Bitcoin, Ethereum and select altcoins set to resume rally despite February slump

After the impressive rally in January, Bitcoin (BTC) seems to be taking a breather in February. This is a positive sign because vertical rallies are rarely sustainable. A minor dip could shake out the nervous longs and provide an opportunity for long-term investors to add to their positions.Has Bitcoin price bottomed?The opinion remains divided, however, on whether Bitcoin has bottomed out or not. Some analysts expect the rally to reverse direction and nosedive below the November low while others believe the markets will continue to move up and frustrate the traders who are waiting to buy at lower levels.Crypto market data daily view. Source: Coin360In an interview with Cointelegraph, Morgan Creek Capital Management founder and CEO Mark Yusko said “the crypto summer” could begin as early as the second quarter of this year. He expects risk assets to turn bullish if the United States Federal Reserve signals that it will slow down or pause interest rate hikes. Another potential bullish catalyst for Bitcoin is the block reward halving in 2024. Could the altcoins continue their up-move while Bitcoin consolidates in the near term? Let’s study the charts of Bitcoin and select altcoins that may outperform in the next few days.BTC/USDTBitcoin has been gradually correcting since hitting $24,255 on Feb. 2. This indicates profit booking by short-term traders. The price is nearing the strong support zone between $22,800 and $22,292. The 20-day exponential moving average ($22,436) is also located in this zone, hence the buyers are expected to defend the zone with all their might.BTC/USDT daily chart. Source: TradingViewThe upsloping 20-day EMA and the relative strength index (RSI) in the positive territory indicate that bulls have the edge. If the price turns up from the support zone, the bulls will again attempt to catapult the BTC/USDT pair to $25,000. This level should act as a formidable resistance.On the downside, a break below the support zone could trigger several stop losses and that may start a deeper pullback. The pair could first drop to $21,480 and if this support also fails to hold up, the next stop may be the 50-day simple moving average ($19,572).BTC/USDT 4-hour chart. Source: TradingViewThe 4-hour chart shows that the price is trading inside an ascending channel but the RSI has been forming a negative divergence. This suggests that the bullish momentum may be weakening. A break and close below the channel could tilt the short-term advantage in favor of the bears. The pair could then fall toward $21,480.Alternatively, if the price rebounds off the support line of the channel, the bulls will again attempt to kick the pair above the channel. If they manage to do that, the pair may resume its uptrend.ETH/USDTEther (ETH) has been trading near the $1,680 resistance for the past few days. Usually, a tight consolidation near an overhead resistance resolves to the upside. ETH/USDT daily chart. Source: TradingViewWhile the upsloping 20-day EMA ($1,586) indicates advantage to buyers, the negative divergence on the RSI suggests that the bulls may be losing their grip. If bulls want to assert their dominance, they will have to propel and sustain the price above $1,680. If they do that, the ETH/USDT pair may rally to $1,800. This level may again act as a resistance but if bulls do not allow the price to dip below $1,680, the rally may stretch to $2,000.Instead, if the price turns down and plummets below the 20-day EMA, the ETH/USDT pair could tumble to $1,500. This is an important support level to monitor because a bounce here could keep the pair range-bound between $1,500 and $1,680. On the other hand, if the $1,500 support cracks, the pair may dive to $1,352.ETH/USDT 4-hour chart. Source: TradingViewThe 4-hour chart shows that the bears have pulled the price below the 20-EMA. This is the first indication that the bulls may take a step back. There is a minor support at the 50-SMA but if it fails to hold, the pair may slide to $1,550 and then to $1,500.Conversely, if the price turns up from the moving averages, the bulls will again attempt to thrust the pair above the overhead resistance. If they succeed, the pair may resume the uptrend.OKB/USDTWhile most cryptocurrencies are well below their all-time high, OKB (OKB) hit a new high on Feb. 5. This suggests that bulls are in command.OKB/USDT daily chart. Source: TradingViewSome traders may book profits near the overhead resistance of $44.35 as it may act as a formidable resistance. If the price turns down from the current level but rebounds off the 20-day EMA ($37), it will suggest that bulls continue to buy the dips. That could increase the possibility of a break above $45. The OKB/USDT pair could first skyrocket to $50 and thereafter to $58.If the price turns down and breaks below the 20-day EMA, it will indicate that the traders may be rushing to the exit. The pair could then drop to $34 and later to the 50-day SMA ($30).OKB/USDT 4-hour chart. Source: TradingViewThe 4-hour chart shows that the bears are trying to protect the $44.35 level. The pair could turn down and reach the moving averages, which is an important support to keep an eye on. If the price bounces off the moving averages, the bulls will again try to overcome the barrier at $45 and start the next leg of the uptrend.Contrarily, if the price breaks below the 50-SMA, the selling could intensify and the pair may slump to $36 and then to $34. Such a move could delay the resumption of the uptrend. Related: Fantom’s 5-week winning streak is in danger — Will FTM price lose 35%?ALGO/USDTAlgorand’s (ALGO) recovery reached the breakdown level of $0.27 on Feb. 3. The bears defended this level