Monday, 27 March 2023
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MATIC, HBAR, LDO and BIT gather strength as Bitcoin price rebounds

MATIC, HBAR, LDO and BIT gather strength as Bitcoin price rebounds

Bitcoin (BTC) price is trying to recover over the weekend but the current bounce lacks conviction. This suggests that dip buyers are nervous to load up before the release of January’s consumer price index data on Feb. 14 as that could boost short-term volatility. 

Although the near term is uncertain, analysts at Delphi Digital expect the United States Federal Reserve to pivot to an accommodative policy later in the year and that could be favorable for risk assets.

Crypto market data daily view. Source: Coin360

Another bullish projection came from Pantera Capital CEO Dan Morehead who said that Bitcoin’s “seventh bull cycle” may have begun. Morehead highlighted that the decline from November 2021 to November 2022 lasted 376 days and that BTC price witnessed a 77% drawdown, in line with the median downdraft of 307 days and a median drawdown of 73% seen during earlier bear markets.

The analysts seem to be turning positive on Bitcoin for the long term but the near term remains uncertain. 

Let’s study the charts of Bitcoin and select altcoins to spot the critical levels to watch out for.

BTC/USDT

Bitcoin nosedived to the strong support at $21,480 on Feb. 10. The zone between the 50-day simple moving average ($20,347) and $21,480 is likely to attract aggressive buying by the bulls.

BTC/USDT daily chart. Source: TradingView

The first hurdle on the upside is the 20-day exponential moving average ($22,347). This needs to be crossed to suggest that bulls are back in the driver’s seat. There is a minor hurdle at $22,800 but if that is scaled, the BTC/USDT pair could retest $24,255.

The bears are expected to defend the $24,255 to $25,211 zone with all their might because if this obstacle is surpassed, the pair could signal a potential trend change.

Conversely, if the price slumps below the 50-day SMA, it will suggest that bears are back in the game. The pair could then revisit the vital support zone between $18,000 and $16,000.

BTC/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the bulls are trying to start a rebound off $21,480 but are facing selling near the 20-EMA. If the price turns down from the current level and breaks below $21,480, the bears may attack the $20,000 psychological level with vigor.

The 20-EMA is flattening out and the relative strength index (RSI) is gradually rising toward the midpoint. This indicates that the short-term selling pressure may be easing.

If buyers drive the price above the 20-EMA, the pair could rise to…

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