Bullish Outlook for OP, TAO, STX, and MNT Following Bitcoin’s $70K Rally

Bitcoin has maintained its gains this week as traders hold onto their positions, even with prices nearing $70,000. The number of Bitcoin whales, or unique addresses holding more than 1,000 Bitcoin, has increased to 2,104, indicating their belief in the continuation of the uptrend. This rally has also boosted sentiment in the overall cryptocurrency market, with the total value locked (TVL) in decentralized finance protocols surpassing $100 billion for the first time in two years, according to data from DefiLlama. The TVL is still below the November 2021 record of $189 billion.

During bull markets, traders tend to disregard caution and chase prices higher, but Bitwise’s chief investment officer, Matt Hougan, warns against investing in “terrible projects” with inflated valuations. If Bitcoin reaches new highs, other altcoins are likely to join in the rally. Here are the top five cryptocurrencies that show strength on the charts.

Bitcoin Price Analysis:

While bears are attempting to halt Bitcoin’s rally near $70,000, the bulls have held strong and have not given up much ground. This suggests that buyers are stepping in with each minor dip. If the bulls successfully push the price above $70,000, the BTC/USDT pair could gain momentum and surge to $76,000, facing a minor hurdle at $80,000. A strong sell-off that pushes the price below the 20-day exponential moving average ($61,422) could trigger a deeper correction towards the 50-day simple moving average ($51,197). Both moving averages and the relative strength index (RSI) indicate that bulls currently have control.

Optimism Price Analysis:

Optimism has been in an uptrend recently, and a break above the resistance level at $4.20 completed a bullish inverse head-and-shoulders pattern on March 5. The 20-day exponential moving average and positive RSI suggest that the path of least resistance is to the upside. If buyers can drive the price above $4.87, the OP/USDT pair could rally towards the pattern target of $5.79. A sharp downturn and a break below the 20-day EMA would indicate that the breakout was a bear trap, potentially causing the price to drop to $3.42.

Bittensor Price Analysis:

Bittensor (TAO) has pulled back to the 20-day EMA, which will be an important support level to watch. A rebound from this level would indicate that bulls remain in control and increase the chances of breaking above $757. A plunge below the 20-day EMA would suggest profit-taking by bulls, potentially leading to a decline to the 50-day SMA ($535). The 4-hour chart indicates that bulls are struggling to maintain the price above $700, which could indicate further selling pressure. A sustained price below the 50-SMA may lead to a drop to $617 or even $550.

Stacks Price Analysis:

The correction in Stacks was met with strong buying interest, as evidenced by the successful defense of the 20-day EMA. The solid bounce indicates that bulls are back in control, although the long wick on the candlestick suggests some resistance from bears. Buyers need to push the price above $3.39 to confirm the uptrend, potentially leading to a jump to $4.58 or even $5. On the downside, a break below the 20-day EMA would suggest weakening bullish momentum, potentially causing a drop to the 50-day SMA ($2.20).

Mantle Price Analysis:

Mantle (MNT) has been on a strong uptrend, but bears are attempting to stall the rally at $1.15. Bulls have prevented the price from falling below the psychological level of $1. The rising moving averages and overbought RSI indicate that bulls are currently in control. A break above $1.15 could signal the next leg of the up move, with targets at $1.37 and $1.50. Conversely, a downturn and a drop below the 20-day EMA could lead to a decline to $0.85 or even $0.80.

Bitcoin is holding onto its gains and the number of whales is increasing, indicating confidence in the uptrend. The rally in Bitcoin has also boosted sentiment in the wider cryptocurrency market, with the TVL in DeFi protocols surpassing $100 billion. Caution is advised as some projects may be overvalued. Altcoins may rally if Bitcoin reaches new highs. The technical analysis of various cryptocurrencies suggests different scenarios, with some indicating further upside potential and others hinting at a potential correction.

Dwaine Reavis

Dwaine Reavis

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