but the bulls have not given up much ground. This suggests that the bulls expect the relief rally to continue.ALGO/USDT daily chart. Source: TradingViewThe upsloping 20-day EMA ($0.24) and the RSI in the positive territory indicate that bulls have the upper hand. If the price turns up from the 20-day EMA, the likelihood of a break above $0.27 increases. The ALGO/USDT pair could then travel to $0.31 where the bears may try to offer strong resistance.If the price turns down from this level but bounces off $0.27, it will suggest that the downtrend could be over in the short term. The pair could then attempt a rally to $0.38.This positive view could invalidate in the near term if the pair turns down from the current level and slides below $0.23. The pair could then dive to the 50-day SMA ($0.21).ALGO/USDT 4-hour chart. Source: TradingViewThe 4-hour chart shows that the bears are guarding the $0.27 level but a minor positive is that the bulls have not allowed the price to stay below the 50-SMA. If the price turns up from the current level, the bulls will again try to clear the overhead hurdle. If they do that, the pair could pick up momentum and surge toward $0.31.Contrary to this assumption, if the price continues and breaks below the moving averages, the pair risks a drop to $0.23. The bears will have to smash this support to gain the upper hand.THETA/USDTTheta Network (THETA) successfully completed a retest of the breakout level on Feb. 1, indicating that bulls have flipped the downtrend line into support.THETA/USDT daily chart. Source: TradingViewThe bulls will try to push the price to the overhead resistance at $1.20. This level may act as a minor hurdle but if bulls do not give up much ground from $1.20, the THETA/USDT pair could extend its up-move to $1.34. This is an important level for the bears to defend because if this resistance crumbles, the pair could soar to $1.65.If bears want to stop the bulls, they will have to quickly pull the price back below the 20-day EMA. The pair could then fall to $0.97 and later to the 50-day SMA ($0.89).THETA/USDT 4-hour chart. Source: TradingViewThe pair bounced off the $0.97 level, which becomes an important level to watch out for on the downside. A breach of this level is likely to tilt the advantage in favor of the bears and open the doors for a possible drop to $0.85.The rally is facing resistance near $1.20 but the upsloping 20-EMA and the RSI in the positive territory indicate that the path of least resistance is to the upside. If buyers push the price above $1.20, the momentum should pick up for a rally toward $1.34.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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Price analysis 2/3: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, DOT, LTC, AVAX

Bitcoin’s (BTC) rally in 2023 has been boosted by expectations that the United States Federal Reserve will slow down the pace of its rate hikes as inflation has started cooling down. Some even anticipate a rate cut by the end of the year. That assumption received a jolt on Feb.3 when the U.S. employment data for January beat expectations and unemployment hit its lowest level since May 1969.If markets do not react negatively to news perceived as bearish, it’s a sign that the sentiment has turned positive. Traders may then shift their focus to the next important economic data release. Trading firm QCP Capital said in its latest market update that the Consumer Price Index print on Feb. 14 could move markets. They believe the risks to the data are to the upside.Daily cryptocurrency market performance. Source: Coin360The current crypto bear market seems to have driven the institutional investors to the sidelines. According to a new survey conducted by JPMorgan, 72% of institutional traders said they do not plan to “trade crypto/digital coins” in 2023. Only 14% of the respondents showed an inclination to trade this year.Will Bitcoin and altcoins witness profit booking in the near term? Let’s study the charts of the top-10 cryptocurrencies to find out.BTC/USDTBitcoin bounced off the $22,800 support on Feb. 1, indicating that bulls are buying the dips to this level. The bulls pushed the price above $24,000 on Feb. 2 but they could not sustain the higher levels. BTC/USDT daily chart. Source: TradingViewThe rising moving averages and the relative strength (RSI) in the overbought zone indicate that the path of least resistance is to the upside. If the price turns up from the current level or $22,800, the BTC/USDT pair could surge to $25,000. This level is likely to act as a formidable barrier.The first sign of weakness will be a break and close below the 20-day exponential moving average ($22,279). That could trigger the stops of several short-term traders and the pair could then fall to $21,480.ETH/USDTBuyers propelled Ether (ETH) above the overhead resistance of $1,680 on Feb. 2 but they could not sustain the breakout. The price gave up all the gains on the day and closed below $1,680.ETH/USDT daily chart. Source: TradingViewThe upsloping 20-day EMA ($1,571) and the RSI in the positive territory indicate that bulls are in control. They may again attempt to overcome the overhead barrier at $1,680 and start the journey to $2,000. The $1,800 level may provide some resistance but it is likely to be crossed.If bears want to gain the upper hand, they will have to sell aggressively and yank the price back below the 20-day EMA. If they can pull it off, the ETH/USDT pair may decline to $1,500 and if this support cracks, the pullback could eventually reach $1,352.BNB/USDTBNB’s (BNB) tight-range trading between the 20-day EMA ($306) and the overhead resistance at $318 resolved to the upside on Feb. 2.BNB/USDT daily chart. Source: