Bitcoin (BTC) price edged up slightly over the weekend as bulls attempted to reverse the trend. On-chain analytics platform Whalemap highlights that $38,000 is a key zone for whales in any correction, as whales have been clustering in this zone over the past week.
On the upside, analyst Pentoshi believes Bitcoin could face stiff resistance near the open of 2022 around $46,000. However, if Bitcoin remains strong, Pentoshi expects altcoins to start rallying, especially as some of them have corrected sharply in recent months.
In the meantime, traders will likely be looking for clues in the US stock market as Bitcoin has shown a strong correlation with Nasdaq over the past few days.
Does Bitcoin’s Strong Rally Hint at a Trend Reversal? Can Improved Sentiment Pull Altcoins Higher? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin has slowly moved higher and reached the 50-day SMA ($42,809). The bears may attempt to defend this level as failure to do so will signal a reversal in trend.
BTC/USDT daily chart | Source: TradingView
The 20-day EMA ($40.008) is turning up and the Relative Strength Index (RSI) is in positive territory, showing that the bulls have a slight advantage. Above the 50-day SMA, the BTC/USDT pair can rally to $45.456. If the bulls break this barrier, the pair can retest the 200-day SMA ($49.175).
Alternatively, if the price turns down from the current level or $45.456, the bears will attempt to pull the price back below the $39,600 level. This is an important level to watch out for because if the bulls convert this level into support, it will show that a bottom has been hit.
On the other hand, a break and close below $39,600 could indicate that the current upmove could be a bear market rally (dead cat bounce).
Ether (ETH) continued to rise and hit the resistance line of the descending channel. The bears are expected to mount strong defenses between the resistance line and the 50-day SMA ($3,241).
ETH/USDT daily chart | Source: TradingView
However, the 20-day EMA is rising ($2.871) and the RSI is in positive territory, indicating an advantage for the buyers. If the bulls push the price above the 50-day SMA, the ETH/USDT pair can 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 shows that bears are active at higher levels. After that, the bears will try to drag the pair below the 20-day EMA. If successful, the pair can challenge the strong support at $2,652.
Binance Coin (BNB) surged above the 20-day EMA ($408) on Feb. 5, showing that the bulls are attempting a return. Buyers will now attempt to push the price above the channel resistance line and the 50-day SMA ($458).
Daily BNB/USDT Chart | Source: TradingView
If this is the case, it shows that the downtrend may have ended. The 20-day EMA has turned up and the RSI has surged into the positive territory, showing that the bulls have the upper hand.
Above the 50-day SMA, the BNB/USDT pair can rally to the psychological $500 level, where the bears can again generate stiff resistance.
This positive view will be invalidated if the price turns down from the resistance line. Such a move would show that the bears have not given up and will continue to sell on the rally. A break below the 20-day EMA suggests that the pair can remain in the channel for a few more days.
Cardano (ADA) bounced off the strong support at $1 and broke the 20-day EMA ($1.13) on Feb 4. the bulls didn’t waver.
Daily ADA/USDT Chart | Source: TradingView
This shows that the bulls are trying to defend the 20-day EMA. If the price surges above the 50-day SMA ($1.24), the ADA/USDT pair can rally to the resistance line of the descending channel.
A breakout and close above the channel can signal that the downtrend may be over. After that, the pair can rally to $1.60 and above it to the $1.87 resistance. This positive view will be invalidated on a breakout and close below $1, which could indicate a continuation of the downtrend.
Solana (SOL) broke the 20-day EMA ($112) on Feb 4, but the bulls are struggling to clear the overhead barrier at $116, showing that the bears are trying to break the overhead resistance defend.
Daily SOL/USDT chart | Source: TradingView
If the bears fail to quickly sink the price back below the 20-day EMA, the prospect of a rally to the resistance line of the descending channel increases. A break and close above the 200-day SMA ($146) could indicate that the downtrend is over.
