Bitcoin and the U.S. stock market are attempting to recover, but selling at overhead resistance levels may continue to weigh on bullish momentum.

Bitcoin and the U.S. stock market are trying to start the week on a positive note, but some analysts are skeptical about the market’s short-term prospects. According to Mike McGlone, senior macro strategist at Bloomberg Intelligence, Bitcoin will face significant resistance at $25,000. McGlone believes that “it may take a while for the buy-and-hold type to take hold.”

It looks like Bitcoin whales, unique entities that own 1,000 BTC or more, don’t believe in the crypto market’s recovery either. According to Glassnode, the number of Bitcoin whales has dropped to 1,663, far below the peak of 2,161 in February 2021.

It is difficult for any market to bottom out. Therefore, traders should try to build a portfolio when they believe that the downtrend has ended and a bottom formation has begun.

They can build a portfolio gradually rather than buying the entire amount at once and aim to complete the purchase before the asset picks up momentum and soars higher.

Can strength in the stock market pull Bitcoin and altcoins higher? Let’s study the charts to find out.

SPX

The S&P 500 (SPX) index broke below the 20-day exponential moving average or EMA (4,046) on February 17, which intensified the selling and pulled the price to the uptrend line. Although the bears pulled the price below the uptrend line on February 24, the lower levels attracted buying as seen from the long tail of the candlestick on that day. This helped the index close near the uptrend line.

Bulls may face a tough task as bears are likely to sell on any relief rally near the 20-day EMA as shown by the long wick on the February 27 candlestick. If prices turn down from the 20-day EMA, it will indicate negative sentiment and traders are selling on minor rallies. A close below the uptrend line could open the doors for a drop to 3,764.

If the bulls want to save the situation, they will have to push the price back above the 20-day EMA. If they do so, it will indicate that the break below the uptrend line could be a bear trap. The index might then try to rally towards the overhead resistance at 4,200.

DXY

The bulls successfully defended the retest of the breakout level of the wedge pattern on February 20 and the US Dollar Index (DXY) started a stronger rebound.

The index has reached the 38.2% Fibonacci retracement level of 105.52. This level could see the bears trying to stall the recovery. If the sellers want to remain holding, they will have to drop the price below the moving averages.

On the other hand, if the bulls want to strengthen their positions, they will have to push the price above 105.52. If they manage to do that, the index could extend its rally to the 50% retracement level at 106.98 and then to the 61.8% retracement level at 108.43.

Bitcoin/USDT

Bitcoin rebounded from the $22,800 support on February 25 and moved above the 20-day EMA ($23,417) on February 26. This suggests that lower levels are attracting buyers.

However, the bears may not give up easily. They will try to pull the price back below the 20-day EMA and challenge the 50-day simple moving average (SMA) ($22,433). If this level fails, the BTC/USDT pair could plummet to the next major support at $21,480.

Alternatively, if the price rebounds off $22,800 again, it will suggest that buyers are defending this level fiercely. This could indicate a range-bound move between $22,800 and $25,250 for a few days.

Ethereum/USDT

The rebound from the 50-day SMA ($1,587) on Feb. 25 shows that the bulls are fiercely defending this level. The 20-day EMA ($1,626) has flattened out and the RSI is just above the midpoint, suggesting a balance between supply and demand.

The balance will tilt in favor of the bulls if they push the price higher and close above $1,680. The ETH/USDT pair will then try to break out of the $1,800 resistance and start moving towards the $2,000 psychological level.

Alternatively, if the price again turns down from the overhead resistance, it will suggest that the bears are unwilling to give up. This could increase the possibility of a break below the 50-day SMA. The pair can then drop to $1,460 and below it to $1,352.

BNB/USDT

BNB broke down and closed below the 50-day EMA ($307) on February 24, but the bulls bought the dip and pushed the price to the 20-day EMA ($309) on February 26. This level attracted short selling.

If the price turns down and breaks below $295, it will suggest that the sellers have turned the 20-day EMA into resistance. The BNB/USDT pair could then drop to the critical support of $280. ​​This is an important level to watch out for as the rebound could point towards the range formation between $280 and $318 for a while.

If the buyers push the price above $318 or the bears sink the price below $280, the next trending move in the near term is likely to start.

XRP/USDT

Ripple has been trading in a wide range between $0.30 and $0.43 over the past few weeks. The price fell below the 50-day moving average ($0.39) on February 23 and has been falling towards the solid support level of $0.36.

The 20-day EMA ($0.38) has started to turn down and the RSI is in the negative territory, which shows that bears have a slight advantage in the short term. If the price breaks below $0.36, the XRP/USDT pair is likely to slide to the support line of the descending channel.

This negative view may be invalidated in the short term if the price rises and rises above the channel. The pair may then attempt a rally to the overhead resistance at $0.42, where the bears are expected to mount a strong defense.

ADA/USDT

Cardano’s ADA rebounded from $0.35 on Feb. 25, but the recovery faced selling at the 50-day SMA ($0.37). This suggests that the bears are attempting to turn the level into resistance.

The moving averages are on the verge of a bearish crossover with the 20-day EMA ($0.38) crossing below the 50-day EMA. Such a move suggests that bears have the upper hand in the short term. A breakout and close below the strong support zone between $0.34 and $0.32 could start a decline towards $0.26.

If the bulls want to arrest the downtrend, they will have to push the price back above the 20-day EMA. The ADA/USDT pair could then climb to the $0.42–$0.44 resistance area.

Related: Bitcoin Price Retests $24,000 as Dollar Falls to Monthly Close

Bitcoin/USDT

Polygon’s MATIC broke below the 20-day EMA ($1.30) on Feb. 24 and the bears successfully staged a retest on Feb. 26. This suggests that the 20-day EMA is acting as a new roof.

The bears will next try to sink the price below the 50-day SMA ($1.16). If they succeed in this effort, the selling is likely to intensify and the MATIC/USDT pair may drop to the next strong support at $1.05.

If the buyers want to regain the upper hand, they will have to push the price above the 20-day EMA. This will indicate buying on dips. The pair could first climb to $1.42 and then rally to the $1.50–$1.57 resistance zone.

Dogecoin/USDT

Dogecoin rebounded from strong support near $0.08 on February 25, but the recovery faced selling pressure from bears on February 27.

The moving averages have completed a bearish crossover and the RSI is in the negative territory, which suggests that bears have the upper hand. A breakout and close below the $0.08 support will complete a head and shoulders pattern in the short term. The DOGE/USDT pair could then plummet to $0.07.

Contrary to this assumption, if the price turns up from the current levels or $0.08, it would suggest lower levels as buying opportunities. The relief rally might face selling near the downtrend line but if the bulls break this hurdle, the pair might attempt a rally to $0.10.

SOL/USDT

Solana’s SOL is witnessing a fierce battle between the bulls and bears near the 50-day SMA ($22.75). This suggests that the bulls are attempting to protect this level while the bears are trying to break above it and top out.

If the price breaks below $21.41, the SOL/USDT pair could drop to the important support at $19.68. This is an important level for the bulls to defend as a close below it could increase the selling pressure and sink the pair to $15.

Conversely, if the price rises and rises above the 20-day EMA ($23.23), the bulls will push the pair to the resistance line. The bears are likely to defend this level with all their might, but if the buyers overcome this hurdle, a move to $39 is possible.

C3 Tip: This article does not contain investment advice or recommendations. Every investment and trading involves risk, and readers should conduct their own research when making a decision.