Spot Bitcoin ETF demand remains strong. But Bitcoin faced stiff resistance around $52,000. How will altcoins react? Could Bitcoin start a correction in the near term and push altcoins like AVAX Coin lower? Crypto analyst Rakesh Upadhyay examines the charts of the top 10 cryptocurrencies to find out.
An overview of the cryptocurrency market
‘Kryptokoin.com’ As you follow from, Bitcoin rose above $52,000 this week. Moreover, the rally shows no signs of tiring. This shows that the demand for Bitcoin continues at every high level. On-chain analytics firm CryptoQuant states in a report that they claim “more than 75% of new investments in Bitcoin” come from spot Bitcoin ETFs. But nothing rises forever. Many analysts suspect the rally is getting too hot in the near term. It’s hard to pinpoint a peak when momentum is strong. But every euphoric moment eventually reaches its peak and is followed by a sharp correction.
Daily cryptocurrency market performance. Source: Coin360It is possible that macroeconomic factors may pose an obstacle to a market rally in the near term. On January 16, CME Group’s FedWatch Tool put the probability of a 25 basis point rate cut at the Federal Reserve’s March meeting at 63%, but the expectation was 10% after January Consumer Price Index and Producer Price Index numbers remained above market expectations. It dropped to .5.
BTC, ETH, SOL, BNB and XRP Coin analysis
Bitcoin (BTC) price analysis
Bitcoin is facing resistance near $52,000. But the bulls did not leave any ground for the bears. This shows that they are not in a hurry to separate their profits. The upper sloping 20-day exponential moving average ($46,947) shows that the bulls have the upper hand. However, a relative strength index (RSI) above 81 indicates that the rally may have increased too quickly in the near term. If the price turns down from the current level and bounces back from $48,970, it would indicate that the bulls have turned the level into support. This will increase the possibility of the upper movement continuing.
If the price stays above $52,000, a rally to $60,000 is possible. However, this will probably constitute a severe obstacle. On the contrary, if BTC slides below the 20-day EMA, it will be in danger of a short-term reversal.
Ethereum (ETH) price analysis
The bulls pushed ETH above the $2,717 resistance on February 14. Thus, it showed that the upward trend had started again. The next target in the upper direction is the spiritually valuable $ 3,000 level. The sharp upward movement in the last few days has pushed the RSI into overbought territory. This shows that the rally has overheated in the short term.
This may result in a minor correction or consolidation in the next few days. A bounce in the price from $2,717 would be a sign that sentiment continues to rise. It will also indicate that traders view declines as a buying opportunity. Instead, if the price declines and breaks below $2,717, it would indicate that the bulls are losing control. It is possible that ETH could decline further to the 20-day EMA ($2,526).
Solana (SOL) price analysis
Solana returned lower at $119 on February 14. It is now possible for the opposing head-and-shoulders formation to retest the neckline at $107. If the price recovers from the neckline, it will indicate that the bulls have turned the level into support. This will increase the possibilities of a break above $126. SOL will then attempt to make a real rally to the $135 formation objective.
Conversely, if the price falls below the neckline, it will indicate that the bears continue to sell in rallies. The bulls will try to stop the decline in the moving averages again. But if they fail in their efforts, it is possible for SOL to slide to $93.
Binance Coin (BNB) price analysis
The failure of a bearish formation is a bullish sign that has proven to be real in the case of BNB. Buyers pushed the price above the descending triangle formation on February 8. Separately, it followed this by rising above the overhead resistance of $338 on February 15.
The long wick on the February 15 and February 16 candlestick shows that the bears are trying to stop the upside move around $366. Sellers will need to push the price below $338 to weaken the bulls. If they do so, it is possible for BNB to drop to the 20-day EMA ($322). Contrary to this assumption, if the price consolidates near the current level, it would indicate that the bulls expect the upper move to continue. A break above $366 will open the doors for a possible rise to $400.
Ripple (XRP) price analysis
XRP turned up from the 20-day EMA ($0.53) on February 14. Subsequently, it broke above the 50-day SMA ($0.55) on February 15. Thus, it pointed to steady buying at higher levels. The price has reached the downtrend line, which is expected to witness a fierce battle between bulls and bears. If the bulls prevail, it is possible for XRP to accelerate towards $0.67.
There is a minor resistance at around $0.62. But it’s possible he can overcome this. On the contrary, if the price drops sharply from the current level and breaks below the 20-day EMA, it will indicate that the bears are fiercely defending the downtrend line. It is possible for XRP to drop to $0.50 from now on.
ADA, DOGE, LINK, DOT and AVAX Coin analysis
Cardano (ADA) price analysis
Cardano gained momentum on February 14 after struggling for a few days. Subsequently, it climbed above the immediate resistance at $0.57. The rising 20-day EMA ($0.54) and the RSI in the positive zone suggest that the bulls have a slight advantage. A minor resistance lies at $0.62. But it is possible to exceed this. It is possible that ADA could then rise to the stiff overhead resistance of $0.68.
The important support to be watched in the downward direction is the moving averages. A breakout and a close below the 50-day SMA ($0.53) would indicate that the recent breakout could be a bull trap. It is possible that ADA could then fall to the solid support of $0.46.
Avalanche (AVAX Coin) price analysis
The bulls pushed AVAX Coin price above the overhead resistance at $42. However, they could not maintain higher levels, as seen from the long wick on the February 15 candlestick. AVAX Coin price is likely to drop below the 20-day EMA ($37.87), which is the first reinforcement line. If the price turns top from the 20-day EMA, the possibility of a move above $42 will increase.
If this occurs, AVAX Coin will complete the contrarian H&S bullish formation, triggering a true rally to $50. Conversely, if the price continues to decline and breaks below the moving average, it will indicate that the AVAX Coin price will oscillate between $32 and $42 for a while.
Dogecoin (DOGE) price analysis
DOGE turned up from the 20-day EMA ($0.08) on February 14. Additionally, it broke above the bearish trend line. Thus, it showed that the bulls were trying to take control. If the price remains above the downtrend line, it is possible for DOGE to gain momentum. Thus, a real rise to the $0.10 to $0.11 resistance zone is possible.
Bears are expected to defend this territory fiercely. Alternatively, if the price drops and breaks below the 20-day EMA, it will indicate that each high has been sold. DOGE is likely to drop to the uptrend line and then the strong support at $0.07.
Chainlink (LINK) price analysis
LINK faces profit booking around $20.85. However, it is a positive sign that the bulls did not leave much room for the bears. This shows that sentiment remains positive and traders expect the uptrend to continue.
The rising 20-day EMA ($18.41) and the RSI in the positive zone also indicate buyers’ advantage. A break above $20.85 could open the doors for a move towards the $21.79 formation. The 20-day EMA is a valuable support to watch on the downside. If it breaches this level, it is possible for LINK to drop as low as $17.32.
Polkadot (DOT) price analysis
Polkadot has been trading above the 50-day SMA ($7.25) for the past two days. This indicates that the bulls are buying. The moving averages are on the verge of a bullish crossover and the RSI is in positive territory. This shows that the bulls are making a comeback.
The 20-day EMA ($7.20) is expected to act as reinforcement on declines. The bulls will try to push the price to $8.58. This optimistic view will disappear if the price drops sharply and falls below the moving averages. In this case, DOT is likely to drop to $6. However, this will likely attract strong buying from the bulls.
