Cryptocurrency Outlook: Bitcoin Stumbles While Altcoins Show Resilience

Market Recap: A Week of Contrasts

This week brought a bounce back for U.S. equities, but if you blinked, you might have missed Bitcoin’s (BTC) attempt at a comeback. It left investors scratching their heads as Bitcoin failed to ride the recovery wave. Meanwhile, Silvergate Bank’s ongoing tribulations may be the spider lurking in the corner of the crypto world, causing investors to keep their wallets firmly closed, and the total crypto market cap taking a nosedive to nearly $1 trillion.

Bearish Sentiment: Is it Just a Phase?

According to the analytics platform Santiment, a significant surge in bearish sentiment has emerged. In their report dated March 5, they noted that “huge spike of bearish sentiment” could actually predict a contrarian effect—essentially, the more bearish folks become, the better the chance of a bounce. It’s almost like the crypto market is the cool kid at school who thrives on the haters’ negativity as motivation.

Currency Fluctuations: US Dollar Makes Crypto Feasible?

A slight glimmer of hope for crypto enthusiasts lies in the recent decline of the U.S. Dollar Index (DXY), which slipped by 0.70 over the last week. This could set the stage for a potential recovery in crypto markets if Bitcoin can maintain a position above $20,000. In that case, we might just see some altcoins strutting their stuff.

Bitcoin Analysis: The Struggle for Dominance

Bitcoin has had a rough go lately, plummeting past the $22,800 support level on March 3. Despite bullish spirits attempting to rebound on March 5, the market has shown resistance as bears are digging in. The 20-day exponential moving average ($23,159) might be mocking Bitcoin right now, with the RSI chilling below 44. Bears are eyeing the $21,480 support—if that gives way, don’t be surprised to see a trip back to $20,000.

If bulls want to shake things up, they need to push Bitcoin above the 20-day EMA. Easier said than done, but if they can pull it off, we might see shades of $24,000 up ahead.

Spotlight on Promising Altcoins

Amid the uncertainty surrounding Bitcoin, four altcoins are worth some serious attention:

• EOS: After persevering through rocky resistance, EOS is holding up above the 20-day EMA ($1.17). It’s formed a rounding bottom, waiting for its moment to surge. Watch for a breakthrough between $1.26 and $1.34 for a potential leap to $1.74.
• Stacks (STX): After an impressive rise of 246%, STX is now consolidating around the 20-day EMA ($0.69). Watch for buying pressure around the 50% Fibonacci retracement level of $0.67, with possible resistance between $0.83 and $0.91.
• ImmutableX (IMX): IMX is nudging well above the 20-day EMA ($1), and buyers are attempting a run toward $1.12 and beyond. Keep an eye on that $1.30 mark because if it breaks, we could see a rally upwards to $1.85.
• Maker (MKR): After a pullback, MKR is signaling potential strength as it tries to breach $963. If bulls can keep the momentum, we could be looking at a dance toward the $1,150 to $1,170 resistance zone.