Bitcoin (BTC) is attempting to bottom and whales appear to be helping it. Data from Coin Metrics shows whale addresses holding at least 1,000 bitcoins have accumulated over the past few days. The total supply of these addresses increased from 7.95 million bitcoin on January 24 to 8.096 million on February 10.
In another sign that investor sentiment could be turning positive, stablecoin balances on exchanges have surged above $27 billion for the first time, according to on-chain analytics platform CryptoQuant. Meanwhile, bitcoin balances on exchanges continue to fall, suggesting investors are hoarding their wealth.
Although Bitcoin is highly correlated with the US stock market in the short term, Zhu Su, co-founder of hedge fund Three Arrows Capital (3AC), said believe Their performance will be different in 2022. Zhu suggests that Bitcoin and Ether (ETH) are long-term contenders, while the S&P 500 are short-term contenders.
Is Bitcoin and Altcoins Recent Rally Coming to an End? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin turned down from the $45.456 resistance on Feb. 10, showing that the bulls remain aggressively defending this level. On a small plus, the bulls have not allowed the price to break below the 50-day SMA ($42.427).
BTC/USDT daily chart | Source: TradingView
This shows that the bulls are trying to convert the 50-day SMA into support. The 20-day EMA ($41.317) is rising and the Relative Strength Index (RSI) in positive territory is suggesting a slight advantage for the buyers.
If the price bounces off the current levels, the bulls will make another move to push the BTC/USDT pair above $45.456. If they succeed, the bullish momentum could strengthen and take the pair to $48,000 and then $52,088.
Contrary to this assumption, if the price turns down from the current levels or $45.456, the bears will take this opportunity to drag the pair below the 20-day EMA. In this case, the pair can drop to $39,600.
Ether broke out and closed above the 50-day SMA ($3,171) on Feb 9, but the bulls cannot build on that strength. The price returned below the 50-day SMA on Feb. 10, showing that the bears are trying to trap aggressive bulls.
ETH/USDT daily chart | Source: TradingView
However, a positive sign is that the bulls did not allow the price to return to the channel. If the price recovers from the 20-day EMA ($2.959), buyers will make another attempt to push the ETH/USDT pair above the overhead barrier.
The zone between the 50-day SMA and $3,400 could act as a key hurdle. If buyers break this barrier, the pair can start a new upward move.
Contrary to this assumption, if the price returns to the channel, it shows that sentiment remains negative and traders are selling on rallies. After that, the pair can drop to the critical support at $2,652.
Binance Coin (BNB) is struggling to break the downtrend line of the descending channel. This shows that the bears are defending the resistance area with all their might.
Daily BNB/USDT Chart | Source: TradingView
The flat 20-day EMA ($410) and the RSI near the middle are showing a balance between supply and demand. If the price breaks below the 20-day EMA, the prospect of staying inside the BNB/USDT pair’s channel for a few more days increases. Initially, the pair can slide to $390 and then further decline to $357.40.
On the other hand, if the price recovers from the current levels, the bulls will make another move to propel the pair above the channel and the 50-day SMA ($448). If they succeed, the pair can gradually climb to $500.
Ripple (XRP) is experiencing profit-taking after the recent rally. The price may fall to a breakout near $0.75 where buyers can step in to capitalize on the downside momentum.
XRP/USDT daily chart | Source: TradingView
The 20-day EMA is rising ($0.73) and the RSI in positive territory is showing that the bulls have the upper hand. Buyers will now attempt to defend the $0.75 support.
If the price recovers from this level, buyers will once again try to push the XRP/USDT pair above $0.92 and challenge the psychological resistance at $1.
This optimistic view will be invalidated in the near term if the price falls below the 20-day EMA. Such a move could open the door for a drop to $0.65.
Cardano (ADA) has been unable to break above the 50-day SMA ($1.22) for the past few days, showing that the bears are aggressively defending this level. The sellers will now attempt to sink and sustain the price below the 20-day EMA.
Daily ADA/USDT Chart | Source: TradingView
If they succeed, the ADA/USDT pair can drop to the critical $1 support. This is an important level for the bulls to defend as a break and close below this level can increase turnover. After that, the pair can slip to $0.80.
The moving averages have flattened out and the RSI is near the midpoint, indicating a balance between supply and demand. If the price bounces off the current levels and breaks above the 50-day SMA, the pair can rally to the resistance line of the descending channel. A break and close above this level will signal a positive trend reversal.
Solana (SOL) was rejected by the $116 resistance and it broke below the 20-day EMA ($111) on Feb 10.
Daily SOL/USDT chart | Source: TradingView
The SOL/USDT pair can now drop to $94 and then the strong support at $80.83. This is an important level for the bulls to defend as a break and close below this level could signal the continuation of the downtrend. After that, the pair can fall to the channel’s support line.
The first sign of a trend reversal occurs when the price breaks out and closes above the channel’s resistance line. Such a move could signal the start of a new uptrend. After that, the pair can rally to $157.80.
The bulls have consistently failed to push Terra (LUNA) above the 20-day EMA ($57.80) over the past few days, showing that the bears are aggressively defending this level. Hence, this becomes a key resistance to watch on the upside.
Daily LUNA/USDT Chart | Source: TradingView
The downsloping 20-day EMA and the RSI in the negative territory are showing that the bears have the upper hand. If the price stays below $54.20, the LUNA/USDT pair can slide to the strong support at $43.44.
This negative view will be invalidated if the price surges higher from the current levels and breaks $60.64. The pair could then rally to the downtrend line of the descending channel where the bears can again pose a strong challenge to the buyers.
The downtrend line is proving to be a difficult hurdle for the bulls to clear. This shows that the higher levels continue to attract selling from the bears. If Avalanche (AVAX) breaks below the 50-day SMA ($87), it can drop to the 20-day EMA ($80).
AVAX/USDT daily chart | Source: TradingView
If the price recovers from the 20-day EMA, it will show that traders are buying on the downside. The bulls will then try again to push the price above the downtrend line and start a new upward move. If they succeed, the AVAX/USDT pair can rally to $117.53.
Conversely, if the price falls below the support area between the 20-day EMA and $75.50, it will indicate that sentiment remains negative and traders will sell on the rally. After that, the pair can drop to $64.85.
Polkadot (DOT) slipped and closed below the 20-day EMA ($20.96) on Feb. 10, showing that the bears are testing the overhead resistance area between $22.66 and the 50-day SMA ($23 $.75) actively defend.
DOT/USDT daily chart | Source: TradingView
The flat moving averages and the RSI below 46 suggest that the bears have a slight advantage in the short-term. If the price sustains below the 20-day EMA, the DOT/USDT pair can slide to the strong support at $16.81. If the price recovers from this support, the pair is likely to remain range bound for a few more days.
Contrary to this belief, if the price surges up from the current levels and breaks above the 50-day SMA, it will indicate that the bears will lose the advantage. After that, the pair can rise to $28.
Dogecoin (DOGE)’s rally was thwarted by the 50-day SMA ($0.15) on Feb 9-10, showing that the bears are actively defending this resistance. Both the moving averages are flat and the RSI is near the midpoint, suggesting some short-term range-bound action.
Daily DOGE/USDT chart | Source: TradingView
If the price turns down and stays below the 20-day EMA ($0.15), traders who bought the recent decline may close their positions. This can pull the DOGE/USDT pair towards the strong $0.10 – $0.12 support area.
If the price instead recovers from the current levels, the buyers will make one more move to push the pair above the $0.17 resistance level. If they succeed, the pair can rally to $0.22.
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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