BTC price continues to consolidate, a process which gives altcoin traders the opportunity to range trade and
BTC price continues to consolidate, a process which gives altcoin traders the opportunity to range trade and secure short-term gains.
Bitcoin (BTC) is attempting to form a higher low as investors take advantage of lower levels to accumulate. Twitter user PlanC recently highlighted that the balance of addresses having at least two significant incoming transactions but no outgoing transactions has soared to a 57 month high.
However, not everyone is bullish on the future prospects of Bitcoin. Popular analyst Ari Rudd presented three long-term technical setups, which point to further downside in Bitcoin. Rudd believes that Bitcoin could offer a buying opportunity in the $24,000 to $27,000 range.
Data compiled by Bloomberg shows that Bitcoin price has been calmer compared to the Nasdaq 100 index in 2022. There have been only five occasions this year when Bitcoin has moved more than one standard deviation from its average in either direction, while the Nasdaq 100 has seen 12 such moves.
Generally, periods of low volatility are followed by range expansion. Hence, traders may remain cautious because a sharp drop in the Nasdaq 100 could accelerate selling in Bitcoin.
Let’s study the charts of the top-10 cryptocurrencies to spot the critical support and resistance levels.
BTC/USDT
Bitcoin is attempting to rebound off the 20-day exponential moving average ($41,493), indicating that the sentiment has turned positive and traders are buying on dips.
The bulls will attempt to push and sustain the price above the overhead resistance at $45,821. If they manage to do that, the BTC/USDT pair will complete a bullish inverse head and shoulders pattern.
The pair could first rally to the psychological level at $50,000 and if this level is crossed, the rally may reach the stiff overhead resistance at $52,088.
Contrary to this assumption, if the price turns down from the current level or the overhead resistance, it will suggest that bears continue to sell on rallies. The pair could then drop to $39,600. The bears will have to pull the price below this support to gain the upper hand.
ETH/USDT
Ether (ETH) plunged below the 20-day EMA ($2,934) and re-entered the descending channel on Feb. 11, indicating selling at higher levels. A minor positive is that the price has been clinging to the 20-day EMA in the past two days.
The flattish 20-day EMA and the relative strength index (RSI) just below the midpoint suggest a balance between supply and demand. If the price breaks and sustains above the 20-day EMA, the buyers will make one more attempt to push the ETH/USDT pair above the overhead resistance zone at $3,283.66 to $3,411.43.
If they succeed, the pair will complete an inverted H&S pattern. This reversal setup has a target objective at $4,408.
On the other hand, if the price once again turns down from the overhead resistance, it will suggest that bears continue to sell on rallies. That will increase the prospects of a drop to the strong support at $2,652.
BNB/USDT
Binance Coin (BNB) broke and closed below the 20-day EMA ($407) on Feb. 11, indicating that traders who bought at lower levels may be booking profits.
However, a minor positive is that the bulls have not allowed the bears to have their way and are buying the dips below $400. The 20-day EMA is flat but the RSI has dropped near 47, suggesting a minor edge to the bears.
If the price sustains below $400, the possibility of a drop to $347.40 increases. This negative view will invalidate if the BNB/USDT pair turns up from the current level and breaks above the 50-day simple moving average ($439). The pair could then start its journey toward the psychological level at $500.
XRP/USDT
Ripple’s (XRP) sharp rebound off the breakout level at $0.75 turned down from $0.85, indicating that bears are selling on rallies. The bears will now attempt to pull the price below $0.75.
If they manage to do that, the selling could intensify as traders who bought at lower levels or on a break above $0.75 may rush to the exit. That could pull the XRP/USDT pair to $0.65 and then to $0.60.
On the other hand, if the price rises from the current level or rebounds off $0.75, it will suggest that bulls are accumulating near the breakout level. The buyers will then make one more attempt to resume the up-move by pushing the price above the $0.85 to $0.91 resistance zone.
ADA/USDT
Cardano (ADA) broke below the 20-day EMA ($1.11) on Feb. 11 and has reached the strong support at $1. The repeated retest of a support level tends to weaken it.
The downsloping moving averages and the RSI in the negative territory indicate that bears are in control. A break and close below $1 could signal the resumption of the…
cointelegraph.com