Spot Bitcoin ETF demand remains strong. However, Bitcoin faced stiff resistance around $52,000. How will altcoins react? Could Bitcoin start a correction in the near term and push altcoins like AVAX Coin lower? Crypto analyst Rakesh Upadhyay examines the charts of the top 10 cryptocurrencies to find out.
An overview of the cryptocurrency market
‘cryptokoin.com’As you follow from, Bitcoin rose above $52,000 this week. Moreover, the rally shows no signs of tiring. This shows that the demand for Bitcoin continues at every high level. On-chain data analysis firm CryptoQuant states in a report that they estimate that “more than 75% of new investments in Bitcoin” come from spot Bitcoin ETFs. But nothing rises forever. Many analysts suspect the rally is overheating in the near term. It’s hard to pinpoint a top when momentum is strong. But every euphoric moment eventually reaches its peak, followed by a sharp correction.
Macroeconomic factors are likely to pose an obstacle to a market rally in the near term. On January 16, CME Group’s FedWatch Tool put the probability of a 25 basis point rate cut at the Federal Reserve’s March meeting at 63%, but the expectation was 10% after January Consumer Price Index and Producer Price Index figures were above market estimates. It dropped to .5.
BTC, ETH, SOL, BNB and XRP Coin analysis
Bitcoin (BTC) price analysis
Bitcoin is facing resistance near $52,000. However, the bulls did not give up ground to the bears. This shows that they are not in a hurry to reserve their profits. The upward sloping 20-day exponential moving average ($46,947) shows that the bulls have the upper hand. However, a relative strength index (RSI) above 81 indicates that the rally may have increased too quickly in the near term. If the price turns down from the current level and bounces back from $48,970, it would indicate that the bulls have turned the level into support. This will increase the likelihood of the upward movement continuing.
If the price stays above $52,000, a rally to $60,000 is possible. However, this too will likely present a formidable hurdle. Conversely, if BTC slides below the 20-day EMA, it will be in danger of a short-term reversal.
Ethereum (ETH) price analysis
The bulls pushed ETH above the $2,717 resistance on February 14. Thus, it showed that the uptrend had started again. The next target on the upside is the psychologically important $3,000 level. The sharp upward movement in the last few days has pushed the RSI into the overbought zone. This suggests that the rally is overheated in the short term.
This could result in a minor correction or consolidation in the next few days. A bounce in the price from $2,717 would signal that sentiment continues to rise. It will also indicate that traders view dips as a buying opportunity. Instead, if the price declines and breaks below $2,717, it would indicate that the bulls are losing control. It is possible that ETH could decline further to the 20-day EMA ($2,526).
Solana (SOL) price analysis
Solana returned lower at $119 on February 14. Now, the inverse head-and-shoulders formation is likely to retest the neckline at $107. If the price recovers from the neckline, it will indicate that the bulls have turned the level into support. This will increase the chances of a break above $126. SOL will then attempt a rally towards the $135 formation target.
Conversely, if the price falls below the neckline, it will indicate that the bears continue to sell in rallies. The bulls will again try to stop the decline in the moving averages. But if they fail in their efforts, it is possible for SOL to slide to $93.
Binance Coin (BNB) price analysis
Failure of a bearish pattern is a bullish sign, which proved to be true in the case of BNB. Buyers pushed the price above the descending triangle formation on February 8. Moreover, it followed this up by rising above the overhead resistance at $338 on February 15.
The long wick on the February 15 and February 16 candlestick shows that the bears are trying to stop the upward move near $366. Sellers will need to push the price below $338 to weaken the bulls. If they do so, it is possible for BNB to drop to the 20-day EMA ($322). Contrary to this assumption, if the price consolidates near the current level, it would indicate that the bulls expect the upward move to continue. A break above $366 will open the doors for a possible rise to $400.
Ripple (XRP) price analysis
XRP turned up from the 20-day EMA ($0.53) on February 14. It then broke above the 50-day SMA ($0.55) on February 15. Thus, it pointed to steady buying at higher levels. The price has reached the downtrend line, which is likely to witness a tough battle between bulls and bears. If the bulls prevail, it is possible for XRP to accelerate towards $0.67.
There is a minor resistance at around $0.62. But he is likely to overcome this. On the contrary, if the price declines sharply from the current level and breaks below the 20-day EMA, it will indicate that the bears are strongly defending the downtrend line. It is possible that XRP will drop to $0.50 from now on.
ADA, DOGE, LINK, DOT and AVAX Coin analysis
Cardano (ADA) price analysis
After struggling for a few days, Cardano gained momentum on February 14. It then climbed above the immediate resistance at $0.57. The rising 20-day EMA ($0.54) and the RSI in the positive zone suggest that the bulls have a slight advantage. A minor resistance lies at $0.62. However, it is likely to exceed this. It is possible that ADA could then rise to the stiff overhead resistance of $0.68.
The important support to watch on the downside is in the moving averages. A breakout and a close below the 50-day SMA ($0.53) would indicate that the recent breakout could be a bull trap. ADA is likely to fall to the solid support at $0.46 later.
Avalanche (AVAX Coin) price analysis
The bulls pushed AVAX Coin price above the overhead resistance at $42. However, they were unable to maintain higher levels, as seen from the long wick on the February 15 candlestick. AVAX Coin price is likely to drop below the 20-day EMA ($37.87), which is the first support line. If the price turns up from the 20-day EMA, the chances of a rally above $42 will increase.
If this occurs, AVAX Coin will complete the inverse H&S bullish formation, triggering a rally towards $50. On the contrary, if the price continues to decline and breaks below the moving average, it will indicate that the AVAX Coin price will oscillate between $32 and $42 for a while.
Dogecoin (DOGE) price analysis
DOGE turned up from the 20-day EMA ($0.08) on February 14. Moreover, it broke above the bearish trend line. Thus, it showed that the bulls were trying to take control. If the price remains above the downtrend line, it is possible for DOGE to gain momentum. Thus, it is likely to rise towards the $0.10 to $0.11 resistance zone.
Bears are expected to defend this territory fiercely. Alternatively, if the price drops and breaks below the 20-day EMA, it will indicate that each high has been sold. DOGE is likely to drop to the uptrend line and then the strong support at $0.07.
Chainlink (LINK) price analysis
LINK faces profit booking around $20.85. However, it is a positive sign that the bulls did not leave much room for the bears. This indicates that sentiment remains positive and traders expect the uptrend to continue.
The rising 20-day EMA ($18.41) and the RSI in the positive zone also indicate buyers’ advantage. A break above $20.85 could open the doors for a move towards the $21.79 formation target. The 20-day EMA is an important support to watch on the downside. If it breaches this level, it is possible for LINK to drop as low as $17.32.
Polkadot (DOT) price analysis
Polkadot has been trading above the 50-day SMA ($7.25) for the past two days. This indicates that the bulls are buying. The moving averages are on the verge of a bullish crossover and the RSI is in positive territory. This shows that the bulls are making a comeback.
The 20-day EMA ($7.20) is likely to act as support on declines. The bulls will try to push the price to $8.58. This optimistic view will disappear if the price drops sharply and breaks below the moving averages. In this case, it is possible that DOT will decline to $6. However, this will likely attract strong buying from the bulls.
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