Bitcoin (BTC) and Ether (ETH) are attempting to build on their recent rally as the US stock market attempts to extend the rally, helped by good results from Amazon. John Bollinger, the creator of Bollinger Bands recently tweets that Ether appears to be in a good position to accumulate.
Purpose ETF Bitcoin also saw its third-biggest inflow on Feb. 1, according to data Data by Glassnode. This suggests that traders may have started accumulating Bitcoin at lower levels.
Even though the crypto market is in a bearish phase, investor interest remains strong. Popular social media platform Stocktwits said They have partnered with FTX.US to launch crypto trading next quarter. The platform has over five million monthly active users. This may lead some new investors to start their crypto investing journey.
Does the Strong Move in Bitcoin and Select Altcoins Sign the Start of a New Uptrend? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin bounced off the minor support at $36,155.01 and the bulls pushed the price above the overhead resistance area between the 20-day EMA ($38,974) and $39,600.
BTC/USDT daily chart | Source: TradingView
If the price sustains above $39,600, buying can gather momentum and the BTC/USDT pair can rally to the 50-day SMA ($43,021). The bulls need to clear this barrier to signal a potential reversal.
Contrary to this assumption, if the price turns down from the current levels, it suggests that bears will continue higher. A break and close below $36,155.01 could open the way for a retest of the January 24 low of $32,917.17.
Ether turned down from the 20-day EMA ($2,795) on Feb 2nd and broke below the support at $2,652 on Feb 3rd, but the long tail on the daily candlestick bar shows active buying at the lower levels.
ETH/USDT daily chart | Source: TradingView
The 20-day EMA has flattened out and the Relative Strength Index (RSI) is just above the midpoint, showing that the bears are losing their footing. Continued buying by the bulls pushed the ETH/USDT pair above the 20-day EMA.
If the bulls sustain the price above the 20-day EMA, the pair can rally to the channel’s resistance line. A break above the 50-day SMA ($3.291) will show that the bulls are back in the driver’s seat.
This optimistic view will be invalidated if the price turns down from current levels and falls below $2,550. That could open the door for a drop towards the channel’s support line.
Binance Coin (BNB) has bounced off the minor support at $357.40, showing the bulls are buying at lower levels. They will now try to push the price above the 20-day EMA ($401).
BNB/USDT daily chart | Source: TradingView
If they succeed, the BNB/USDT pair could start a march towards the resistance line of the descending channel. A break and close above this resistance signals a trend reversal.
Conversely, if the price turns down from the 20-day EMA, it will show that sentiment remains negative and traders are selling on the bounce. After that, the bears will attempt to drag the pair below $357.4 and challenge the strong support at $330-$320.
Cardano (ADA) has been trading between the critical support at $1 and the 20-day EMA ($1.12) for the past few days. Trading in this tight range could result in a directional move soon.
Daily ADA/USDT Chart | Source: TradingView
A breakout and close above the 20-day EMA will be the first sign of buyers returning. After that, the ADA/USDT pair can rally to the resistance line of the descending channel, where the bears are likely to pose a major challenge. If the bulls break this barrier, the pair could signal a trend reversal.
Contrary to this assumption, when the price turns down from the moving averages, it shows that traders are selling to the upside. After that, the bears will attempt to pull the pair below $1 and if successful, the decline can extend to $0.80.
Solana (SOL) was rejected by the 20-day EMA ($110) on Feb 2, but the real body’s long tail from Feb 3 shows buying at lower levels. The bulls will continue their attempt to push the price above the $116 level.
Daily SOL/USDT chart | Source: TradingView
If successful, the SOL/USDT pair can rally to the resistance line of the descending channel. A breakout and close above the channel will signal a possible trend reversal. Alternatively, if the price turns down from the resistance line, the pair can trade inside the descending channel.
On the downside, $80.83 is a key support to watch as if it is broken, selling may further intensify and the pair may crash to the channel support line.
Ripple (XRP) continues to fluctuate randomly between $0.54 and $0.65. If the price surges above $0.65, it will show that the bulls are dominated by range bound action.
XRP/USDT daily chart | Source: TradingView
After that, the XRP/USDT pair can scale the 50-day SMA ($0.76), where the bears can create a strong resistance. A breakout and close above this resistance is the first indication that the trend may change.
Conversely, if the price turns down from $0.65, the range bound action may last for a few more days. The bears need to sink the price below the $0.54 support to show that the downtrend will resume. After that, the pair can retest the psychological support at $0.50.
Terra (LUNA) is trading between $43.44 (below) and $54.20 (above). The 20-day EMA ($59) is sloping down and the RSI is in the negative territory, showing that the bears have a slight advantage.
Daily LUNA/USDT Chart | Source: TradingView
If the price turns down from the $54.20 resistance, the range bound action is likely to continue for a few more days. A break and close below the $43.44 support may indicate the downtrend will resume. After that, the LUNA/USDT pair can drop to the critical support of $37.50.
Alternatively, if the bulls propel the price above $54.20, the pair can rally to the 20-day EMA, where the bears may face stiff resistance. The bulls need to clear this barrier to signal a potential reversal. The pair can then rally to the downtrend line of the channel.
Dogecoin (DOGE) continues its needless price action in the $0.13-$0.15 range. This shows that neither the bulls nor the bears are betting big and playing it safe.
Daily DOGE/USDT chart | Source: TradingView
The moving averages are sloping down and the RSI is in the negative territory, showing that the bears have a slight advantage.
If the price turns down from the 20-day EMA ($0.14), the bears will attempt to extend the downtrend by dragging the DOGE/USDT pair below $0.13. If successful, the pair can drop to the psychological support at $0.1.
The bulls need to push and sustain the price above the 50-day SMA ($0.16) to signal that the bears are losing their footing. After that, the pair can rally to $0.19.
Polkadot (DOT) is trading between the 20-day EMA ($20.47) and the strong support at $16.81. The weak recovery from the strong support area and inability to break the 20-day EMA shows that the bulls are not actively buying at the current levels.
DOT/USDT daily chart | Source: TradingView
Although the RSI is slightly up, it is still in negative territory. The moving averages continue to decline, showing that the bears are in charge. This shows that the bears can continue to strongly defend the 20-day EMA.
If the price turns down from the overhead resistance, the bears will attempt to drag the DOT/USDT pair below $16.81. If successful, the downtrend could resume. This negative view will be invalidated in the near term if the bulls push the price above the 20-day EMA. If so, the pair can rally to the 50-day SMA ($24.34).
Avalanche (AVAX) was rejected by the 20-day EMA ($73.58) on Feb 2, but a positive sign is that the bulls have held support at the uptrend line. This shows that sentiment is improving and traders are buying on slight dips.
AVAX/USDT daily chart | Source: TradingView
The bulls will now attempt to push the price above the break down at $75.50 where the bears are likely to create another strong resistance. If the bulls break this hurdle, the AVAX/USDT pair could start its journey towards the downtrend line.
If the price turns down from $75.50 contrary to this assumption, it will indicate that the bears will continue to sell on the rally. That can sustain the pair in the $75.50 area and the uptrend line. A break of the uptrendline can open the door for a drop to $60 and then $51.04.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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