Bitcoin (BTC) started the 2022 on a losing note, dropping about 20% to its worst performance in January since 2018 when the price plunged 26.61%, acco
Bitcoin (BTC) started the 2022 on a losing note, dropping about 20% to its worst performance in January since 2018 when the price plunged 26.61%, according to on-chain analytics resource Coinglass.
Now, all eyes turn to February, which has historically favored the bulls. The only two negative closes in February were in 2020 and 2014.
One positive sign during the recent price decline has been that the long-term hodlers have not panicked. Glassnode data shows that the number of coins that last moved between five and seven years ago surged to a new all-time high.
El Salvador’s President Nayib Bukele projected a “gigantic price increase” for Bitcoin. Bukele’s prediction is based on the fact that if the millionaires of the world, who are more than 50 million in number, want to buy at least one Bitcoin, there isn’t enough supply to fulfill that demand.
Could Bitcoin and the major altcoins end the month on a strong note? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin has pulled back in a strong downtrend. In a sliding market, the sentiment is to sell on rallies rather than buy the dips as traders make more money on the downside.
The first sign of a change in sentiment will be a break and close above the 20-day exponential moving average ($39,318). Such a move will indicate that demand exceeds the supply near the 20-day EMA resistance. The BTC/USDT pair could then march toward the 50-day simple moving average ($43,791).
Conversely, if the price turns down from the current level or the 20-day EMA, it will suggest that bears are defending this level aggressively. The pair could then dip to $35,507.01. If this support cracks, the selling could pick up and the price could retest the Jan. 24 low at $32,917.17.
This is an important level for the bulls to defend because if it cracks, the pair could plummet to the strong support at $30,000.
ETH/USDT
Ether (ETH) is facing resistance near the breakdown level at $2,652 but a minor positive is that bulls have not given up much ground. This suggests that traders are buying the dips as seen from the long tail on today’s candlestick.
The bulls will now again try to push the price above $2,652 and the critical resistance at the 20-day EMA ($2,802). If they succeed, it will suggest that the selling pressure could be reducing. The bulls will then see an opening and attempt to push the pair to the resistance line of the channel.
Contrary to this assumption, if the price turns down from the current level or the 20-day EMA, the bears will attempt to pull the ETH/USDT pair to the $2,300 to $2,159 support zone. The bears will have to sink and sustain the price below this zone to clear the path for a further decline to $1,700.
BNB/USDT
Binance Coin (BNB) re-entered the channel on Jan. 25, but the recovery faltered near $400. This suggests that the bears have not yet given up and are selling on rallies.
If bears sink and sustain the price below the channel, the BNB/USDT pair could again retest the critical support zone at $330 to $320. The downsloping moving averages and the RSI in the negative territory indicate that sellers hold the edge.
The pair could plummet to $250 if the $320 support gives way as several traders are likely to panic and rush to the exit. This negative view will invalidate in the short-term on a break and close above the 20-day EMA. The pair could then rise to the resistance line of the channel.
ADA/USDT
The failure of the bulls to secure a meaningful rebound off the psychological support at $1 indicates a lack of aggressive buying at this level. The bears will now attempt to build upon their advantage and sink Cardano (ADA) below $1.
Both moving averages are sloping down and the RSI is in the negative zone, indicating that the bears are in command. A break and close below $1 could signal the start of the next leg of the downtrend.
The ADA/USDT pair could first drop to $0.80 and then to the support line of the channel. The bulls will have to push and sustain the price above the resistance line of the channel to signal a change in trend.
SOL/USDT
Solana (SOL) has been consolidating in a tight range between $80.83 and $104.82 for the past few days. The bulls tried to push the price above the range but failed and now the bears will try to grab the opportunity and attempt to pull the altcoin below $80.83.
If they succeed, the SOL/USDT pair could resume its downtrend. The pair could first drop to the support line of the channel where the bulls may attempt to arrest the decline. If they fail in their endeavor, the pair could plunge to $66.03.
On the contrary, if the price rebounds off $80.83, the pair may extend its stay inside the range for a few more days. The buyers may gain…
cointelegraph.com