Market Overview: Price Analysis of Cryptocurrency and Indices as of March 17
Bitcoin maintains a floor above $80,000 despite resistance at $86,000; cryptocurrency ETPs face ongoing outflows totaling $6.4 billion over five weeks. The S&P 500 Index signals potential recovery amidst bearish pressures, while the US Dollar Index struggles for stability. Altcoins exhibit varying degrees of resilience and selling pressure, with critical support levels to watch.
On March 17, Bitcoin (BTC) has maintained its position above the $80,000 mark since March 11, showing bullish sentiment among investors despite a struggle to break through the $86,000 resistance point. However, CoinShares reports $1.7 billion in outflows from cryptocurrency exchange-traded products (ETPs) last week, totaling $6.4 billion over five weeks and marking a 17-day streak of outflows.
Despite these trends, long-term investors display resilience. ShayanBTC from CryptoQuant noted an accumulation pattern among those who purchased Bitcoin between three to six months ago. Historically, such behavior has indicated potential market bottoms and could signal the start of new upward trends.
In terms of the S&P 500 Index (SPX), it is currently in a corrective phase with a decline to 5,504 observed on March 13. This has positioned the relative strength index (RSI) in the oversold territory, potentially indicating a relief rally. The primary resistance zone ranges from 5,670 to 5,773, where sellers aim to halt any recovery, with traders potentially responding negatively to rallies.
Similarly, the US Dollar Index (DXY) shows weakness, struggling to rebound from its support at 103.37, with sellers aiming to push it lower. A fall below this level could lead to further declines. Conversely, should the index recover and surpass 104, market sentiment may shift, leading to a rise toward the 20-day exponential moving average (EMA) at 105.
The Bitcoin market is also attempting to establish a higher low, poised to breach the 200-day simple moving average ($84,112). If traders push the price above the 20-day EMA ($85,808), the BTC/USDT trading pair could potentially ascend to the 50-day simple moving average ($92,621). However, a significant downturn from resistance may revert the price toward $80,000.
Ether (ETH) is currently trading within the range of $1,963 and $1,821, reflecting passive buyer interest. Should the price breach this support zone, the ETH/USDT pair may drop to a significant support level at $1,550. Conversely, a price rally that surpasses the 20-day EMA ($2,107) could lead to a rise towards the next resistance of $2,514.
XRP has faced resistance, pulling back from the 50-day SMA ($2.51), with the XRP/USDT pair potentially moving sideways between $2 and the moving average. A move above the 50-day SMA could set the stage for a rally toward $3, while a decline below $2 would suggest further bearish sentiment.
BNB’s recent uptick from the 20-day EMA ($598) to above the 50-day SMA ($620) signifies correction closure. With descending resistance, BNB could rally towards $686, contingent upon sustaining trading above the 50-day SMA. A fall below the 20-day EMA would suggest increased bearish control.
Solana (SOL) has retraced from the 20-day EMA ($139), indicating strong seller resistance. The SOL/USDT could decline toward $120 or $110, where buying support is anticipated. A rebound in price could prompt attempts to surpass the 20-day EMA, leading to higher trading potential.
Additionally, Dogecoin (DOGE) is approaching the 20-day EMA at $0.19, which remains a critical resistance point. A drop from this level could threaten support at $0.14, while a breakthrough could lead to levels as high as $0.29, signaling buyer control.
Cardano (ADA) has hovered below the 20-day EMA, yet the support line has held steady, suggesting diminishing selling pressure. A rally above the moving averages could lead the ADA/USDT toward $1.02, but failure to do so could initiate a drop beneath the uptrend line toward $0.50.
Lastly, Pi (PI) is also testing $1.23 support, with potential bullish rebounds leading to targets at $1.80 where selling may intensify. A downward movement from $1.80 would suggest market range stabilization, while a breach below $1.23 could amplify bearish trends to $0.72.
The analysis highlights the current state of various cryptocurrencies, with Bitcoin and altcoins facing significant resistance levels amidst ongoing market corrections. Despite outflows in cryptocurrency ETPs, indicators of accumulation suggest resilience among long-term investors. The S&P 500 Index and US Dollar Index reflect broader market corrections, while specific cryptocurrencies exhibit divergent trends based on support and resistance levels. Investors are advised to proceed with caution given the prevailing risks and market dynamics.
Original Source: cointelegraph.com
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