Conversely, if the price turns down from the current levels or from the resistance line, it indicates that the bears should continue selling higher. After that, the SOL/USDT pair may extend its stay in the channel for a few more days.
Ripple (XRP) surged above the $0.65 resistance on Feb 4 and gained momentum to scale above the 50-day SMA ($0.75) on Feb 7. A close above the 50-day SMA would signal a possible trend reversal.
XRP/USDT daily chart | Source: TradingView
After that, the XRP/USDT pair might start its march north with the psychological target at $1. The 20-day EMA ($0.66) has started to rise and the RSI has jumped into positive territory, indicating that that the benefit belongs to the buyer.
This bullish view will be invalidated in the short term if the price turns down and stays below $0.75. Such a move would indicate that the bears will continue to sell at higher levels. After that, the pair can drop to the 20-day EMA.
Terra (LUNA) surged above the $54.20 resistance on Feb 5. The bears attempted to pull the price back below this level on February 6, but the bulls did not waver. The bulls are attempting to push the price above the 20-day EMA ($58.96).
Daily LUNA/USDT Chart | Source: TradingView
If they succeed, the LUNA/USDT pair might start its march north, targeting the resistance line of the descending channel. The bulls need to clear this barrier to signal a potential reversal.
Conversely, if the price turns down from the current level or from the resistance line, it suggests that the pair can continue to trade inside the channel. A break and close below the 200-day SMA ($47) could pave the way for a drop to the channel support line.
After struggling to sustain above the 20-day EMA ($0.14) on Feb 4-5, Dogecoin (DOGE) made a decisive move on Feb 6 and closed above resistance. This is the first sign that selling pressure may be easing.
Daily DOGE/USDT chart | Source: TradingView
The price has reached the 50-day SMA ($0.16), which could act as resistance. If the price turns down from the current levels but fails to retreat below the 20-day EMA, it will suggest a buy on the dip.
The bulls will then make another attempt to push the price above the 50-day SMA. If successful, the DOGE/USDT pair can rally towards the overhead resistance at $0.19. Contrary to this assumption, if the price breaks below the 20-day EMA, the pair can drop to $0.13.
Polkadot (DOT) broke out and closed above the 20-day EMA ($20.87) on Feb 5, but the bulls struggled to push the price above the breakdown at $22.66. The bears are likely to defend the zone between $22.66 and the 50-day SMA ($24.16).
DOT/USDT daily chart | Source: TradingView
If the price turns down from this zone, it shows that the bears are continuing to sell on the rally. The bears will then attempt to pull the price back below the 20-day EMA. If they succeed, the DOT/USDT pair can drop to $16.81.
Additionally, if the bulls push the price above the 50-day SMA, it will indicate a change in the short-term trend. After that, the pair can gradually climb to $28.60 and continue towards the overhead resistance at $32.78.
Avalanche (AVAX) surfaced above the 20-day EMA ($75.67) on Feb. 4, suggesting that the bears could lose their footing. The sellers managed to pull the price back below the 20-day EMA on February 5, but the bulls are holding.
AVAX/USDT daily chart | Source: TradingView
Buying resumed on February 6 and the AVAX/USDT pair hit the resistance line of the ascending channel. If the bulls push the price above the channel, the pair can start its journey towards the downtrend line.
The 20-day EMA is starting to rise and the RSI has jumped into positive territory, showing a slight advantage for the buyers. This positive view will be invalidated in the short-term if the price turns down and falls below the 20-day EMA. Such a move can pull the price down to the channel support line.
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.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…
Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…
Over the years, meme coins have evolved from inside jokes into serious investment opportunities.
Discover BlockDAG's five-tier bonus program's closing phases that enhance buyer holdings. Gain insights on the…
Discover why Qubetics, Solana, and Cardano are redefining the crypto landscape. Learn about milestones, price…
Discover why Qubetics, NEAR Protocol, and Immutable X are the best altcoins to join today,…
This website uses cookies.