Bitcoin’s (BTC) price inched higher over the weekend as bulls try to enforce a trend change while bears attempt to stall the relief rally. On-chain mo
Bitcoin’s (BTC) price inched higher over the weekend as bulls try to enforce a trend change while bears attempt to stall the relief rally. On-chain monitoring resource Whalemap highlighted that $38,000 is the critical zone for the whales during any correction as whales had accumulated in this zone last week.
On the upside, trader Pentoshi believes that Bitcoin could face stiff resistance near the 2022 yearly opening price of about $46,000. However, if Bitcoin remains strong, Pentoshi expects altcoins to start performing, especially since several of them have corrected sharply in the past few months.
Meanwhile, traders are likely to look toward the US equity markets for clues as Bitcoin has shown a strong correlation with the Nasdaq in the past few days.
Does the sharp rebound in Bitcoin’s price indicate a trend change? Could the improving sentiment pull altcoins higher? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin gradually continued to move up and has reached the 50-day simple moving average (SMA)($42,809). The bears could try to defend this level because if they fail to do so, a trend change will be signaled.
The rising 20-day exponential moving average (EMA) ($40,008) and the relative strength index (RSI) in the positive zone indicate that bulls have a slight edge. Above the 50-day SMA, the BTC/USDT pair could rally to $45,456. If bulls clear this hurdle, the pair could retest the 200-day SMA ($49,175).
Alternatively, if the price turns down from the current level of $45,456, the bears will attempt to pull the price back below $39,600. This is an important level to watch out for because if bulls flip this into support, it will suggest that a bottom is in place.
On the other hand, a break and close below $39,600 could indicate that the current up-move may have been a bear market rally, which was sold into.
ETH/USDT
Ether (ETH) has continued to rise gradually and reached the resistance line of the descending channel. The bears are expected to mount a strong defense in the zone between the resistance line and the 50-day SMA ($3,241).
However, the rising 20-day EMA ($2,871) and the RSI in the positive territory indicate an advantage to buyers. If bulls thrust the price above the 50-day SMA, the ETH/USDT pair could rally to the 200-day SMA ($3,543).
Contrary to this assumption, if the price turns down from the current level or the 50-day SMA, it will suggest that bears are active at higher levels. The bears will then attempt to pull the pair below the 20-day EMA. If they succeed, the pair could challenge the strong support at $2,652.
BNB/USDT
Binance Coin (BNB) surged above the 20-day EMA ($408) on Feb. 5, indicating that bulls are attempting a comeback. The buyers will now attempt to push the price above the resistance line of the channel and the 50-day SMA ($458).
If they do that, it will indicate that the downtrend could be over. The 20-day EMA has turned up and the RSI has risen into the positive territory, indicating that bulls have the upper hand.
Above the 50-day SMA, the BNB/USDT pair could rally to the psychological level at $500 where the bears may again mount a strong resistance.
This positive view will invalidate if the price turns down from the resistance line. Such a move will indicate that bears have not given up and continue to sell on rallies. A break below the 20-day EMA could suggest that the pair may remain inside the channel for a few more days.
ADA/USDT
Cardano (ADA) bounced off the strong support at $1 and broke above the 20-day EMA ($1.13) on Feb. 4. The bears tried to pull the price back below the 20-day EMA on Feb. 5 and 6 but the bulls did not relent.
This indicates that bulls are attempting to defend the 20-day EMA. If the price rises above the 50-day SMA ($1.24), the ADA/USDT pair could rally to the resistance line of the descending channel.
A break and close above the channel could signal that the downtrend may be over. The pair could then rally to $1.60 and later toward the overhead resistance at $1.87. This positive view will be negated on a break and close below $1. Such a move could suggest the resumption of the downtrend.
SOL/USDT
Solana (SOL) broke above the 20-day EMA ($112) on Feb. 4 but the bulls have been struggling to clear the overhead hurdle at $116. This suggests that bears are attempting to defend the overhead resistance.
If bears fail to pull the price back below the 20-day EMA quickly, the prospects of a rally to the resistance line of the descending channel increase. A break and close above the 200-day SMA ($146) could indicate that the downtrend may be over.
Conversely, if the price turns down from the current level or the resistance line, it will suggest that bears continue…
cointelegraph.com