Price analysis 3/16: BTC, ETH, BNB, XRP, LUNA, SOL, ADA, AVAX, DOT, DOGE
Bitcoin (BTC) is witnessing a see-saw battle near $40,000 with both the bulls and the bears trying to gain the upper hand. The volatility could remain high as the markets await the United States Federal Reserve’s policy decision due on March 16.
Analyst Willy Woo suggests that Bitcoin could witness a capitulation event based on cost basis, a metric that indicates the transfer of Bitcoin from inexperienced to experienced traders. Such sharp declines usually suggest the formation of market bottoms.
However, Glassnode believes that a capitulation has been avoided because the sell-offs have been absorbed by a relatively strong market. Although 82% of the short-term holders' coins are in loss, Glassnode considers this to be a late-stage bear market behavior where investors hold their coins until they turn profitable.
Could the Fed’s policy decision start a trending move in Bitcoin and altcoins? Let’s analyze the charts of the top-10 cryptocurrencies to find out.
Bitcoin turned down from the moving averages on March 15 but the long tail on the candlestick indicates strong demand at lower levels. The bulls continued their buying and have pushed the price above the 50-day simple moving average ($40,151).
If bulls sustain the price above the 50-day SMA, the BTC/USDT pair could rally to the overhead zone between $45,400 and the resistance line of the ascending channel. The bears are expected to mount a strong defense in this zone.
If the price turns down from the overhead zone, the pair could extend its stay inside the channel for a few more days. The flat moving averages and the relative strength index (RSI) near the midpoint also suggest range-bound action is likely in the short term.
Contrary to this assumption, if the price turns
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