Bitcoin is trying to sustain above $20,000 and if successful, ETH, MATIC, TON and OKB could see a strong recovery.
Traders dumped risky assets following the crisis and collapse of Silicon Valley Bank (SVB). The S&P 500 plunged 4.55%, while Bitcoin (BTC) is down around 9% for the week.
The collapse of SVB led to a crisis in the cryptocurrency space, with USD Coin (USDC) losing its peg to the U.S. dollar, as it was reported that $3.3 billion of Circle’s $40 billion USDC reserves were held by SVB. After trading close to $0.87 on March 11, USDC has climbed above $0.96 at press time.
SVB’s collapse adds to near-term uncertainty, with investors watching for any signs of contagion to other regional U.S. banks
Daily view of cryptocurrency market data. Source: Coin360
In uncertain times, it’s best to stay on the sidelines. However, if there is no domino effect following the SVB crash, some cryptocurrencies may start to recover. The cryptocurrencies selected in the article are all trading above the 200-day simple moving average, a key level that long-term investors watch to determine whether an asset is in a bull or bear phase.
Let’s examine the charts of Bitcoin and four altcoins that could outperform if the sector sees a recovery in the coming days.
Bitcoin has corrected back to the 200-day EMA ($20,389). Buyers are expected to defend the level with all their might, as a break below it could intensify the sell-off.
BTC/USDT daily chart. Source: TradingView
On the way up, the 20-day exponential moving average ($22,042) could act as a major hurdle. If the price falls sharply from the 20-day EMA, the BTC/USDT pair may retest the support of the 200-day EMA. If this level breaks down, the pair could slide to $18,400 and then to $16,300.
If the bulls want to arrest the decline, they will have to push the price above the 20-day EMA. If they manage to do so, the pair could gain momentum and surge towards the overhead resistance at $25,250.
BTC/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the bulls are attempting to rebound from $19,550, but the bears are aggressively defending the 20-EMA. If the price turns down from the current levels, the bears will make another attempt to break the pair below $19,950. If they succeed, the pair could drop to $18,400.
Conversely, if the price recovers and breaks above the 20-EMA, it would indicate that short-term selling pressure may be easing. This could start a rally towards $21,480 where the bears will once again pose a formidable challenge. If this level is extended, the pair could reach $22,800.
Ether (ETH) fell below the 200-day moving average ($1,421) on March 10, but the long tail on the day’s candlesticks showed strong buying at lower levels.
ETH/USDT daily chart. Source: TradingView
The recovery faces resistance around $1,461. If the price turns down from the current levels and hits the 200-day SMA, it will indicate that the bears are selling on a minor rally. This will increase the probability of a break below $1,352. The ETH/USDT pair could then slip to $1,100.
If the bulls want to arrest the decline, they will have to push the price above the 20-day EMA ($1,548). If they do, the pair could rise to $1,743, where the bears could once again establish a strong hurdle. A break above this level would open the door for a possible move to $2,000.
ETH/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the pair is attempting to rebound. The 20-EMA is flattening out and the Relative Strength Index (RSI) is just below the midpoint, suggesting a balance between supply and demand.
The balance will tip in favor of buyers if they push the price higher and sustain it above $1,500. If they do, a relief rally could reach $1,600. On the other hand, if the price turns down and breaks below the rising trendline, the advantage could be tilted in favor of the bears. The pair may then retest the strong support at $1,352.
Polygon (MATIC) corrected sharply from $1.56 on February 18 and hit its 200-day moving average ($0.94) on March 10. The long tail on the day’s candlesticks suggests that the bulls are defending the level fiercely.
MATIC/USDT daily chart. Source: TradingView
The bulls will attempt to push the price above the 20-day EMA ($1.15), where the bears are likely to mount a strong defense. If the price declines from this level, it will indicate that market sentiment remains negative and traders sell on rallies.
This could increase the chances of a break below the 200-day moving average. If this happens, the MATIC/USDT pair could drop to $0.69.
Conversely, if the buyers push the price above the 20-day EMA, it will suggest that the bulls are regaining the upper hand. The pair could then rise to the overhead resistance at $1.30.
MATIC/USDT 4-hour chart. Source: TradingView
The bounce from $0.94 has reached the 20-EMA. This is an important level to watch closely as the pair could rally towards $1.15 if the price sustains above this level.
This level could once again act as strong resistance, but if the bulls arrest the next dip above $1.05, it would suggest that the downtrend may be over. This could open the door for a move to $1.30.
This positive view will be invalidated in the short-term if the price turns down and breaks below the $0.94 support.
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While most major cryptocurrencies have fallen to or below their 200-day moving averages, Toncoin (TON) remains well above that level. This suggests that traders are in no rush to exit.
TON/USDT daily chart. Source: TradingView
The TON/USDT pair has formed a symmetrical triangle pattern near local highs. Price action within a triangle is random and volatile.
Typically, triangles act as continuous patterns. This means the trend in effect until the setting resumes. In this case, if the buyers push the price above the resistance line of the triangle, the pair could start a move towards $2.90.
Conversely, if the price continues lower and breaks below the triangle and the 200-day SMA ($1.90), it will indicate that bears are in command. This could pull the price towards $1.30. Such a move would indicate that the triangle behaves as a reversal setup.
TON/USDT 4-hour chart. Source: TradingView
The downsloping 20-EMA and RSI on the 4-hour chart are in negative territory suggesting bears have the upper hand. If the price turns down from the current levels and breaks below $2.18, the decline could extend to $2.
Conversely, if the bulls push and sustain the price above the 20 SMA, it will indicate that the bulls are attempting a comeback. The pair could then move up to $2.45, where the bears are likely to mount a strong defense. If this level is crossed, the bulls will attempt to break out of the triangle around $2.50.
OKB (OKB) is in a correction phase, but a small positive for the bulls is that it is well above its 200-day moving average ($26).
OKB/USDT daily chart. Source: TradingView
The next support on the downside is the 50% Fibonacci retracement at $36.13 and then the 61.8% retracement at $30.76. The bulls are likely to protect this zone with all their might.
If the price recovers from this area, the OKB/USDT pair could rise to the 20-day EMA ($45.48). This is an important level to watch closely, as a breakout and close above this level would indicate that the corrective phase may be over.
On the other hand, if the price falls below $30.76, it would indicate that traders are in a hurry to get out. The pair may then drop to the 200-day SMA.
OKB/USDT 4-hour chart. Source: TradingView
The downsloping 20-EMA and RSI on the 4-hour chart are in negative territory suggesting bears have the upper hand. There is a minor support near $37.50, but if it gives way, the pair could reach $36.13.
Conversely, if the price recovers and breaks above the 20-EMA, it will indicate that the bulls are attempting to regain control. The pair could then move up to $44.35. This is an important resistance for the bears to guard against, as if it is taken out, the price could reach $50.
This article does not contain investment advice or advice. Every investment and transaction involves risk and readers should do their own research when making a decision.
Information source: compiled by 0x information from BITCOININSIDER.The copyright belongs to the author Anonymous, and shall not be reproduced without permission