The financial world has been in turmoil following the recent crisis at Silicon Valley Bank (SVB) and the subsequent sell-off of risky assets by traders. The S&P 500 Index plunged by 4.55%, while Bitcoin (BTC) also dipped by about 9% last week. The crypto market has also been affected, with USD Coin (USDC) losing its peg to the US dollar following reports that $3.3 billion of Circle’s $40 billion in USDC reserves were held at SVB. USDC has since climbed up above $0.96 at the time of writing, but the SVB collapse has caused short-term uncertainty and left investors watching for any signs of contagion spreading to other regional banks across the US.
In times of uncertainty, it is advisable to stay on the sidelines. However, select cryptocurrencies may start their recovery if there is no domino effect following SVB’s debacle. The cryptocurrencies selected in this article have all been trading above the 200-day simple moving average, a key level that long-term investors use to determine whether the asset is in a bull or bear phase. Let’s dive into the charts of Bitcoin and the four altcoins that may outperform if the sector sees a recovery over the next few days.
Bitcoin Price Analysis
Bitcoin has corrected back to the 200-day SMA ($20,389). Buyers are expected to defend the level with all their might because a break below it could intensify selling. On the way up, the 20-day exponential moving average ($22,042) is likely to act as a major hurdle. If the price turns down sharply from the 20-day EMA, the BTC/USDT pair may retest the support at the 200-day SMA. If this level cracks, the pair may slide to $18,400 and then to $16,300. If bulls want to prevent the decline, they will have to drive the price above the 20-day EMA. If they manage to do that, the pair may pick up momentum and soar toward the overhead resistance at $25,250.
The 4-hour chart shows that the bulls are attempting to start a recovery from $19,550 but the bears are aggressively defending the 20-EMA. If the price turns down from the current level, the bears will again try to sink the pair below $19,950. If they succeed, the pair could fall to $18,400. Conversely, if the price turns up and breaks above the 20-EMA, it will suggest that the short-term selling pressure may be reducing. That may start a recovery to $21,480 where the bears will again pose a strong challenge. If this level is scaled, the pair may reach $22,800.
Ethereum Price Analysis
Ether (ETH) dipped below the 200-day SMA ($1,421) on March 10 but the long tail on the day’s candlestick shows solid buying at lower levels. The recovery is facing resistance near $1,461. If the price turns down from the current level and reaches the 200-day SMA, it will signal that bears are selling on a shallow bounce. That will increase the likelihood of a drop below $1,352. The ETH/USDT pair could then slide to $1,100. If bulls want to prevent the decline, they will have to thrust the price above the 20-day EMA ($1,548). If they do that, the pair could rise to $1,743 where the bears may again erect a strong barrier. A break above this level will open the doors for a possible rise to $2,000.
The 4-hour chart shows that the pair is attempting a rebound. The 20-EMA is flattening out and the relative strength index (RSI) is just below the midpoint, indicating a balance between supply and demand. This balance will tilt in favor of the buyers if they push and sustain the price above $1,500. If they do that, the relief rally may reach $1,600. On the other hand, if the price turns down and breaks below the uptrend line, the advantage may tilt in favor of the bears. The pair may then retest the strong support at $1,352.
Polygon Price Analysis
Polygon (MATIC) corrected sharply from $1.56 on Feb. 18 and reached the 200-day SMA ($0.94) on March 10. The long tail on the day’s candlestick shows that the bulls are fiercely defending the level. The bulls will try to push the price to the 20-day EMA ($1.15) where the bears are likely to mount a strong defense. If the price turns down from this level, it will suggest that the sentiment remains negative and traders are selling on rallies. That could increase the prospects of a drop below the 200-day SMA. If that happens, the MATIC/USDT pair might slump to $0.69.
Conversely, if buyers propel the price above the 20-day EMA, it will suggest that the bulls are back in the driver’s seat. The pair could then rise to the overhead resistance at $1.30. The recovery from $0.94 has reached the 20-EMA. This is an important level to keep an eye on because if the price sustains above it, the pair may rally to $1.15. This level may again act as a strong resistance but if bulls arrest the next decline above $1.05, it will suggest that the downtrend could be over. That may open the gates for a possible rise to $1.30.
TON Price Analysis
Toncoin (TON) is still way above its 200-day SMA ($1.90), suggesting that traders are not rushing to the exit. The TON/USDT pair has formed a symmetrical triangle pattern near the local high. Typically, the triangle acts as a continuation pattern. That means the trend that was in force before the formation of the setup resumes. In this case, if buyers kick the price above the resistance line of the triangle, the pair may start a move toward $2.90.
Conversely, if the price continues lower and plummets below the triangle and the 200-day SMA ($1.90), it will suggest that bears are in command. TON/USDT 4-hour chart shows that bears have the upper hand. If the price turns down from the current level and breaks below $2.18, the drop is likely to extend to $2. Contrarily, if bulls drive and sustain the price above the 20-EMA, it will suggest that bulls are attempting a comeback. The pair may then rise to $2.45 where the bears may mount a strong defense. If this level is crossed, the bulls may try to pierce the triangle near $2.50.
OKB Price Analysis
OKB (OKB) is in a corrective phase but is still above its 200-day SMA ($26). The next support on the downside is the 50% Fibonacci retracement level of $36.13 and then the 61.8% retracement level of $30.76. If the price turns up from this zone, the OKB/USDT pair may rise to the 20-day EMA ($45.48). A break and close above it will signal that the corrective phase may be over. On the other hand, if the price slips below $30.76, it will suggest that traders are rushing to the exit. The pair may then plunge to the 200-day SMA.
The 4-hour chart shows that bears have the upper hand, with the downsloping 20-EMA and the RSI in the negative territory. There is a minor support near $37.50, but if it gives way, the pair may reach $36.13. Conversely, if the price turns up and breaks above the 20-EMA, it will suggest that bulls are trying to regain control. The pair may then rise to $44.35, an important resistance level for the bears to guard.
Conclusion
The SVB crisis has caused short-term uncertainty and left investors watching for any signs of contagion spreading across the US. However, select cryptocurrencies may start their recovery if there is no domino effect following SVB’s debacle. The cryptocurrencies selected in this article are trading above the 200-day simple moving average, a key level that long-term investors use to determine whether the asset is in a bull or bear phase. The recovery of Bitcoin, Ethereum, Polygon, TON, and OKB will be closely watched by traders and investors as they seek to navigate these uncertain times in the financial markets.
