Strong institutional demand has led to phenomenal breakthroughs for Bitcoin and many altcoins, with all-time highs in the coin.
According to a document given to the Securities and Exchange Commission, Bitcoin (BTC) reached an all-time high today with the news that Tesla bought Bitcoin for $ 1.5 billion.
In addition to buying Bitcoin, Tesla plans to offer its customers the option to purchase artifacts with BTC. Tesla may decide to add BTC payments to its reserves rather than convert it to fiat.
In addition to Tesla’s buyout, legendary investor Bill Miller plans to move more towards Bitcoin by investing more than $300 million in Grayscale Bitcoin Trust. These purchases by major investors even after Bitcoin’s sharp rally show that investors and traders expect the rise to continue further. As
Kriptokoin.com , Mexico’s wealthiest third person, Ricardo Salinas Pliego, added the Bitcoin hashtag to his Twitter bio. This move by Salinas brings Bitcoin to the attention of his 840,000 followers who might want to impersonate the billionaire by buying Bitcoin. Salinas announced in November that he has invested 10% of his “liquid portfolio” in Bitcoin.
These developments have given a positive reinforcement to the fundamentals in the cryptocurrency department. With a big afterwind, let’s analyze the charts of the top 10 cryptocurrencies to reach possible target levels on the upside.
BTC/USD
Bitcoin has been stuck in the middle of $38,000 and $40,000 for the past two days. The long wick on the February 6 candlestick indicated that traders were buying profits at higher levels, while the long tail on the February 7 candlestick signaled to buy on the declines.
Bulls pushed the price above the overhead resistance of $41,959.63 today. This level paves the way for a rally to the record price target of $50,000, where the bears may again face stiff resistance.
But if the bulls can push the price above $50,000, the BTC/USD pair could rise to $60,974.43.
Contrary to this assumption, if the bulls are not able to sustain their breakthrough, it will show that the traders are making higher profits. The bears will then try to push the price below $38,000.
If they are successful, it is possible to test the moving averages again. A break below the 20-day exponential moving average ($36,196) will be the first sign of weakness, and a drop below the 50-day easy moving average ($33,250) will increase the possibility of a deeper correction.
ETH / USD
Ethereum (ETH) dropped from $1,757 on February 5 but bulls are in an aggressive form on February 7 at $1,474 as seen from the long tail on the day’s candlestick bought the bearish level.
The upper sloping moving averages and the RSI in the positive zone indicate that the path of least resistance is on the upside.
If the bulls can sustain the price above $1,757, the ETH/USD pair may resume its uptrend. The next target on the upside is $1,870 and if this level is crossed, the upper move could reach the critical level spiritually at $2,000.
Rather, if the price drops from the current level, the pair could consolidate for a few more days in the middle of $1,757 to $1,473. A break below $1,473 could push the price towards the 50-day SMA ($1,148).
ADA/USD
Cardano (ADA) gained momentum after breaking above the ascending channel on Feb. The bulls easily pushed the price above the immediate resistance of $0.60 on February 6, which extended the rally possibility to $0.80.
While the rising moving averages give the bulls an advantage, the RSI in the overbought zone is warning of a possible correction or consolidation in the near term.
A consolidation will show that traders are not taking profits quickly, which will increase the likelihood of a resumption of the uptrend.
On the other hand, a correction could reach the 20-day EMA ($0.454). A strong rebound indicates that the uptrend remains intact, while a break below it indicates that the momentum is weakening.
XRP/USD
XRP has been hovering above $0.3850 for the past few days, but bulls are struggling to push the price above $0.50. This indicates that demand is decreasing at higher levels.
The bears tried to push the price below the $0.3855 support on Feb. 7 but failed. This indicates that the bulls are buying lows. When bears sell on rallies and bulls buy on dips, price is stuck in a range.
A break and close above $0.50 could initiate an upper move that could reach $0.65, while a break below the 20-day EMA ($0.374) would set the XRP/USD pair to the 50-day EMA ($0.312). ) can be downloaded.
DOT/USD
The failure of the bears to push the price below $19.40 drew strong buying from the bulls. This raised Polkadot (DOT) to an all-time high today.
The instant target on the upside is $24.08 and if this level is exceeded, the uptrend may extend to $30. Both moving averages are rising and the RSI is close to the very buy zone, indicating that the bulls are in control.
This positive view will be invalidated if the DOT/USD rate reverses direction and falls below the 20-day EMA ($17.91). Such a move could push the price to the next support at $14.7259.
BNB/USD
Binance Coin (BNB) rallied above the resistance line of the expanding wedge pattern on Feb. 5, invalidating the bearish setup. The bears are trying to stop the current uptrend at $75, but the positive sign is that the bulls haven’t given up too much of the bottom.
Following a shallow correction on February 7, the bulls are currently trying to continue the uptrend. A break and close above $75.5 could push the BNB/USD pair to $95 and subsequently to $100.
Conversely, if the price drops from $75.5 again, the bears will try to push the pair back into the wedge. If they are successful, it will offer higher levels of profit taking.
LTC/USD
Litecoin (LTC) had consolidated between the 20-day EMA ($144.98) and $160 for the past few days. The bulls are currently trying to reverse this tight trading range. If they manage a close above $160, the altcoin could rally to $185.
If the bulls can propel the price above $185, the LTC/USD pair could resume the uptrend and continue higher towards $200. Contrary to this assumption, if the price drops from overhead resistance, the pair could drop back to the 20-day EMA.
A breakout and close below the moving averages will be the first sign of weakness. Such a move could push the price towards $120.
DOGE / USD
Dogecoin’s pumping faced strong selling at $0.0875 on January 28 and 29. Although the altcoin tumbled on Jan. 30, the bears failed to capitalize on this weakness. Strong buying on the lows rebounded on Feb. 4 as the price climbed and closed above the spiritual barrier of $0.050.
DOGE/USD bounced back from the $0.0875 overhead resistance on Feb. 7, but the long tail of today’s candlestick indicates that the bulls are accumulating on the lows. If buyers can push the price above $0.0875, the momentum could pick up.
The next target to watch on the upside is $0.102412 followed by $0.13. Contrary to this assumption, if the price drops from $0.875, the pair could consolidate in a range for a few days before starting the next trend move.
LINK/USD
The long tail on the February 7 candlestick shows that the bulls are pulling the price towards the 20-day EMA of $23.15. If buyers can now push Chainlink (LINK) above the overhead resistance area of $25.7824 to $27, the uptrend could resume.
The first objective at the top is $30. If the bulls can push the price above this, the LINK/USD pair could rise to $33. The rising moving averages and RSI in the positive zone are giving the bulls an edge.
Contrary to this assumption, if the price drops from overhead resistance, the bears will once again try to push the price below the 20-day EMA. If they are successful, the pair could slide to $20.1111.
BCH / USD
Bitcoin Cash (BCH) broke above the $465.02 resistance on February 6, but the bulls failed to sustain the breakout. This attracted profit taking and the altcoin fell below the 20-day EMA ($439) on Feb.
However, the bears failed to capitalize on the February 7 weakness and push the price below the 50-day SMA ($422). The bulls are now pushing the price back above $465.02. This raises the rally possibility to $515.
Contrary to this assumption, if the BCH/USD pair drops from current levels and breaks below the 50-day SMA, it will signal weakness.