Markets took a tumble across the board as March came to a close, with both traditional and crypto assets feeling the pressure. The S&P 500 Index had a particularly rough day, dropping 2% (112.37 points) to close at 5,580.94, after sliding nearly 121 points during intraday trading.
The index now faces minor resistance at 5,878, with a potential correction to the 20-day exponential moving average (EMA) at 5,774 looking increasingly likely. Should this slide continue, the 50-day simple moving average (SMA) at 5,652 could provide critical support.
The US Dollar Index (DXY) showed slight weakness, trading at 104.302 with a daily decline of 0.23%. More telling is its monthly change of -3.08%, suggesting a broader downtrend despite quarterly forecasts placing it near current levels at 104.192. The forecast suggests DXY will remain relatively stable, with predictions indicating a slight rise to 104.127 over the next year.
Bitcoin couldn’t escape the selling pressure either, trading down 2.28% at $81,499. After flirting with the $90,000 milestone last week, BTC has retreated into a more cautious range between $81,279 and $83,535. A potential rally might occur if Bitcoin can establish a higher low in the support zone between $66,500 and $65,000. The current pattern resembles the early stages of typical bear market dynamics where trading volumes decrease while investor sentiment turns cautious.
It’s like Bitcoin climbed to the top of the diving board but got cold feet before taking the plunge into uncharted territory. Still, the positive news of $294.3 million flowing into US-based Bitcoin ETFs on March 21 suggests institutional confidence remains intact.
Ethereum took a harder hit, down 2.94% to $1,791.11, breaking below its 20-day EMA of $2,032. The second-largest cryptocurrency now hovers near a critical support zone between $1,800 and $1,754, with the 50-day SMA at $2,293 representing significant overhead resistance.
XRP faced even steeper declines, dropping 5.88% to $2.0648 and breaking below key moving averages. A potential head-and-shoulders pattern could spell trouble if the $2 support level fails to hold, possibly sending XRP tumbling to $1.27.
Meanwhile, BNB and Toncoin showed divergent trends. BNB fell 2.97% to $591.23, testing Fibonacci support levels, while Toncoin bucked the downward trend, rising 0.78% to $3.889 as it approaches resistance at $4.14.
