BTC price is still consolidating, which gives altcoin traders the chance to range trade and make short-term gains.
Bitcoin (BTC) is trying to make a new low as investors take advantage of low prices to buy more. Twitter user PlanC recently pointed out that the number of addresses with at least two big incoming transactions but no big outgoing transactions has hit a 57-month high, which is a good sign.
Even so, not everyone thinks that Bitcoin will be a good thing in the long run. Ari Rudd, a well-known analyst, said there are three long-term technical setups that point to more Bitcoin declines. Rudd thinks that Bitcoin could be a good buy at a price between $24,000 and $27,000.
Bloomberg looked at data from 2022 and found that the price of Bitcoin was calmer than the Nasdaq 100 index was at that time. During this year, there have been only five times when Bitcoin has moved more than one standard deviation from its average in either direction, while the Nasdaq 100 has seen 12 of these moves.
Generally, when there is a lot of volatility, the range widens. Because the Nasdaq 100 has dropped a lot, traders may be wary. This could lead to more people selling Bitcoin.
Let’s look at the charts of the top 10 cryptocurrencies to find important support and resistance points.
Bitcoin is trying to get back above the 20-day exponential moving average ($41,493), which means that people are buying when the price drops.
The bulls will try to push and keep the price above the level of $45,821. If they can do that, the BTC/USDT pair will finish a bullish inverse head and shoulders pattern, which means it will go up.
To start, the pair could first rise to the psychological level of $50,000. If this level is crossed, the rally could then go to the strong overhead resistance at $52,088.
This is not true. If the price drops below the current level or the overhead resistance, it will show that bears will keep selling on rallies. That would make them $39,600. The bears will have to make the price fall below this level to get the upper hand.
On Feb. 11, Ether (ETH) fell below the 20-day EMA ($2,934) and re-entered the descending channel, which means that people are likely to sell at higher prices. For example, the price has been stuck to the 20-day EMA for the last two days.
This is based on the flattish 20-day EMA and the relative strength index (RSI) that is just below the midpoint. This means there is a balance between supply and demand. Buyers will make one more push to push the ETH/USDT pair above the $3,283.66 to $3,411.43 level if the price breaks and stays above the 20-day EMA.
If they do well, the pair will make an inverted H&S pattern. This reversal setup has a goal of $4,408.
Another way to look at it: If the price drops back to where it came from, it will show that bears are still going to sell when things get better. That will make it more likely that the price will fall to the strong support level at $2,652.
This means that traders who bought Binance Coin (BNB) at lower prices may be taking profits. The 20-day EMA ($407) broke and closed below the BNB price on Feb. 11.
As a side note, the bulls have not let the bears get their way, and they are buying dips below $400. The 20-day EMA is flat, but the RSI has dropped to 47, which gives the bears a small lead.
If the price stays below $400, the chance of a drop to $347.40 rises. People who think this way will have to change their minds if the BNB/USDT pair turns up from where it is now and breaks above the 50-day simple moving average ($439). Then, the two could start their journey toward the psychological level at $500.
If you look at Ripple (XRP) right now, it’s down from $0.85, which means that bears are selling on rallies. The bears will now try to get the price down below $0.75.
The selling could get worse if they do that. People who bought at lower prices or when the price hit $0.75 might rush to get out. Because of that, the XRP/USDT pair could go up to $0.65 and then down to $0.60.
On the other hand, if the price rises from the current level or bounces back off of $0.75, it will show that bulls are putting money into the market near that level. The buyers will then try to push the price above the $0.85 to $0.91 resistance zone to restart the up-move.
When Cardano (ADA) fell below the 20-day EMA ($1.11) on Feb. 11, the strong support at $1.01 was a good place to buy the stock. Retesting a support level over and over again tends to make it less strong.
The moving averages are going down and the RSI is going down, which means that the bears are in charge. A break and close below $1 could mean that the downtrend is going to start again. The ADA/USDT pair could then fall to a value of about $0.80.
If the bulls again hold the $1 support, the pair will try to rise above the moving averages. This is not true, though. They will have to push and hold the price above the channel to show that there could be a change in the trend.
Solana (SOL) is still inside the descending channel pattern and is slowly correcting toward the strong support level of $80.83, which is where the stock is now. RSI is in the negative zone, which means that bears have the upper hand. The 20-day EMA ($106) has started to turn down again.
The SOL/USDT pair could now fall to the strong support level of $80.83, which is where the pair is now. Important: If it breaks, the selling could get worse and the pair could fall down to the channel’s support line. This is a level to keep an eye out for.
People on the other hand, will try to push prices up from where they are now, or if they rebound off of $80.83. As soon as this level is broken and then closed, the downtrend could end. This is the first sign.
Terra’s LUNA token has been trading below $54.20 for the past three days, but the bulls haven’t let the price break and stay below the $50 level.
A break and close above the 20-day EMA ($56) will be the first sign of strength. This will show that the bears may be losing their grip. There, the bulls will try to push the price down until it meets the downtrend line of the descending channel. There, the bears may again pose a big obstacle, but the bulls will try again.
It could also happen if bulls don’t push prices above the 20-day EMA in the next few days. The selling could get worse and the LUNA/USDT pair could fall to $43.44. The moving averages are going down and the RSI is going down, which means that the bears have a small advantage.
It broke and closed below the 20-day EMA ($0.14) on Feb. 11. As the price fell from the 50-day SMA ($0.15) on Feb. 12, the bulls could not get back to the level.
The RSI has dropped below 47, which means that the bears are trying to take the lead. If the price drops below $0.14, the DOGE/USDT pair may fall to the important support level at $0.12.
This is not true. If the price rises from where it is now and breaks above the moving averages, it will show that bulls are buying on dips. People who want to buy the pair will then try to push it above $0.17 and keep the up-move going to $0.22.
As of Feb. 10, Avalanche (AVAX) has dropped to the uptrend line, which means that traders who bought at low prices may be selling their stocks.
As of this writing, the 20-day EMA ($79) hasn’t changed. The RSI is just above the midpoint, which means there’s a good balance between supply and demand. If the price breaks and stays below $75.50, the chances of a drop to $64.85 and then to $61 go up.
Bulls will try again to get the price to go above a downtrend line if it moves back up from this level. If they do well, it will mean that the downtrend may be over. To then go up to $100 and then $117.53
This is how it looked when Polkadot (DOT) turned down from a downtrend line on February 8. It could now fall to the strong support at $16.81. Both moving averages have started to go down, and the RSI is in the negative zone, which means that the bears are in charge.
There could be more selling if the price falls below $16.81. The next major support is at $10.37. If the price rises above $16.81, the bulls will try to push the pair above the downtrend line. This isn’t true, though.
If they can do that, the pair could rise to the level of $23.19. A few more days could pass before the price moves down from here. Break and close above $23.19. The bulls are likely to take the lead.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.