Although BTC and altcoins displayed a few optimistic indications today, traders believe Bitcoin must close over $38,000 before a reversal can commence.
After buyers sought to halt the current slide, Bitcoin (BTC) and numerous altcoins bounced off their immediate support levels. Bloomberg Senior Commodity Strategist Mike McGlone recently noted in a Tweet that Bitcoin was trading about 20% below its 50-week moving average, noting that such discounted levels “typically result in solid price support.”
The recent adverse market action does not appear to have deterred institutional investors from accumulating at lower levels. According to CoinShares’ Feb. 22 “Digital Asset Fund Flows Weekly” report, institutional investors invested approximately $89 million between Feb. 14 and Feb. 18, bringing the current month’s total inflows to $178.3 million.
Crypto traders do not appear alarmed by the current 50% correction. According to a Deutsche Bank survey, only roughly 35% of respondents indicated that they would restrict their trading under a very unfavorable crypto market environment. Within 70% of respondents indicated that they intended to increase their crypto involvement over the following six months.
Could Bitcoin and other cryptocurrencies sustain the relief rally, or will bears pounce and block the recovery? To learn more, let’s examine the charts of the top ten cryptocurrencies.
BTC/USDT
Bitcoin has rallied off the initial support level of $36,250, and bulls will now aim to push the price above the overhead resistance zone bounded by $39,600 and the 50-day simple moving average ($40,615).
If they succeed, the BTC/USDT pair may surge to $45,821, where the bears will almost certainly mount a solid resistance.
Today’s candlestick’s extended wick shows that bears are aiming to convert $39,600 into resistance. Moving averages on the downside and a relative strength index in the negative region indicate that bears have the upper hand.
A break and closure below $36,250 will indicate that the downtrend has resumed. The pair may next fall to $34,000 before retesting the January 24 low of $32,917.
ETH/USDT
On Feb. 22, Ether (ETH) bounced off psychological support at $2,500. The bulls have pushed the price over the $2,652 breakdown level, showing that there is significant buying at lower levels.
Buyers will now attempt to push the price higher above the moving averages. If they succeed, the ETH/USDT pair may rally to the symmetrical triangle pattern’s resistance line. Bulls must push the price above the triangle to initiate a new upswing.
Alternatively, if the price breaks below the moving averages, the bears will attempt to push the pair below the triangle’s support line. If they are successful in doing so, it will imply that the symmetrical triangle served as a continuation pattern. The pair may then fall to $2,159 and eventually to $2,000.
BNB/USDT
On Feb. 22, Binance Coin (BNB) rallied off the strong support level of $350, signaling that bulls have not given up and are continuing to buy at lower levels. The bulls will now seek to push the price above the descending channel’s downtrend line.
If they succeed, the BNB/USDT pair may advance to the 50-day simple moving average ($416). This is a critical level for bears to protect, as a break above it could signify a trend change. Following that, the pair might reach $445.
If, on the other hand, the price reverses from the downtrend line, the bears will take advantage of the opportunity and seek to push the pair below $350 once more. If this occurs, the pair may fall to the strong support zone between $330 and $320.
XRP/USDT
On Feb. 2, Ripple (XRP) rallied from $0.66, and bulls pushed the price above the 50-day simple moving average ($0.72). The buyers will now strive to overcome the $0.75 overhead obstacle.
If they are successful in doing so, the XRP/USDT pair may rise to the downtrend line. Bulls will need to push the pair above this line to signal their return to the game. After that, the pair might rally to $0.91.
If, on the other hand, the price reverses from $0.75, this indicates that bears have switched the level into resistance. The bears will then aim to drive the price below $0.66 and push it all the way to $0.60.
ADA/USDT
Cardano (ADA) has recovered from a solid support level near $0.80, indicating that buyers are attempting to halt the drop. The price may now approach the $1 breakdown level.
If buyers drive the price above $1 and hold it there, it indicates that the markets have rejected the lower levels. The bulls will then seek to drive the price to the descending channel’s resistance line. A break and closure above the channel will indicate the start of a new trend.
In contrast to this belief, a price decline below $1 indicates that bears have switched this level into resistance. Sellers will then attempt to drive the pair below $0.80, resuming the decline.
SOL/USDT
On Feb. 22, Solana (SOL) bounced off the $81 support level, showing that buyers are defending this level. The RSI is exhibiting the beginnings of a positive divergence, implying that the bearish momentum may be waning.
If buyers continue to push the price over the 20-day exponential moving average ($97), the SOL/USDT pair may rally to the resistance line of the falling channel. This level may operate as a significant stumbling block, but if bulls conquer it, the pair may rebound to $122.
If the price breaks and closes above this resistance, a double bottom pattern will be completed. This bullish setup has a goal of $163 as its aim. This bullish view will be rendered worthless if the price breaks below the 20-day EMA or the resistance line and falls below $81. This might pave the way for an additional fall to $66.
AVAX/USDT
Avalanche (AVAX) fell below its moving averages on Feb. 20, but the bears were unable to capitalize on their position. Strong purchasing near $67 triggered a rally, and the price has now reached the moving averages.
If buyers can push the price above the moving averages and keep it there, the AVAX/USDT pair may rally to the downtrend line. The bears are likely to strongly defend this level.
If the price breaks below the downtrend line but then bounces off the moving averages, this indicates that traders are buying on dips. This increases the likelihood of a break above the channel. If that occurs, the pair may first rise to $100 before rallying to $117.
If, on the other hand, the price reverses from its current level, bears will seek to push the pair below $67, resuming the downturn.
LUNA/USDT
Terra’s LUNA token broke and closed above the 20-day exponential moving average ($54) on Feb. 22, indicating that sellers’ hold may be eroding. Sustained buying has brought the price to the descending channel’s downtrend line.
The 20-day exponential moving average has flattened down and the RSI has entered the positive region, indicating a little advantage for buyers. A break and closure above the 50-day simple moving average ($62) will signal a likely trend reversal. The LUNA/USDT pair might then rebound to $70, where it may run against bearish resistance.
In contrast to this belief, a decline below the 50-day SMA indicates that bears are defending the overhead barrier. If the price bounces off the 20-day exponential moving average, this indicates that bulls are buying the dips. This increases the probability of a break above the 50-day simple moving average. This bullish perspective will be invalidated if bears manage to push the price below the 20-day exponential moving average.
DOGE/USDT
On Feb. 12, Dogecoin (DOGE) recovered from a solid support level of $0.12, indicating that bulls have not yet given up and are buying on dips.
Although the relief rally is likely to encounter significant resistance near the moving averages, the positive divergence on the RSI favors buyers. If bulls can drive the price above the 50-day simple moving average ($0.14), the DOGE/USDT pair might reach $0.17.
If this level is broken and closed above, a double bottom pattern with a target of $0.22 will be completed. If, on the other hand, the price diverges from the moving averages, the bears will take advantage of the opportunity and attempt to drop the pair below $0.12. If they are successful, the pair may fall to $0.10.
DOT/USDT
Polkadot (DOT) has rallied off the $15.80 support level, indicating that the bulls have not given up and are continuing to buy at lower prices. The RSI is indicating the beginnings of a positive divergence, implying that the selling momentum may be waning.
The DOT/USDT pair may now attempt a rally to the downtrend line, which will almost certainly act as a strong resistance. If the price breaks below this level, bears will seek to push the pair below $15.80 and resume the downturn.
Alternatively, if bulls can push the price above the downtrend line and the 50-day SMA ($21.14), the pair may advance to the overhead resistance level of $23.19. If the price breaks and closes above this level, a double bottom pattern will be completed.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
