Top 5 Cryptocurrencies to Watch This Week: BTC, DOT, SAND, RUNE, ZEC

Bitcoin (BTC) has had a relatively quiet weekend, suggesting traders are treading lightly and not making big bets ahead of the upcoming Federal Open Market Committee meeting on March 15 and March 16. The magnitude of this hike could be the next flashpoint in the crypto market.

Bitcoin’s current neutral movement has analysts speculating. Analytical resource Material Indicators warns that Bitcoin could plummet, but advises investors to be ready to buy the dip, as they believe "a bounce can change your life."

PwC’s Sports Outlook 2022 report highlights three use cases for NFTs. PricewaterhouseCoopers believes that NFT will shape the future of sports, and NFT and digital assets are one of the top ten trends in the sports industry.

Will the crypto market start to change direction in the short term? Let’s examine the chart of the top 5 cryptocurrencies that could participate in the rally if the bullish sentiment picks up.

Bitcoin/USDT

Bitcoin formed a doji candle pattern on March 12 and on Sunday, indicating indecision between bulls and bears. The price is stuck between the 20-day exponential moving average ($39,810) and the horizontal support at $37,000.

The 20-day moving average is flat and the relative strength index (RSI) is just below the median, suggesting a balance between supply and demand.

If the price rises and breaks above the 50-day simple moving average ($39,978), the bulls will attempt to push BTC/USDT above $42,600. If successful, BTC/USDT could rally to $45,400 and then to the channel's resistance line.

Conversely, if the price turns lower and breaks below $37,000, the bears will smell an opportunity. Sellers will then attempt to pull BTC/USDT below the channel support line and sustain it below. Such a move could clear the way for a possible drop to $30,000.

BTC/USDT is forming a descending triangle pattern. The pattern will complete once it breaks and closes below the strong support at $37,000. BTC/USDT could then drop to $34,322 before starting towards the $29,250 target.

Alternatively, if the bulls push and sustain the price above the 50-day simple moving average, BTC/USDT could rise to the downtrend line. A breakout and close above this level will invalidate the bearish pattern. This could attract buying before BTC/USDT could rally towards $45,400.

DOT/USDT

Polkadot (DOT) has been on a downtrend for the past few months, but the bulls are attempting to form a bottom in the area between $16 and $14. The price rose above the 20-day SMA ($17), but the bulls failed to break the 50-day SMA ($18) barrier.

However, a positive sign is that the bulls have not given up too much on the 50-day SMA. This suggests that traders are likely to hold their positions in anticipation of a break above the resistance level. If that happens, DOT/USDT could rally to overhead resistance at $23, where bears could once again pose a serious challenge.

The flat 20-day EMA and the RSI near the median point to a tight range in the near term. If the price turns down from the 50-day EMA, the bears will attempt to drag DOT/USDT below $16. If successful, DOT/USDT could retest the critical support at $14.

The 4-hour chart shows DOT/USDT fluctuating between $16 and $19. The failure of buyers to push the price above the overhead resistance may have attracted short-term traders to take profits. This dragged the price down to the 50-day SMA.

If the price rises above the 200-day SMA, it will suggest that the bulls continue to buy on dips. Buyers will then make another attempt to push the price above the overhead resistance at $19. If they can do this, DOT/USDT could rise to $20 and then to $23.

Conversely, a break and close below the 50-day SMA could increase the odds of a drop to strong support at $16.

SAND/USDT

SAND has been fluctuating between $2.55 and $4.86 for the past few weeks. The bears pulled the price below the 200-day SMA ($3.15) on March 4 but failed to break the $2.55 support.

This suggests accumulation near the support of the range. The RSI is showing signs of positive divergence, suggesting that the bearish momentum may be fading.

If the price rises from the current levels, the bulls will attempt to push SAND/USDT above the 200-day SMA. If this happens, SAND/USDT could rise to the 50-day EMA ($3.51). A break and close above this resistance could open the door for a rally and a move to $4.50 and $4.86.

This bullish view will be invalidated in the short-term if the price turns down and breaks below $2.55. This could indicate a resumption of the downtrend.

The 50-day SMA has been acting as a strong resistance on the 4-hour chart. If the bears pull the price below $2.70, SAND/USDT could drop to solid support at $2.55. A break and close below this level could signal a positive for the bears.

To negate this view, the bulls will have to push the price above the area between the 50-day SMA and $3. If this happens, SAND/USDT could rally to $3.42 and the bears could mount a strong defense again.

RUNE/USDT

THORChain (RUNE) broke above the moving average on March 1 and managed to hold that level on a retest on March 8. This suggests that market sentiment has shifted from selling on rallies to buying on dips.

The bulls will now attempt to push the price above the 200-day SMA ($7.90), where the bears could once again pose a strong challenge. If the price does not pull back too much from the 200-day EMA, the bulls will make another attempt to clear this hurdle. If they succeed, RUNE/USDT could rise to $9.

Alternatively, the 20-day EMA is an important level to watch if the price turns down from current levels. A strong bounce off this level would indicate that the bullish sentiment remains intact, while a break below this level could lead to a drop to $4.

The 20-day EMA on the 4-hour chart is sloping up and the RSI is in positive territory, suggesting that the bulls have the upper hand. RUNE/USDT may now rise to the overhead resistance at $7, where the bears will attempt to arrest the advance.

Alternatively, if the price turns down from current levels, RUNE/USDT could drop to the 20-day EMA. If the price bounces off this level, the bulls will attempt to resume the uptrend. The bears will have to pull the price lower and sustain it below the 20-day EMA to signal a short-term trend change.

ZEC/USDT

Zcash (ZEC) broke out and closed above the $135 resistance on March 8, forming a double bottom pattern. A subsequent break above the 200-day SMA ($145) on March 10 indicated that the bulls were back in the market.

The bears are currently attempting to pull the price back below the 200-day SMA and challenge the breakout level of $135. This is an important level for bulls to defend, as a break below it could signal that the recent breakout could be a bear trap. Subsequently, ZEC/USDT could drop to the 50-day moving average ($114).

If the price rebounds from current levels or $135, it will indicate that sentiment remains positive and traders are buying on dips. The bulls will then attempt to push the ZEC/USDT above $160 and continue higher. The breakout of the double bottom pattern targets $189.

On the 4-hour chart, the bears pulled the price below the 20-day SMA, but they failed to sustain lower levels. This suggests that the bulls will continue to buy every minor dip. The bulls will now attempt to push the price above $160 and resume the uptrend. The rising 20-day EMA and RSI in positive territory suggest that the path of least resistance is to the upside.

Contrary to this assumption, the sell-off could accelerate if the price turns down from the overhead resistance and breaks below $143. ZEC/USDT could then drop to the critical support at $135.