Bitcoin’s rally to $70k paves the way for OP, TAO, STX and MNT

Bitcoin (BTC) managed to hold on to gains this week, indicating that traders are in no mood to book profits despite the price reaching around $70,000. The number of Bitcoin whales, unique addresses holding more than 1,000 Bitcoins, in It has risen to 2,104 since March 7, suggesting that improvement will continue.

Bitcoin's rally has boosted sentiment in the cryptocurrency sector. Data from Defillama shows that for the first time in two years, the total global value locked (TVL) in decentralized finance (DeFi) protocols has topped $100 billion. However, even after adding TVL, it is still far short of the record $189 billion set in November 2021.

During a bull market, traders throw caution out the window and chase prices higher. This generally does not end well. Bitwise Chief Investment Officer Matt Hogan warned investors to be cautious as “scary projects” on X were “trading at crazy prices.”

If Bitcoin soars to new highs, select altcoins may join the party. Let's take a look at the top 5 cryptocurrencies that look strong on the charts.

Bitcoin price analysis

The bears are trying to stop Bitcoin's rally around $70,000, but the positive sign is that the bulls haven't given up much ground. This means that every little dip is being bought.

The bulls will try to continue the growth by pushing the price above $70,000. If they do, the BTC/USDT pair could rise to $76,000, boosting momentum. This level could act as a small barrier, but if crossed, the rally could reach $80,000.

If the bears want to come back, they need to sell aggressively and lower the price below the 20-day exponential moving average ($61,422). That could start a deep correction toward the 50-day simple moving average ($51,197), hitting the stops of many short-term traders.

Both moving averages are trending higher, and the Relative Strength Index (RSI) is in positive territory on the 4-hour chart, indicating that the bulls are in command. Buyers put the price above the 20-EMA, indicating buying at each minor pot. A move above $70,000 could begin the next leg of the rally.

Conversely, if the price declines and breaks below the 20-EMA, the pair may slide towards the 50-SMA. A close below this support will be the first sign that the bulls will rush to the exit. Then the couple can drop about $59,000.

Optimistic price analysis

Optimism has been growing for the past few days. A break above the $4.20 resistance completed a bullish inverse head and shoulders pattern on March 5.

The uptrending 20-day EMA ($4.12) and the RSI in the positive zone suggest that the path of least resistance is up. If buyers lift the price above $4.87, the OP/USDT pair may come to the $5.79 pattern target.

Contrary to this assumption, if the price declines significantly from the current level and breaks below the 20-day EMA, it indicates that a breakout may be a bear trap. The pair could drop to $3.42. A break below this level will tilt the advantage to the bears.

The pair pushed the price above $4.20, suggesting positive sentiment that buys every little dip. Buyers will try to overcome the resistance at $4.87 and establish their dominance. If they succeed, the pair can go up to $5, the bears can mount a strong defense again.

The first sign of weakness is a break and close below the 50-SMA. That adds up to a $4.20 retry opportunity. The bears need to break the price below this support to signal the start of a correction phase.

Bittensor value analysis

Bittensor (TAO) has returned to the 20-day EMA ($646), which is an important short-term level to watch.

If the price bounces back from the 20-day EMA, it suggests that the bulls are in control. That adds up to more than $757 in vacation time. The TAO/USDT pair could continue to rise to $846.

Instead, if the price falls below the 20-day EMA, it suggests that the bulls are taking profits in a hurry. The pair may slide towards the 50-day SMA ($535). To signal a trend reversal, the bears need to break the price below the 50-day SMA.

The 4-hour chart shows that the bulls are struggling to keep the price above $700. This suggests that the bears remain sellers in rallies. If the price stays below the 50-SMA, the next stop could be $617. If this level also fails to hold, the pair could drop to $550.

On the contrary, if the price recovers from the current level, it shows that the bulls are trying to turn the $700 level into support. If they can pull it off, the pair can try again for $757, potentially breaking even. The pair can go up to $850.

Related: XRP Disappoints with Bitcoin in 2024 – Possible Price Reversal?

Stack price analysis

The bulls successfully protected the 20-day EMA ($2.77) during the Stacks (STX) correction. This shows a positive sentiment where bulls continue to buy dips.

A strong retracement on March 10 shows that the bulls are back to full strength, but the long wick on the candle shows that the bears have not yet given up. Buyers need to push the price above $3.39 to signal that an uptrend has resumed. The STX/USDT pair may jump to $4.58 and eventually to the psychologically important $5 level.

The 20-day EMA remains a critical level to watch for the downside. If the bears drop the price below this support, it shows that the bulls are losing their grip. The pair may fall towards the 50-day SMA ($2.20).

The 4-hour chart shows that after breaking above the lower line, the price rose sharply, but the failure to break the $3.39 level attracted profit booking. The price has dropped to the bottom line. If the price recovers strongly from the current level, it will add a break above $3.39.

Conversely, if the price continues lower and breaks below the moving averages, it suggests that the bears remain highly active. The pair may drop to $2.40 and later to $2.20.

Mantle price analysis

Mantle (MNT) is asking for a higher payout, but the bears are not giving up and are trying to stop the rally at $1.15 as seen from the long wick on the March 8 candle.

A small advantage for buyers is that it does not allow the price to stay below the psychological level of $1. Rising moving averages and an RSI in the overbought zone indicate that the bulls are in the driver's seat.

If buyers push the price above $1.15, the MNT/USDT pair may initiate the next uptrend to $1.37 and then $1.50. If the price declines and falls below the 20-day EMA ($0.91), this optimism will be rejected in the near term. The pair may drop to $0.85 and $0.80.

The bulls are trying to turn the $1.01 breakout level into support. If they do, it indicates strong buying at lower levels. If buyers drive the price above $1.07, the pair could reach $1.15. A break above this level could indicate a rapid rise.

Alternatively, if the bears lower the price below $1.01, it indicates a lack of interest at the high level. There is a small support at the 50-SMA, but if this level is released, the pair can go down to $0.85.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.