Technical Analysis on March 13
Bitcoin surged from the level of $76,606 on March 11, but the bulls could not maintain the price above $84,500 on March 12.
Chief analyst at Nansen, Aurelie Barthere, stated that Bitcoin is undergoing a correction within an upward trend, with the next key level lying between $71,000 and $72,000, the peak of the trading range ahead of the election.
Glassnode also provided a similar forecast in its market report on March 11. The on-chain analytics company stated that the recent sell-off was triggered by short-term investors who may have bought near the peak in January. Glassnode added that Bitcoin could bottom near $70,000 if selling pressure continues.
Not only the cryptocurrency market but even the US stock market has been under pressure in recent days. However, a positive signal for the bulls is that the US Dollar Index (DXY) has adjusted from a multi-year peak above 110 to below 104. Bitcoin often has an inverse correlation with the dollar, suggesting that a bottom may be forming soon.
Will Bitcoin retest the support level of $76,606 or rise above $85,000? What important support and resistance levels should we monitor in altcoins? Let's analyze the charts of the top 10 cryptocurrencies to find the answer.
BTC Technical Analysis
Bitcoin broke the level of $78,258 on March 10 and fell to $76,606 on March 11, but the bears could not maintain lower levels. This indicates strong buying power from the bulls.
The recovery is facing selling pressure near the 20-day Exponential Moving Average (EMA) at $87,262, but a small positive point for the bulls is that the Relative Strength Index (RSI) is showing positive divergence. Buyers need to push the price above the 20-day EMA to indicate that the correction may be coming to an end. Then, the BTC/USDT pair could rise to the 50-day Simple Moving Average (SMA) at $94,654.
On the downside, the bulls are expected to defend the level of $73,777 with all their strength, as breaking this level could cause the pair to fall to $67,000.