Bitcoin (BTC) is attempting to bottom out and whales seem to be helping it do that. Coin Metrics data shows that whale addresses holding at least 1,00
Bitcoin (BTC) is attempting to bottom out and whales seem to be helping it do that. Coin Metrics data shows that whale addresses holding at least 1,000 Bitcoin have been accumulating in the past few days. The total supply of these addresses rose from 7.95 million Bitcoin on Jan. 24 to 8.096 million on Feb. 10.
Another sign that investor sentiment could be turning positive is that crypto exchange balances of stablecoins have soared above $27 billion for the first time, according to on-chain analytics platform CryptoQuant. In comparison, Bitcoin reserves on the exchanges have continued to slide, indicating that investors are stashing their holdings.
Although Bitcoin has been closely correlated with the U.S. equity markets in the short term, Zhu Su, co-founder of hedge fund Three Arrows Capital (3AC), believes their performance will diverge in 2022. Zhu suggested that Bitcoin and Ether (ETH) are candidates for going long while the S&P 500 is a short candidate.
After the recent recovery in Bitcoin and altcoins, is it time for a minor correction or consolidation? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin turned down from the overhead resistance at $45,456 on Feb. 10, indicating that bulls continue to defend the level aggressively. A minor positive is that bulls have not allowed the price to break below the 50-day simple moving average ($42,427).
This indicates that bulls are attempting to flip the 50-day SMA into support. The rising 20-day exponential moving average ($41,317) and the relative strength index (RSI) in positive territory indicate a slight advantage to buyers.
If the price bounces off the current level, the bulls will make one more attempt to push the BTC/USDT pair above $45,456. If they succeed, the bullish momentum could pick up and the pair may rise to $48,000 and later to $52,088.
Contrary to this assumption, if the price turns down from the current level or from $45,456, the bears will fancy their chances and attempt to pull the pair below the 20-day EMA. If that happens, the pair could drop to $39,600.
ETH/USDT
Ether broke and closed above the 50-day SMA ($3,171) on Feb. 9, but the bulls could not build upon this strength. The price turned back below the 50-day SMA on Feb. 10 which suggests that bears are attempting to trap the aggressive bulls.
However, a positive sign is that the bulls have not allowed the price to break back into the channel. If the price rebounds off the 20-day EMA ($2,959), the buyers will again attempt to push the ETH/USDT pair above the overhead hurdle.
The zone between the 50-day SMA and $3,400 could act as a major roadblock. If buyers clear this hurdle, the pair could start a new up-move
Contrary to this assumption, if the price re-enters the channel, it will suggest that sentiment remains negative and traders are selling on rallies. The pair could then drop to the critical support at $2,652.
BNB/USDT
Binance Coin (BNB) is struggling to break above the downtrend line of the descending channel. This suggests that bears are defending the resistance with all their might.
The flattish 20-day EMA ($410) and the RSI near the midpoint suggest a balance between supply and demand. If the price breaks below the 20-day EMA, it will increase the prospects of the BNB/USDT pair staying inside the channel for a few more days. The pair could first slip to $390 and then continue its downward move to $357.40.
On the contrary, if the price rebounds off the current level, the bulls will make one more attempt to propel the pair above the channel and the 50-day SMA ($448). If they succeed, the pair could gradually rise to $500.
XRP/USDT
Ripple (XRP) is witnessing profit-booking after the recent rally. The price could drop to the breakout level at $0.75 where the buyers may step in to arrest the decline.
The rising 20-day EMA ($0.73) and the RSI in the positive territory indicate that bulls have the upper hand. The buyers will now attempt to defend the support at $0.75.
If the price rebounds off this level, the buyers will again attempt to drive the XRP/USDT pair above $0.92 and challenge the psychological resistance at $1.
This bullish view will invalidate in the short term if the price breaks below the 20-day EMA. Such a move could open the doors for a decline to $0.65.
ADA/USDT
Cardano (ADA) has repeatedly failed to break above the 50-day SMA ($1.22) in the past few days, indicating that bears are defending this level with vigor. The sellers will now attempt to sink and sustain the price below the 20-day EMA.
If they manage to do that, the ADA/USDT pair could drop to the critical support at $1. This is an important level for the bulls to defend because a break and close below it could intensify selling. The…
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