Top 5 Cryptocurrencies to Watch This Week: BTC, LUNA, AVAX, ETC, EGLD

Bitcoin (BTC) rose above $42,000 on March 19, but bulls continue to face strong challenges from bears at higher levels.

Although the price of Bitcoin has recovered from $37,578 on March 13, Cointelegraph market analyst Marcel Pechman emphasized that the long-to-short ratios of top traders on the three major exchanges suggest that professional traders are not buying aggressively.

However, while Bitcoin is struggling at higher levels, some altcoins are showing strength. The Twitter account BTCFuel predicts that altcoins may be entering the “final stages of the hype phase” and may peak in the summer.

Investors have withdrawn roughly 550,000 Ethereum (ETH) from centralized exchanges year-to-date, Glassnode data shows. Due to outflows, the exchange’s net ETH balance plummeted to 21.72 million ETH from 31.68 million ETH in June 2020.

Can Bitcoin Stay Above the Psychological $40,000 Level and Will This Divert Attention to Altcoins? Let’s examine a chart of five of the most famous cryptocurrencies to find out.

Bitcoin/USDT

Bitcoin is facing resistance near $42,594, which shows that traders are cautious at higher levels. Prices could now slide towards the moving averages, an important support level to watch.

If the price bounces off the moving averages, it will show that the bulls are not waiting for a deeper correction to buy. This could improve the outlook for a breakout and close above the overhead resistance. If this happens, BTC/USDT could rally to $45,400 and then rally to the resistance line of the ascending channel.

Contrary to this assumption, if the price falls and breaks below the moving average, BTC/USDT could drop to $37,000. A bounce off this support would suggest that BTC/USDT could remain range-bound between $37,000 and $42,594 for a few days.

The bears will have to pull the price lower and sustain it below the support line of the channel to signal a resumption of the downtrend.

The 4-hour chart shows that the bears are defending the overhead resistance at $42,594. If the price bounces off the 20-day exponential moving average, the bulls will attempt to push BTC/USDT above the overhead resistance. If they can do this, BTC/USDT could rally towards $45,400.

Conversely, if the price breaks below the 20 EMA, it would suggest that short-term traders may be selling near overhead resistance. This could open the door for a possible drop to the 50-day simple moving average. If this support breaks, the decline could extend to $37,000.

LUNA/USDT

Terra’s LUNA token bounced off its 20-day EMA ($86) on March 18, indicating strong buying at lower levels. Both moving averages are sloping upwards, and the relative strength index (RSI) is in positive territory, suggesting a favor for buyers.

If buyers push and sustain prices above $96, LUNA/USDT could challenge the all-time high of $105. A breakout and close above this resistance will signal a resumption of the uptrend. LUNA/USDT may first rally to $115 and then to $125.

Alternatively, if the price turns down from $96, LUNA/USDT could drop to the 20-day EMA again. A break and close below this support will indicate that the bullish momentum is weakening. Then LUNA/USDT could drop to the strong support area of $75-$70.

LUNA/USDT has been consolidating between $85 and $96. Although the bears pulled the price below $85, they were unable to sustain lower levels. This suggests strong buying on dips. The two moving averages cross each other, suggesting range-bound action in the near term.

If the price rises above $96, the advantage will turn in favor of buyers, and then LUNA/USDT may rally to $105.

Conversely, if the price turns down from $96, LUNA/USDT could fall to the moving averages and then to $85. The bears will have to pull the price lower and sustain it below the $85-$82 support zone to signal the start of a deeper correction.

AVAX/USDT

On March 18, AVAX broke out and closed above the downtrend line of the descending channel, indicating a possible change in trend. However, the bears have other plans and are currently attempting to pull the price back below the breakout level.

If the price pulls back from current levels but bounces off the downtrend line of the channel, it will indicate a valid breakout. This increases the probability of a rally towards the psychological $100 level. The rising 20-day EMA ($78) and the RSI in positive territory point to favor for the buyers.

Conversely, if the price re-enters the channel and breaks below the moving averages, it would indicate that the recent breakout was likely a bull trap. This could catch some buyers off guard, leading to a break below the uptrend line.

The 4-hour chart shows that a breakout channel has pushed the RSI into overbought territory. This could lead to short-term traders taking profits. AVAX/USDT could now drop to the 20-day EMA, which could act as a strong support.

If the price bounces off this level, it will indicate that market sentiment has turned bullish and traders are buying on dips. This will increase the likelihood of a continuation of the rally.

Conversely, a breakout and close to the channel will indicate that the bullish momentum has weakened. This could pull AVAX/USDT down to the 50-day SMA.

ETC/USDT

Ethereum Classic (ETC) recovered after breaking out and closing above the downtrend line. Strong buying pushed the price near the overhead resistance at $38. The bears are likely to defend this level vigorously.

If the price turns down from current levels, ETC/USDT could drop to $32. The 20-day EMA ($28) is starting to turn up and the RSI is in overbought territory, giving buyers an edge.

If the price does not decline sharply from current levels or rebound strongly from $32, the bulls will make another attempt to clear the overhead hurdle of $38. If they succeed, ETC/USDT could rally to $45 and then to $50.

Alternatively, if the price turns down and breaks below $32, the next stop could be the 20-day EMA. A break and close below this level would indicate that the bears are back in the game.

The 4-hour chart shows that ETC/USDT began to rebound vertically after breaking through the downtrend line. This pushed the RSI into overbought territory. Such overbought levels are usually followed by sharp declines.

ETC/USDT could fall to the 38.2% Fibonacci retracement level of $33 and then the 50% retracement level of $32. The bulls are likely to defend this zone aggressively. If the price bounces off this support area, buyers will try to push ETC/USDT above the overhead resistance and resume the uptrend.

The bullish momentum could weaken after the breakout and close below $32. ETC/USDT could then drop to the 61.8% Fibonacci retracement level of $30.

EGLD/USDT

Elrond (EGLD) broke out and closed above its moving averages on March 15, suggesting that the bulls are attempting a comeback. The bears have been trying to pull the price back below the moving averages, but the bulls have thwarted their efforts.

The 20-day EMA ($151) has started to gradually rise and the RSI has moved into positive territory. This suggests that the path of least resistance is to the upside. If buyers push the price above $169, EGLD/USDT could extend its uptrend towards the psychological $200 level. The bears are expected to mount a strong defense at this level.

This positive view will be invalidated if the price turns lower and breaks below the 20-day EMA. Such a move suggests that the recent break above the 50-day SMA ($155) could be a bear market rally. Then ETC/USDT could drop to $125 again.

The bulls pushed the price above the overhead resistance at $160, but the bears quickly pulled the price lower and tried to trap the aggressive bulls. Although the price fell below the 20-day EMA, the bears did not build on this advantage. This indicates strong buying at lower levels.

The bulls pushed the price back above $160 again and attempted to resume the rise. The bullish momentum could pick up after the breakout and close above $169. This positive view will be negated if the price turns down and breaks below $152