Bitcoin (BTC) and Ether (ETH) are attempting to build upon their recent recovery as the U.S. equity markets try to resume their relief rally, backed b
Bitcoin (BTC) and Ether (ETH) are attempting to build upon their recent recovery as the U.S. equity markets try to resume their relief rally, backed by strong results by Amazon. Bollinger Bands creator John Bollinger recently tweeted that Ether looked to be in a good spot to be added to his existing long positions.
The Purpose Bitcoin exchange-traded fund also witnessed its third-largest inflow on Feb. 1, according to Glassnode data. This suggests that traders may have started accumulating Bitcoin at lower levels.
Even though crypto markets are reeling under a bear phase, investor interest remains strong. Popular social media platform Stocktwits said that it has partnered with FTX.US to launch its crypto trading next quarter. The platform boasts 5 million monthly active users. This could result in several new investors starting their crypto investment journey.
Does the strong move in Bitcoin and select altcoins indicate the start of a new uptrend? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin bounced off the minor support at $36,155.01 and the bulls have pushed the price above the overhead resistance zone between the 20-day exponential moving average ($38,974) and $39,600.
If the price sustains above $39,600, buying could pick up momentum and the BTC/USDT pair could rally to the 50-day simple moving average ($43,021). The bulls will have to clear this hurdle to signal a possible change in trend.
Contrary to this assumption, if the price turns down from the current level, it will suggest that bears continue to sell on rallies. A break and close below $36,155.01 could clear the path for a retest of the Jan. 24 intraday low at $32,917.17.
ETH/USDT
Ether turned down from the 20-day EMA ($2,795) on Feb. 2 and dipped below the support at $2,652 on Feb. 3 but the long tail on the day’s candlestick suggests aggressive buying at lower levels.
The 20-day EMA has flattened out and the relative strength index (RSI) is just above the midpoint, indicating that bears are losing their grip. Sustained buying by the bulls has driven the ETH/USDT pair above the 20-day EMA.
If bulls sustain the price above the 20-day EMA, the pair could rise to the resistance line of the channel. A break above the 50-day SMA ($3,291) will indicate that bulls are back in the driver’s seat.
This bullish view will invalidate if the price turns down from the current level and plummets below $2,550. That could open the doors for a decline to the support line of the channel.
BNB/USDT
Binance Coin (BNB) rebounded off the minor support at $357.40, indicating that bulls are buying at lower levels. The bulls will now attempt to push the price above the 20-day EMA ($401).
If they manage to do that, the BNB/USDT pair could start its northward march toward the resistance line of the descending channel. A break and close above this resistance will signal a possible trend change.
Conversely, if the price turns down from the 20-day EMA, it will suggest that the sentiment remains negative and traders are selling on rallies. The bears will then try to pull the pair below $357.4 and challenge the strong support zone at $330 to $320.
ADA/USDT
Cardano (ADA) has been trading between the critical support at $1 and the 20-day EMA ($1.12) for the past few days. This tight-range trading is likely to result in a directional move soon.
A break and close above the 20-day EMA will be the first sign that the buyers are back in the reckoning. The ADA/USDT pair could then rise to the resistance line of the descending channel where the bears are likely to pose a stiff challenge. If the bulls overcome this hurdle, the pair could signal a trend change.
Contrary to this assumption, if the price turns down from the moving averages, it will suggest that traders are selling on rallies. The bears will then try to pull the pair below $1. If they manage to do that, the decline could extend to $0.80.
SOL/USDT
Solana (SOL) turned down from the 20-day EMA ($110) on Feb. 2 but the long tail on the Feb. 3 candlestick suggests buying at lower levels. The bulls will again endeavor to push the price above the breakdown level at $116.
If they succeed, the SOL/USDT pair could rally to the resistance line of the descending channel. A break and close above the channel will signal a possible change in trend. Alternatively, if the price turns down from the resistance line, the pair could continue to trade inside the descending channel.
On the downside, $80.83 is the critical support to watch out for because if it cracks, the selling could intensify further and the pair may plummet to the support line of the channel.
XRP/USDT
Ripple (XRP) continues its random price action between $0.54 and $0.65. If the price breaks…
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