Bitcoin’s tight consolidation near $25,000 shows the bulls holding their positions in anticipation of a new 2023 high. Could certain altcoins, including Bitcoin and MATIC, continue to outperform US stock markets in the near term? Crypto analyst Rakesh Upadhyay is examining the charts to find out.
An overview of the cryptocurrency market
cryptocoin.comAs you follow, Bitcoin is up more than 11% in the last week and is trading near the key $25,000 resistance. In its latest update, monitoring resource Material Indicators highlighted that large volume traders are ‘scrutinizing’ overall resistance and that this could ignite a rally. As prices rise, individual trades can be drawn in and whales can use this opportunity to sell their hold positions at lower levels. Every uptrend witnesses several pullbacks and Bitcoin is no exception. However, the price action of the last few months shows a broad fundamental pattern that may be about to move up. If this happens, Bitcoin will signal a potential trend change.
There are very few cases where all indicators are bullish. If traders continue to wait for this to happen, they may miss out on a large part of the rally. Therefore, it is better to watch the price action closely and trade according to one’s money management principles. Generally, successful strategies are simple and easy to follow.
BTC, ETH, BNB and XRP analysis
Bitcoin (BTC): The bulls did not give up
BTC has been trading near the strong overhead resistance of $25,211 for the past four days. Although the bears successfully defended the level, the bulls did not give up. On February 20, they jumped at the opportunity again and bought at lower levels.
Generally, a consolidation near a strong overhead resistance breaks out to the upside. The rising moving averages and RSI above 65 also suggest that the bulls are in control. BTC could gain momentum if the price breaks above $25,250. No major resistance up to $31,000; so this journey could be completed in a short time. Initial support is at the 20-day EMA ($23,218) followed by $22,800. Sellers will have to quickly push the price below this support to weaken the bullish momentum. BTC could drop to $21,480 later.
Ethereum (ETH): Bears attempts blocked
Buyers pushed ETH above the overhead resistance of $1,680 on February 17, thwarting any attempts by the bears to push the price below the breakout level.
The upward sloping moving averages and the RSI in the positive zone indicate that the path of least resistance is to the upside. ETH could rise to $1,800 first and then continue its journey towards the next resistance at $2,000. Sellers are expected to fiercely defend the region between $2,000 and $2,200. This bullish view could be invalidated in the near term if the price drops from the current level and breaks below $1,460. ETH could then decline to the strong support at $1,352.
Binance Coin (BNB): Lower levels attract buyers
Sellers are trying to hold the $318 resistance but the bulls did not allow BNB price to stay below the moving averages. This suggests that lower levels are attracting buyers.
The price is holding on to the $318 resistance for the past two days, increasing the chances of a break above it. If this happens, BNB could rise towards the neckline of the inverted head-and-shoulders (H&S) pattern, where the bears could once again form a strong barrier. If buyers bulldoze, the pair could bounce as high as $360 and then continue its journey towards $400. The bears will have to push and sustain the price below the 50-day SMA ($300) to keep their chances of starting a deep correction alive.
Ripple (XRP): Bulls try to recover
XRP price is falling in a descending channel pattern. The 20-day EMA ($0.39) is flat, but the RSI has risen above 54, indicating that the bulls are trying to recover.
If the price rises and stays above the resistance line of the channel, XRP could start a rally towards the critical overhead level of $0.43. A break and close above this level could open the doors for a possible move to $0.51. On the contrary, if the price drops from the current level and stays below the moving averages, it indicates that the bears are not willing to give up without a fight. XRP could slide to $0.36 first, then to the support line of the channel.
ADA, MATIC, DOGE and SOL analysis
Cardano (ADA): Bulls buy lower
ADA is stuck between the neckline and the 20-day EMA ($0.38). This narrow range trading indicates that the bulls are buying the dips from the 20-day EMA as they anticipate a higher move.
The upward sloping moving averages and the RSI in the positive zone suggest that the bulls have the upper hand. A break and close above $0.42 will complete a bullish reversal H&S pattern. This setup could buy more and push the price towards $0.50. The target target of this reversal pattern is $0.60. Alternatively, if the price drops and dips below the 20-day EMA, it will give the bears an opportunity to make a comeback. ADA could slide to the strong support at $0.34 later.
Polygon (MATIC): In a strong uptrend
MATIC is in a strong uptrend. The bears tried to stop the upside around $1.57, but the shallow pullback shows that the bulls are not in a rush towards the exit.
The uptrend could resume if MATIC price rises from the current level and rises above $1.57. MATIC could rise to $1.70 later. This level is likely to pose a major hurdle. However, if the bulls push the price above this level, MATIC could continue its northward march and reach $2.10. The first major support to the downside is the 20-day EMA. Sellers will have to push the price below this support to slow the bullish momentum. MATIC could start a deeper correction towards $1.13 later.
Dogecoin (DOGE): Bulls and bears are fighting
The bulls and bears are witnessing a fierce battle near the moving averages. The fact that buyers do not allow DOGE to stay below the 50-day SMA ($0.08) indicates lower levels of demand.
The 20-day EMA ($0.09) has gradually started to rise and the RSI is just above the midpoint, signaling that the bulls have a slight advantage. If buyers push the price above $0.09 and sustain it, DOGE could rally to $0.10 and then $0.11. This level could act as an important resistance, but if exceeded, the next stop could be $0.15. On the downside, the $0.08 level is acting as a strong support. Any breach of this level could result in a retest of the critical support at $0.07.
Solana (LEFT): Time is running out for the bears
SOL’s resistance line acted as a major hurdle in the previous three cases. Therefore, a break and close above this will be the first indication that the downtrend may be coming to an end.
If the price stays above the resistance line, the SOL could rise to $39, where the bears can again make a strong defense. If the bulls turn the resistance line to support during the next pullback, the probability of SOL hitting $50 increases. Time is running out for the bears. If they want to regain the advantage, they will need to quickly stop the upside and push the price below the $19.50 support. If they do, SOL could drop to $15.
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