Bitcoin, Ethereum Price Analysis: Pullback Signals Potential Correction
Bitcoin’s recent rally has encountered a short-term pullback, reflected in the $132 million in inflows into spot Bitcoin exchange-traded funds (ETFs) on March 14th. This slowdown in investment growth could signal a corrective phase for Bitcoin, considering that much of the previous rally was fueled by these very ETFs. Understanding the potential depth of this correction is crucial for investors. Historically, Bitcoin has experienced drops as significant as 40% during its halving cycles, as noted by trader Bags on X (formerly Twitter). If this pattern repeats, Bitcoin could potentially drop to around $45,500.
The crypto market data provides daily views, with Coin360 as a source. Correction is a common occurrence within bull markets, and in this instance, the pullback appears to be primarily due to profit-taking on hedges, rather than widespread “panic selling.” Popular trader Skew confirms this observation, suggesting a more measured response rather than a sudden market crash. Examining the potential for deeper corrections – or a subsequent rebound – requires a detailed assessment of price charts.
Bitcoin’s price saw a profit-booking event at $73,777 on March 14, indicated by a long wick on the candlestick. However, the bulls subsequently stepped in, as evidenced by the long tail on the same candlestick, demonstrating continued buying interest. The price reached the ascending channel pattern, an important support level to watch closely. Should the price fall below this channel and the 20-day exponential moving average ($65,195), it would signal a potential corrective phase. The BTC/USDT pair could then slide to $59,000, and subsequently to the 50-day simple moving average ($54,291). Conversely, a bounce off the support line would suggest continued bullish sentiment and an attempt to regain the momentum above $73,777.
Ether’s upward move stalled near $4,000, prompting short-term traders to book profits. Once again, the long tail on the March 14 candlestick demonstrates this buying pressure. The bulls tried to establish $3,600 as a new support level, but unsuccessful, as evidenced by the price reduction on March 15th. The ETH/USDT pair shows a challenging battle near $3,600. If a rebound occurs, the bulls will attempt to push the pair back to $4,000, while the bears will actively defend this level. Conversely, if the bears drive the price below $3,600, selling could accelerate and the ETH/USDT pair could slump to $3,200, and eventually to the 50-day simple moving average ($2,997). The greater the fall, the longer it will take for the pair to resume its uptrend.
BNB (Binance Coin) experienced a pullback in its strong uptrend, with traders taking profits. The BNB/USDT pair exhibits a long tail on March 15, indicating continued buying pressure at the 38.2% Fibonacci retracement level ($527.50). This signals a positive sign, suggesting that the bulls are not waiting for a deeper correction to enter the market, ultimately increasing the possibility of a breakout above $633 and a subsequent climb to $670 to $692 resistance. Conversely, if the price turns downward from the current level and breaks below $527, it would indicate that all rallies are being sold into. The BNB/USDT pair may then tumble to the 20-day EMA ($485). Solana’s strong uptrend prompted the RSI to enter overbought territory. The rise in SOL suggested a potential correction, potentially pulling the SOL/USDT pair to the 20-day EMA ($142). If the price rebounds off this EMA, then the sentiment remains positive, and traders will continue to buy dips, enhancing the prospects of a rally to $205. However, this optimistic view would be negated on a break below the 20-day EMA. The pair may then slump to the breakout level at $126.
XRP (Ripple) turned down from $0.74 on March 12th, representing a defensive stance by the bears. Further selling pressure intensified on March 15th. The negative divergence on the RSI suggests waning bullish momentum, increasing the risk of the price falling below the 20-day EMA ($0.62) and the breakout level of $0.68. If this occurs, the XRP/USDT pair may initiate a deeper pullback, potentially reaching the 50-day SMA ($0.61) and the Fibonacci retracement level of $0.000023. Conversely, a rebound off the 20-day EMA with strength will signal the bulls attempt to regain the price above $0.74, allowing the pair rally to the overhead resistance of $1.02.
Cardano’s bullish attempt to surpass the $0.80 resistance on March 14th was countered by a significant wick, indicating selling pressure at higher levels. The price dipped to the breakout level of $0.68 on March 15th. If bears sink the price below $0.68, it would signify the start of a deeper correction toward the 50-day SMA ($0.61). Alternatively, a rebound off $0.68 would suggest the bulls continue to buy near strong support levels, enabling the Cardano/USDT pair to swing between $0.68 and $0.80 for a while. A break above $0.80 would launch the pair to $0.92.
Dogecoin’s rise above the $0.18 resistance on March 14th was followed by selling pressure as evidenced by the long wick. The price then dropped to the 20-day EMA ($0.15) on March 15th, suggesting that the DOGE/USDT pair may remain stuck inside a trading range. A break and close below $0.15 would tilt the advantage to the bears. The pair may then tumble to $0.12.
Avalanche’s price experienced a significant range day, indicated by a long wick and a long tail on March 14th. This demonstrated indecision between bulls and bears. The bears attempted to strengthen their position on March 15th, but the long tail on the candlestick suggests solid buying near the breakout level of $50. This suggests the Avax/USDT pair is attempting to flip $50 into support. If buyers shove the price above $59, the Avax/USDT pair could resume its uptrend to $87. If bears want to prevent the upside, they will have to maintain the price below the 20-day EMA. That could sink the pair to the 50-day SMA ($40).
Shiba Inu’s decline below the $0.000029 support level on March 15th signifies the bears’ attempt to establish supremacy. The bulls are trying to defend the 20-day EMA ($0.000027), but the recovery is expected to face selling pressure at the downtrend line. If the price turns lower from the downtrend line, it would increase the likelihood of a slide to the 61.8% Fibonacci retracement level of $0.000023 and then $0.000019. Conversely, if the price turns up and breaks above the downtrend line, it would suggest that the markets have rejected the lower levels. The SHIB/USDT pair could rally to the overhead resistance of $0.000039.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
