The cryptocurrency markets and the United States equities markets witnessed profit-booking this week as the macroeconomic data hinted toward continued rate hikes by the Federal Reserve. Bitcoin (BTC) is down more than 4% and the S&P 500 fell 2.7% to record its worst week of the year.
The CME FedWatch Tool shows a 73% probability of a 25 basis points rate hike by the Fed in the March meeting but after the hotter-than-expected inflation readings in two weeks, the probability of a 50 basis point rate hike has started to slowly gain traction.
Crypto market data daily view. Source: Coin360
During periods of uncertainty, some coins enter a deeper correction while a few buck the trend and continue to outperform. Hence, it becomes important to select the right coins to trade.
A few coins that have witnessed a shallow correction or have bounced sharply off the support have been selected in this list. Let’s see their charts and determine the levels to watch out for.
BTC/USDT
Bitcoin plunged below the 20-day exponential moving average ($23,391) on Feb. 24 but the bears could not build upon this advantage and sustain the price below the strong support at $22,800.
BTC/USDT daily chart. Source: TradingView
The price bounced off $22,800 on Feb. 25 and the bulls are trying to push the price above the 20-day EMA. If they manage to do that, it will indicate that the BTC/USDT pair may consolidate between $25,250 and $22,800 for a few days.
The flattening 20-day EMA and the relative strength index (RSI) near the midpoint also suggest a range-bound action in the near term.
Alternatively, if the price slips below $22,700, the selling could intensify and the pair may plummet to the next strong support at $21,480.
BTC/USDT 4-hour chart. Source: TradingView
The 20-EMA has turned down on the four-hour chart and the RSI is in the negative territory. This indicates an advantage to the bears. Sellers will try to protect the 20-EMA, and if the price turns down from this level, the likelihood of a break below $22,800 increases. If that happens, the selling may intensify and the pair may slide to $21,480.
On the contrary, if the price breaks above…
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