1.17).
EOS/USDT daily chart. Source: TradingView
The gradually rising moving averages and the RSI in the positive territory indicate an advantage for the bulls. The EOS/USDT pair has formed a rounding bottom pattern that will complete on a break and close above the $1.26-$1.34 resistance zone. This reversal setup has a target of $1.74.
The key support to watch on the downside is the 50-day SMA ($1.10). Buyers have not allowed the price to break below this support since Jan 8, so a break below it could accelerate selling. The next support on the downside is $1 and then $0.93.
EOS/USDT 4 hour chart. Source: TradingView
The bears have pulled the price below the 20-EMA, but on a small positive note, the bulls have not allowed the pair to slide down to the 50-SMA. This suggests that lower levels will continue to attract buyers. If the price scales above the 20-EMA, the bulls will make another attempt to scale the $1.26 barrier. If they do, the pair could rally to $1.34.
This bullish view could be invalidated in the near term if the price turns down and falls below the 50-SMA. That could extend the decline to $1.11.
STX/USDT
Stacks (STX) rallied sharply from $0.30 on February 17 to $1.04 on March 1, up 246% in a short period of time. Typically, vertical rallies are followed by sharp declines, and that’s exactly what happened.
STX/USDT daily chart. Source: TradingView
The STX/USDT pair plummeted to the 20-day EMA ($0.69) where it finds buying support. The 50% Fibonacci retracement level of $0.67 is also nearby, so the bulls will try to protect the level vigorously. On the upside, the bears will attempt to sell the rallies in the $0.83-$0.91 zone.
If the price turns down from this overhead zone, sellers will try again to deepen the correction. If $0.67 breaks, the next support lies at the 61.8% retracement level at $0.58.
Contrary to this assumption, if buyers push the price above $0.91, the pair could rally to $1.04. A break above this level will indicate a possible resumption of the uptrend. The pair could then rally to $1.43.
STX/USDT 4 hour chart. Source: TradingView
The 4-hour chart shows that the 20-EMA is sloping down and the RSI is in the negative territory, indicating that the bears have a slight advantage. Sellers are likely to defend the moving averages during pullbacks. They will try to hold their position and sink the price to $0.65 and then $0.56. The bulls will attempt to vigorously defend this support zone.
The first sign of strength will be a break and close above the 50-SMA. The pair could then rally to $0.94 and later to $1.04.
Related: Binance recommends P2P as Ukraine suspends use of hryvnia on crypto exchanges
IMX/USDT
ImmutableX (IMX) rebounded from the 50-day SMA ($0.88) on March 3 and closed above the 20-day EMA ($1), indicating solid demand at lower levels.
IMX/USDT daily chart. Source: TradingView
The IMX/USDT pair could rally to $1.12 where the bears will again try to halt the recovery. If buyers pierce their way, the pair could accelerate towards the stiff overhead resistance at $1.30. This is a crucial level to watch as a break and close above it can signal the start of a new uptrend. The pair could then rally to $1.85.
In contrast, if the price turns down from the current levels or $1.12, it will indicate that the bears are not giving up yet. The sellers will then try again to push the pair below the 50-day SMA and gain the upper hand. If they succeed, the pair could drop to $0.63.
IMX/USDT 4 hour chart. Source: TradingView
The 4-hour chart shows the price fluctuating between $0.92 and $1.12. Typically, traders buy near support and sell near resistance in a range. The price movement within the range could be random and volatile.
When the price surges above the resistance, it indicates that the bulls have overpowered the bears. The pair could then rally towards $1.30. On the contrary, if bears sink the price below $0.92, the pair could turn negative in the near term. Support on the downside is $0.83 and next is $0.73.
MKR/USDT
After a short-term pullback, Maker (MKR) is attempting to continue its bullish move. This suggests that sentiment remains positive and traders are viewing the dips as a buying opportunity.
MKR/USDT daily chart. Source: TradingView
The rising moving averages and the RSI in the positive territory indicate that the path of least resistance is up. If buyers sustain the price above $963, the MKR/USDT pair might start its journey into the $1,150-$1,170 resistance zone.
If bears want to halt the uptrend, they need to drag the price below the 20-day EMA ($807). If they succeed, stops can be hit by several short-term traders. The pair could then drop to the 50-day SMA ($731).
MKR/USDT 4 hour chart. Source: TradingView
The pair has been trading between $832 and $963 for some time but the bulls are attempting to push the price above the range. The 20-EMA has emerged and the RSI is floating in the positive territory, suggesting that the bulls are in charge.
If the price sustains above $963, the pair could attempt a rally to the $1,094 target. On the other hand, if the price falls sharply below $963, it will suggest that the breakout may have been a bull trap. That could extend the consolidation for a while.
The views, thoughts, and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain any investment advice or recommendation. Every investment and trading move involves risk and readers should do their own research when making a decision.
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