BTC and altcoins flashed a few bullish signals today, but traders say $38,000 is still the level Bitcoin nee
BTC and altcoins flashed a few bullish signals today, but traders say $38,000 is still the level Bitcoin needs to close above before a reversal can begin.
Bitcoin (BTC) and several altcoins have bounced off their immediate support levels after buyers attempted to arrest the current decline. Bloomberg Senior Commodity Strategist Mike McGlone highlighted in a recent Tweet that Bitcoin was trading roughly 20% below its 50-week moving average and such discounted levels have “often resulted in good price support.”
The bearish price action of the past few days does not seem to have deterred the institutional traders from accumulating at lower levels. According to CoinShares’ Feb. 22 “Digital Asset Fund Flows Weekly” report, institutional investors pumped about $89 million into Bitcoin funds between Feb. 14 and Feb. 18, taking the total inflows in the current month to $178.3 million.
Crypto traders do not seem to be too scared by the current 50% correction. In a survey conducted by Deutsche Bank, only about 35% of the respondents said they would reduce their trading in an extremely bearish crypto market condition. A majority, more than 70%, said they planned to increase their crypto activity over the next six months.
Could Bitcoin and altcoins sustain the relief rally or will bears pounce and stall the recovery? Let’s analyze the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin bounced from the first support at $36,250 and the bulls will now attempt to push the price above the overhead resistance zone between $39,600 and the 50-day simple moving average ($40,615).
If they manage to do that, the BTC/USDT pair could rise to $45,821 where the bears are likely to mount a stiff resistance.
The long wick on today’s candlestick suggests that bears are attempting to flip $39,600 into resistance. The downsloping moving averages and the relative strength index in the negative territory suggest that bears have the upper hand.
A break and close below $36,250 will signal the resumption of the down move. The pair could then decline to $34,000 and later retest the Jan. 24 low at $32,917.
ETH/USDT
Ether (ETH) bounced off the psychological support at $2,500 on Feb. 22. The bulls have pushed the price above the breakdown level of $2,652, indicating strong buying at lower levels.
The buyers will now try to propel the price above the moving averages. If they succeed, the ETH/USDT pair could rally to the resistance line of the symmetrical triangle pattern. The bulls will have to push the price above the triangle to signal the start of a new uptrend.
Alternatively, if the price turns down from the moving averages, the bears will try to pull the pair below the support line of the triangle. If they manage to do that, it will suggest that the symmetrical triangle has acted as a continuation pattern. The pair could then drop to $2,159 and later to $2,000.
BNB/USDT
Binance Coin (BNB) bounced off the strong support at $350 on Feb. 22 indicating that bulls have not given up and they continue to buy at lower levels. The bulls will now attempt to drive the price above the downtrend line of the descending channel.
If they manage to do that, the BNB/USDT pair could rise to the 50-day SMA ($416). This is an important level for the bears to defend because a break above it could signal a possible change in trend. The pair could thereafter rise to $445.
Conversely, if the price turns down from the downtrend line, the bears will fancy their chances and make one more attempt to pull the pair below $350. If that happens, the pair could drop to the strong support zone at $330 to $320.
XRP/USDT
Ripple (XRP) bounced off $0.66 on Feb. 2 and the bulls pushed the price above the 50-day SMA ($0.72). The buyers will now attempt to clear the overhead hurdle at $0.75.
If they manage to do that, the XRP/USDT pair could rise to the downtrend line. The bulls will have to push the pair above this line to indicate that bulls are back in the game. The pair could then rally to $0.91.
Alternatively, if the price turns down from $0.75, it will suggest that bears have flipped the level into resistance. The bears will then attempt to pull the price below $0.66 and extend the decline to $0.60.
ADA/USDT
Cardano (ADA) has bounced off the strong support near $0.80, indicating that buyers are attempting to arrest the decline. The price could now reach the breakdown level at $1.
If buyers push and sustain the price above $1, it will suggest that the markets have rejected the lower levels. The bulls will then attempt to push the price to the resistance line of the descending channel. A break and close above the channel will signal a possible trend…
cointelegraph.com