TradingViewAlthough bears sold the rally on Feb. 2, a positive sign is that the buyers did not allow the price to slide back below the breakout level of $318. This suggests that the bulls are trying to flip the $318 level into support. If they can pull it off, the BNB/USDT pair could skyrocket to $360 as there is no major barrier in between.If bears want to halt the up-move, they will have to pull the price back below the 20-day EMA. The pair could then drop to the 50-day simple moving average ($276).XRP/USDTXRP (XRP) once again turned down from the $0.42 resistance on Feb. 2, indicating that bears are trying to protect this level.XRP/USDT daily chart. Source: TradingViewThe price is getting squeezed between the 20-day EMA ($0.40) and $0.42. This suggests a breakout may be around the corner. The gradually upsloping 20-day EMA and the RSI in the positive territory indicate that bulls have the upper hand. This increases the possibility of a break above $0.42. If that happens, the XRP/USDT pair could soar to $0.51.Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, the decline could extend to the 50-day SMA ($0.37).ADA/USDT Attempts by the bears to sink Cardano (ADA) below the 20-day EMA ($0.37) failed on Feb. 1. The bulls fiercely defended the level as seen from the long tail on the candlestick.ADA/USDT daily chart. Source: TradingViewThe negative divergence on the RSI points to weakening momentum but the upsloping 20-day EMA suggests that buyers have the edge. If the price turns up from the current level, the bulls will again try to catapult the ADA/USDT pair toward the overhead resistance at $0.44.On the contrary, if the price turns down and breaks below the 20-day EMA, it will signal that traders may be booking profits. That could open the doors for a potential drop to the 50-day SMA ($0.31).DOGE/USDTThe long tail on Dogecoin’s (DOGE) Feb. 1 candlestick shows that the bulls aggressively purchased the dip to the 20-day EMA ($0.08). However, buyers failed to build upon this strength and overcome the barrier at $0.10.DOGE/USDT daily chart. Source: TradingViewThe DOGE/USDT pair is stuck between the 20-day EMA and $0.10. The gradually upsloping 20-day EMA and the RSI in the positive territory indicate that buyers have a slight edge. If the price once again rebounds off the 20-day EMA, the bulls will try to overcome the resistance at $0.10. If they manage to do that, the pair could rise to $0.11.On the other hand, if the price slips below the 20-day EMA, the pair could drop to the 50-day SMA ($0.08). This is an important level for the bulls to defend because if it cracks, the pair could retest $0.07.MATIC/USDTPolygon (MATIC) turned up from the breakout level of $1.05 on Feb.1 and reached above $1.25 on Feb. 2. The long wick on the day’s candlestick suggests that short-term traders may have booked profits at higher levels.MATIC/USDT daily chart. Source: TradingViewA positive sign is that the bulls did not cede ground to the bears and are attempting to push the price to the target objective at $1.30. This level may again act as a strong barrier but if buyers bulldoze their way through, the MATIC/USDT pair could reach $1.70.Alternatively, if the price turns down sharply from the current level, the MATIC/USDT pair could drop to $1.05. This is an important level to keep an eye on because a bounce off it could keep the pair range-bound between $1.05 and $1.30 for a few days. Related: Bitcoin’s big month: Did US institutions prevail over Asian retail traders?LTC/USDTLitecoin (LTC) continued its northward march and skyrocketed above the psychological level of $100 on Feb. 1. This rise may have tempted short-term traders to book profits.LTC/USDT daily chart. Source: TradingViewThe LTC/USDT pair could enter a minor correction but the bulls are likely to buy the dip to the 20-day EMA ($90). If the price turns up from the current level or rebounds off the 20-day EMA, the bulls will try to extend the up-move to $107.This positive view could invalidate in the near term if the price turns down and breaks below the 20-day EMA. Such a move will indicate that the bulls may be rushing to the exit. The pair could then slump to $81 and later to $75.DOT/USDTPolkadot (DOT) bounced off the 20-day EMA ($6.21) on Feb. 1 and broke above the overhead resistance of $6.84 on Feb. 2. The bulls could not maintain the higher levels as seen from the long wick on the Feb. 2 candlestick.DOT/USDT daily chart. Source: TradingViewA positive sign is that the bulls did not allow the price to break back below the resistance line. This indicates that traders are trying to flip this level into support. Buyers will have to sustain the price above $7 to gain control. The DOT/USDT pair could then surge to $8 where it may face strong resistance from the sellers.If bears want to regain control, they will have to quickly sink the price back below the 20-day EMA. The pair could then enter a corrective phase and plummet to $5.50.AVAX/USDTAvalanche (AVAX) soared above the overhead resistance at $22 on Feb. 2 but the long wick on the day’s candlestick shows that bears are selling on rallies.AVAX/USDT daily chart. Source: TradingViewThe rising moving averages suggest that bulls are in command but the negative divergence on the RSI indicates that the momentum may be weakening. If buyers do not give up much ground from the current level, the likelihood of a break above $22 increases. The AVAX/USDT pair could then attempt a rally to $30.Contrarily, if the price slips below $20.50, the pair could reach the resistance line. The bears will have to sink the pair below this support to tilt the advantage in their favor. The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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