Rising inflows into spot Bitcoin ETFs have increased investor sentiment towards the crypto market. This has likely been a factor in the rise of BTC price and altcoins like AVAX Coin. Could Bitcoin maintain its positive momentum and trigger further rallies in certain altcoins? Crypto analyst Rakesh Upadhyay examines the charts of the top 10 cryptocurrencies to find out.
Cryptocurrency market overview
Bitcoin is on the move and exchange-traded fund investors are supporting this rise by buying more. ETFs witnessed their third-largest inflows on February 8, totaling $403 million. This brings total inflows into ETFs since the launch on January 11 to over $2.1 billion. BlackRock and Fidelity’s spot Bitcoin ETFs have each accumulated more than $3 billion in assets under management.
cryptokoin.comAs you can follow from , the upward movement is not limited to Bitcoin only. Because certain altcoins also started to rise above their general resistance levels. This shows that sentiment is increasing across the entire crypto space.
BTC, ETH, BNB, SOL and XRP Coin analysis
Bitcoin (BTC) price analysis
The bears’ repeated failures over the past few days to sink the price below the 20-day exponential moving average ($43,352) enabled a strong buying by the bulls on February 7. Buyers asserted their dominance by pushing the price above the $44,700 resistance on February 8. This paves the way for a potential rally towards the psychologically important $50,000 level, where Bitcoin bears are expected to mount a strong defense.
However, if buyers fail to cede more ground above $50,000, it is possible for the rally to continue towards $52,000. The bears will regain control after the price declines and sustains below $41,884. In this case, it is possible for BTC to drop to $37,980 later.
Ethereum (ETH) price analysis
Ether broke above the $2,400 overhead resistance on February 7. Thus, the ascending triangle formation was completed. The bears attempted to push the price below the breakout level on February 8. However, the bulls held their ground. The target of the bullish formation is $2,632.
If the price declines from $2,632 but finds support at the 20-day EMA ($2,358), it would indicate positive sentiment. This will increase the chances of a move above $2,717. The bears will have to pull the price back below the moving averages to trap the aggressive bulls. It is possible that this will result in long liquidation, pushing ETH to $2,100.
Binance Coin (BNB) price analysis
BNB bounced off the 50-day SMA ($305) on February 7. As a continuation of this move, it rose above the bear trend line on February 8. Thus, it invalidated the descending triangle formation. The failure of a bearish pattern is a bullish sign as buyers waiting on the sidelines enter. Buyers pushed the price above $320, opening the doors for a retest of the $338 resistance. If it surpasses this level, it is possible for BNB to gain momentum and rise to $360.
Conversely, if the price turns down from the current level or $338, it will indicate profit booking at higher levels. A break below the moving averages indicates that BNB will oscillate between $288 and $338 for a while.
Solana (SOL) price analysis
Solana turned up from the moving averages on February 7. Now the bulls are trying to push the price above the stiff overhead resistance at $107. If they are successful, it will complete the SOL inverse head-and-shoulders formation. It is possible for SOL to first rise to $126, the December 25 high, and then rally towards the formation target of $135.
This positive view will be invalidated in the near term if SOL price declines sharply and breaks below $92. This is likely to start a downside move towards $79, where the bulls will likely enter.
Ripple (XRP) price analysis
The bears were unable to sink and maintain XRP below the $0.50 support. This shows that the bulls are defending the level. The price rose above the 20-day EMA ($0.52), which is an important level to watch in the near term. If buyers overcome this hurdle, it is possible for XRP to begin its journey towards the bear trend line. A breakout and close above this line will indicate that the bulls are back in the driver’s seat. XRP is likely to bounce to $0.67 later.
Important support on the downside lies at $0.50. A close below this level would indicate that the bears have the upper hand. It is possible that XRP may drop to $0.46 later.
ADA, DOGE, DOT and LINK, AVAX Coin analysis
Cardano (ADA) price analysis
The long tail on the Cardano February 7 candlestick indicates solid buying by the bulls near the critical support at $0.46. The bulls pushed the price above the 20-day EMA ($0.51) on February 8. It is now trying to challenge the downtrend line of the descending channel. If buyers clear this hurdle, a rally to $0.60 and then to $0.68 is possible for ADA.
This optimistic view will be invalidated in the near term if the price turns down from the downtrend line and breaks below the 20-day EMA. This will indicate aggressive sales in rallies. Moreover, ADA will keep its price within the channel for a while longer.
Avalanche (AVAX Coin) price analysis
AVAX Coin broke below the 20-day EMA ($34.92) on February 6. However, the bears were unable to sustain lower levels. This shows that traders see the declines as a buying opportunity. The bulls will try to strengthen their position by keeping the AVAX Coin price above the downtrend line of the channel. If they achieve this, it will indicate a short-term trend change. It is possible that AVAX Coin price could start a rise towards $44 and then towards the critical resistance at $50.
Time is running out for AVAX Coin bears. If they want to make a comeback, they will need to push the price of AVAX Coin below $32.30. AVAX Coin may then continue to oscillate within the descending channel for a few more days.
Dogecoin (DOGE) price analysis
DOGE continues to trade within the symmetrical triangle formation. It also indicates indecision between the bulls and bears regarding the next directional move. The bulls pushed the price above the 20-day EMA ($0.08) on February 7. Thus, it opened the doors for a possible rise to the bearish trend line. Sellers have defended this level fiercely in the past. Therefore, they will try to stop the rally at this level again.
If the price changes direction from the bearish trend line, it will indicate that DOGE will extend its stay in the triangle for a while longer. Conversely, if buyers break the bearish trend line, it is possible for DOGE to gain momentum and move higher towards the $0.10 to $0.11 resistance zone.
Polkadot (DOT) price analysis
The failure of the bears to sink and sustain Polkadot below the neckline of the head-and-shoulders formation may have attracted buyers who pushed the price above the 20-day EMA ($6.92) on February 7. DOT has reached the 50-day SMA ($7.40), which is likely to act as a strong resistance. Buyers will need to overcome this hurdle to demonstrate that the corrective phase is over. It is possible for DOT to move towards $8.58 later.
Alternatively, if the price declines sharply from the 50-day SMA, it would indicate that the bears are aggressively defending the level. DOT is likely to slide towards $6.50 and then $6 support later.
Chainlink (LINK) price analysis
LINK is consolidating after breaking the hard top resistance at $17.32 on February 2. The rising 20-day EMA ($16.87) and the RSI in the positive zone show that the bulls have an advantage. Buyers will try to stop the decline at the $17.32 breakout level. If this happens, the possibility of a resumption of the bull trend increases. It is possible for LINK to rise as high as $21.79 later.
On the contrary, if the price continues to decline and breaks below the 20-day EMA, it will indicate that the recent breakout could be a bull trap. LINK is likely to decline further to the 50-day SMA ($15.48).
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