The price of Bitcoin is looking bleak, but traders are hoping that a bounce off the $42,000 support will complete a bullish technical analysis pattern and set the stage for a rise in Bitcoin and other cryptocurrencies.
Although Bitcoin (BTC) has given up some of its recent gains, on-chain data provider Ecoinometrics claims that whales are stockpiling because they feel the price is attractive in the long run.
Analyst Willy Woo feels that $33,000 represents a sturdy bottom for Bitcoin on the downside. According to popular Twitter trader Credible Crypto, who cited statistics from PlanC, the chances of Bitcoin falling below $30,000 are slim.
When compared to other digital currencies, Fidelity Digital Assets Head of Research Chris Kuiper feels that Bitcoin’s downside risk is modest, but that it might surge significantly if it succeeds in replacing gold as a store of value.
Could Bitcoin and other cryptocurrencies make a comeback following the latest sell-off? Let’s have a look at the charts of the top five cryptocurrencies that are likely to gain investor interest in the near future.
Bitcoin has fallen from the $45,456 overhead resistance, but the bulls have not allowed the price to fall below the 20-day exponential moving average ($41,383), which is a minor positive.
Bulls will try to push the BTC/USDT pair above $45,456 if price bounces off its present level. The bullish inverse head and shoulders pattern will be completed if the price closes above this level.
The pair might then rally to $52,088 before the bears launch a robust counter-attack. If bulls push the price over this level, the pair might begin its ascent to the pattern target of $56,904 in the north.
This bullish outlook will be shattered if the price falls below $39,600 and stays there. A move like this could result in a salary cut to $36,250.
The pair fell below the moving averages after turning down from $45,456. The bulls are currently seeking to preserve small support at $41,688.88, but the moving averages are providing tough resistance.
The pair might drop to $39,600 if the price drops from its current level and falls below $41,688.88. If the price bounces off this level, the pair could be range-bound for a few days between $39,600 and $45,456.
A break and closure above the moving averages on the upside will be the first sign that bulls have a little advantage. After that, the pair may rise to $43,920, and then to $45,456.
On February 7, Ripple (XRP) broke and closed above the moving averages, indicating that the downtrend may be ending. The bears attempted to drive the market down below the $0.75 breakout barrier, but the bulls thwarted them.
The bulls are attempting to push the XRP/USDT pair toward the overhead resistance at $1 after the price rebounded from $0.75. If the price breaks and closes above this barrier, it might lead to a rise to $1.41.
The moving averages are about to cross in a bullish direction, and the relative strength index (RSI) is in the green, indicating that buyers have the upper hand. On a break, this bullish view will be invalidated, and the price will close below $0.75. This indicates that bears will continue to sell on rallies.
The bulls and bears are slugging it out near the $0.82 mark on the 4-hour chart. The bulls were able to take the price over this level, but the bears halted the rally around $0.85, pulling the pair back below $0.82.
Bulls are buying the dips to the 50-SMA, which is a small positive. Bulls will try to push the pair over $0.85 and target the resistance at $0.91 if the price bounces off this support. A break and closure below the 50-SMA, on the other hand, might push the pair below $0.75. A break and closing below this support level could signal the beginning of a more serious decline.
On February 7, Crypto.com’s native coin (CRO) broke above the 50-day SMA ($0.47), indicating that the corrective phase may have ended. On February 10, the price rose to $0.54, where the bears are putting up a vigorous fight.
The moving averages are approaching a bullish crossover, and the RSI is in positive zone, indicating a modest advantage for the buyers. If the recent bounce from the moving averages continues, bulls will be buying on dips. After that, the bulls will try to push the price above $0.54 and restart the climb.
The CRO/USDT pair might rise to $0.60 and ultimately $0.68 if they succeed. In contrast to this notion, the pair might drop below $0.39 if the price drops and breaks below the 20-day EMA.
The pair is climbing inside an ascending channel pattern on the 4-hour chart. The bulls attempted to push the price above the channel, but the bears were having none of it. They trapped the aggressive bulls by pulling the price back into the channel.
The 50-SMA is being defended by the purchasers. If the price remains above the 20-EMA, bulls will attempt to push the pair above the channel’s resistance line. If the price falls below the channel’s support line, this optimistic outlook will be invalidated.
Inside an expanding configuration, FTX Token (FTT) has been erratic. Because buyers were unable to push the price over the resistance line, bears are selling rallies at this level.
Bulls are buying the dips in the zone between the 20-day EMA ($43.85) and the 50-day SMA ($41.50), which is a small positive. If the price rises above the current level, purchasers will try once more to break through the overhead barrier.
If they succeed, the FTT/USDT pair may begin a fresh upward trend. The pair could then rally to $53.50, where the bears might mount another strong assault, but if this barrier is overcome, the rally could extend to $65.
If the price falls below the 50-day SMA, this bullish view will be invalidated. That means the pair’s stay inside the broadening pattern could be extended for a few more days.
Short-term traders may have profited from the bulls’ failure to push the price over the $48 to $50 overhead resistance zone. The pair has broken below both moving averages and might fall to the Fibonacci retracement levels of 38.2 percent at $41.99.
If the price climbs from its present $41.99 level, it indicates that buyers are piling in on dips. The bulls will then aim to drive the price above the 50-day moving average once more. If they succeed, the duo may be able to take on the overhead resistance.
A break and closing below $41.99 on the negative could herald the start of a more serious decline to the 50% retracement mark at $39.95.
On February 10, Theta Network (THETA) broke and closed above the downtrend line, indicating that the downturn may be ending. A rally that breaks through a strong resistance level usually reverses and retests the breakout level.
If bulls are able to convert the breakout level into support, it might signal a shift in sentiment from sell on rallies to buy on falls. The 20-day EMA ($3.49) has begun to rise, and the RSI is in positive zone, indicating a buyer’s edge.
The bulls will seek to establish a new uptrend if the price bounces off the downtrend line. A break and closing above $4.39 could entice more buyers, pushing the THETA/USDT pair up to $6.
If the price falls below the downtrend line and turns down from its current position, this optimistic view will be invalidated. A move like this could indicate that the break above the downtrend line was a bull trap.
Within an ascending channel pattern, the pair has been rising. The bulls attempted to push the price over the channel’s resistance line, but the bears resisted. This could have prompted short-term bears to book profits, driving the price back toward the support line.
The price has bounced off the support line three times before, therefore the bulls will try to defend it one again. The restoration of the uptrend will be signalled if the price bounces off the level and rises above the downtrend line.
A break and closure below the channel’s support line, on the other hand, might imply a deeper correction to $3.20.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.