Bitcoin’s (BTC) rally in 2023 has been boosted by expectations that the United States Federal Reserve will slow down the pace of its rate hikes as inflation has started cooling down. Some even anticipate a rate cut by the end of the year. That assumption received a jolt on Feb.3 when the U.S. employment data for January beat expectations and unemployment hit its lowest level since May 1969.
If markets do not react negatively to news perceived as bearish, it’s a sign that the sentiment has turned positive. Traders may then shift their focus to the next important economic data release. Trading firm QCP Capital said in its latest market update that the Consumer Price Index print on Feb. 14 could move markets. They believe the risks to the data are to the upside.
The current crypto bear market seems to have driven the institutional investors to the sidelines. According to a new survey conducted by JPMorgan, 72% of institutional traders said they do not plan to “trade crypto/digital coins” in 2023. Only 14% of the respondents showed an inclination to trade this year.
Will Bitcoin and altcoins witness profit booking in the near term? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin bounced off the $22,800 support on Feb. 1, indicating that bulls are buying the dips to this level. The bulls pushed the price above $24,000 on Feb. 2 but they could not sustain the higher levels.
The rising moving averages and the relative strength (RSI) in the overbought zone indicate that the path of least resistance is to the upside. If the price turns up from the current level or $22,800, the BTC/USDT pair could surge to $25,000. This level is likely to act as a formidable barrier.
The first sign of weakness will be a break and close below the 20-day exponential moving average ($22,279). That could trigger the stops of several short-term traders and the pair could then fall to $21,480.
ETH/USDT
Buyers propelled Ether (ETH) above the overhead resistance of $1,680 on Feb. 2 but they could not sustain the breakout. The price gave up all the gains on the day and closed below $1,680.
The upsloping 20-day EMA ($1,571) and the RSI in the positive territory indicate that bulls are in control. They may again attempt to overcome the overhead barrier at $1,680 and start the journey to $2,000. The $1,800 level may provide some resistance but it is likely to be crossed.
If bears want to gain the upper hand, they will have to sell aggressively and yank the price back below the 20-day EMA. If they can pull it off, the ETH/USDT pair may decline to $1,500 and if this support cracks, the pullback could eventually reach $1,352.
BNB/USDT
BNB’s (BNB) tight-range trading between the 20-day EMA ($306) and the overhead resistance at $318 resolved to the upside on Feb. 2.
Although bears sold the rally on Feb. 2, a positive sign is that the buyers did not allow the price to slide back below the breakout level of $318. This suggests that the bulls are trying to flip the $318 level into support. If they can pull it off, the BNB/USDT pair could skyrocket to $360 as there is no major barrier in between.
If bears want to halt the up-move, they will have to pull the price back below the 20-day EMA. The pair could then drop to the 50-day simple moving average ($276).
XRP/USDT
XRP (XRP) once again turned down from the $0.42 resistance on Feb. 2, indicating that bears are trying to protect this level.
The price is getting squeezed between the 20-day EMA ($0.40) and $0.42. This suggests a breakout may be around the corner. The gradually upsloping 20-day EMA and the RSI in the positive territory indicate that bulls have the upper hand. This increases the possibility of a break above $0.42. If that happens, the XRP/USDT pair could soar to $0.51.
Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, the decline could extend to the 50-day SMA ($0.37).
ADA/USDT
Attempts by the bears to sink Cardano (ADA) below the 20-day EMA ($0.37) failed on Feb. 1. The bulls fiercely defended the level as seen from the long tail on the candlestick.
The negative divergence on the RSI points to weakening momentum but the upsloping 20-day EMA suggests that buyers have the edge. If the price turns up from the current level, the bulls will again try to catapult the ADA/USDT pair toward the overhead resistance at $0.44.
On the contrary, if the price turns down and breaks below the 20-day EMA, it will signal that traders may be booking profits. That could open the doors for a potential drop to the 50-day SMA ($0.31).
DOGE/USDT
The long tail on Dogecoin’s (DOGE) Feb. 1 candlestick shows that the bulls aggressively purchased the dip to the 20-day EMA ($0.08). However, buyers…
cointelegraph.com