It was a wild week for Bitcoin BTC $67,986, which rose to a new all-time high of $73,777 but then quickly gave back all its gains and dropped near $64,500. As of publication time, Bitcoin is on track to end the week down marginally by about 1% over the previous week’s close.
Analysts anticipate a shallow correction as they believe lower levels will attract solid buying from the spot Bitcoin exchange-traded fund investors. Thomas Fahrer, CEO of crypto-focused reviews portal Apollo, said on X that the fall is a “Bear Trap.”
The strength in the rebound will give a better idea of whether the correction is over or not. A weak recovery indicates continued selling pressure from the bears. That increases the possibility of a deeper pullback. On the other hand, a strong bounce will indicate aggressive buying at lower levels and enhance the prospects of the resumption of the uptrend.
Will Bitcoin’s correction stall, starting a recovery in select altcoins? Let’s look at the top 5 cryptocurrencies that look strong on the charts.
Bitcoin price analysis
Bitcoin corrected sharply from $73,777 on March 14 and broke below the support line of the ascending channel pattern on March 16.
The bulls are trying to stall the decline at the 20-day exponential moving average ($65,564), but they are likely to face resistance at the breakdown level from the channel. If the price turns down sharply from the current level, the risk of a fall increases.
If the 20-day EMA gives way, the BTC/USDT pair could drop to $59,000 and then to the 50-day simple moving average ($55,303).
If bulls want to prevent the downside, they will have to push the price back inside the channel. That will indicate solid buying at lower levels. A break and close above $73,777 will indicate the resumption of the uptrend. The pair could then rally to $80,000.
The moving averages have completed a bearish crossover but the relative strength index (RSI) has risen sharply, suggesting that the selling pressure may be reducing. The 20-EMA is likely to witness a tough battle between the bulls and the bears.
If the price turns down sharply from the 20-EMA, it will indicate that bears are selling on rallies. The pair could slide to the strong support at $64,500. If this level cracks, the pair may plunge to $59,000.
The first sign of strength will be a break and close above the channel’s support line. The pair may then climb to $70,650 and later to $72,420.
Near Protocol price analysis
Near Protocol NEAR $7.64 has pulled back in an uptrend, indicating profit-booking by short-term traders.
A positive sign in favor of the bulls is that the NEAR/USDT pair is finding support close to the 50% Fibonacci retracement level of $6.28. If the rebound is maintained, the pair is likely to retest the overhead resistance of $9.01. If this level is scaled, the uptrend may resume. The next target on the upside is $10.50.
Contrary to this assumption, if the price turns down from the overhead resistance, it will suggest that the traders are selling on rallies. The pair may then decline to the 20-day EMA ($6.18). This is an important support to watch out for because a break below it may start a deeper correction.
The bulls are trying to sustain the price above the moving averages on the 4-hour chart, indicating solid buying at lower levels. If the price stays above the 20-EMA, it will suggest that the correction may be over. The pair could then retest $9.01. A break above the overhead resistance will signal the continuation of the up move.
On the contrary, if the price dips below the 20-EMA, it will indicate strong selling on rallies. The pair may then drop to the strong support at $6.50.
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