We are here again with the price analysis. Altcoins have soared to new heights. However, Bitcoin price is trading in a horizontal range near the $47,000 support.
Financial regulators around the world are finally warming to the idea that cryptocurrencies can transact with exchanges and also exchange traded funds (ETFs). On February 11, Canada’s Ontario Securities Board approved a Bitcoin ETF proposal.
On the other hand, the Australian Securities and Investment Board has also softened its stance against the Bitcoin ETF. A reasonable market must have appropriate rules, says ASIC commissioner Cathie Armor. But he said he could give the green light to a Bitcoin ETF in such a situation.
Bitcoin ETFs being approved by several countries are valuable. This will put pressure on US regulators to think positively about future proposals.
Bitcoin has surpassed the $900 billion market cap today. In addition, with this rise, BTC reaches almost 1 trillion dollars.
The growing popularity of the crypto derivatives market indicates that the asset class is maturing. This provides an additional advantage.
Even in legacy markets, derivatives are one of the key components used for price discovery of an asset.
It is necessary to identify critical levels that indicate a trend change. So let’s analyze the charts of the top 10 cryptocurrencies.
Bitcoin Price Analysis
During strong uptrends, pullbacks usually only last one to three days. Because the bulls buy every small dip as they expect higher highs in the future. The same is the case with Bitcoin as the price bounced back sharply on February 11.
The spiritual level of $50,000 acts as a resistance. However, the bulls are busy pushing the price above this level. Therefore, $60,974.43 is possible on the BTC/USD pair.
However, the pair’s lack of momentum after reaching its all-time high on February 11 shows hesitation to buy at higher levels. The bulls should continue to rise in the next few days. Otherwise, short-term traders will buy profits.
The pair is likely to decline further to $41,959.63 and the 20-day exponential moving average ($39,895). This is a critical area to consider. A break below it will indicate weakening of momentum.
The bears will be in the game if the pair drops below the 50-day easy moving average of $35,180.
Ethereum Price Analysis
Ethereum (ETH) is currently struggling to break out of the narrow gap in the middle of $1,680,173 to $1835554, where it has been stuck for the past few days. A breakout will indicate that the bulls have overpowered the bears.
The rising moving averages and the RSI, which is quickly below the much-bought level, indicate that the path of least resistance is on the upside. The bulls will try to keep the price above $1,835,554. Therefore, the ETH/USD pair could rise to the resistance line of the ascending channel.
A break of the channel will indicate an increase in momentum. There is spiritual resistance at $2,000 But if the bulls can push the price above this level, the pair could rally to $2,500.
Contrary to this assumption, if the price drops below $1,680,173, the pair could drop to the 20-day EMA ($1,568) and subsequently to the channel’s reinforcement line. This is a valuable pillar that needs attention. Because in a break at this level, the pair may signal a trend change.
ADA Price Analysis
Cardano (ADA) is currently witnessing a minor correction in a strong uptrend. The shallow pullback indicates that traders are not taking profits quickly as they expect the uptrend to continue.
The rising moving averages and RSI above 87 show that the trend remains strongly in favor of the bulls. The first reinforcement on the downside is the 38.2% Fibonacci retracement level at $0.7230669.
If the price bounces back from this support, the bulls will try to resume the uptrend again. A break and close above $0.9817712 could push the price towards $1.25 and subsequently $1.50.
Contrary to this assumption, if the price drops from current levels and breaks below the 20-day EMA ($0.593), the ADA/USD pair could signal a possible change in trend.
XRP Price Analysis
XRP rallied to close above the overhead resistance of $0.50 on February 11. In addition, today was another rise. The rising 20-day EMA ($0.425) and the RSI in the very buy zone suggest that the bulls have the upper hand.
This could push the price above the overhead resistance. Also, the XRP/USD pair could gain momentum and rise to $1.
This bullish view will be invalidated if the price breaks from current levels or overhead resistance and dips below $0.50. Such a move will show that traders have lowered their positions in the rallies.
DOT Analysis
Polkadot (DOT) is in a strong uptrend. The price has now reached the resistance line of the ascending channel, where the bears may face stiff resistance. Earlier, the altcoin entered a minor correction when the price reached the resistance line of the channel. It had also fallen to the fulcrum of the channel.
However, if the bulls can push the price above the channel, the price will gain momentum. The first goal on the top is $33 followed by $40. The rising moving averages and the RSI in the very buy zone suggest that the bulls have the upper hand.
This bullish view will be invalidated if the DOT/USD pair drops below the reinforcement line of the channel. Such a move would indicate the beginning of a deeper correction.
BNB Analysis
Binance Coin (BNB) witnessed profit taking on February 10. However, the correction was short-lived as the bears failed to even push the price to the 38.2% Fibonacci retracement level of $105.7886. A shallow correction following a sharp rally is a positive sign as it shows that the tarders are not quick to close their positions.
The bulls are currently attempting to resume the uptrend by pushing the price above the overhead resistance of $148.40. If they are successful, the BNB/USD pair will start its correct journey to $200.
However, the RSI is essentially above the 88 level. This shows that the rally has expanded a lot. A random rise above $148.40 will push the RSI deeper into the very buy zone. In addition, a sharp converse will increase the risk of a meltdown that may follow the turn.
Conversely, if the price drops from $148.40, the pair could either maintain its price range end or enter a meaningful correction.
LTC Analysis
Litecoin (LTC) formed a Doji candlestick pattern that showed indecision amid bulls and bears on February 10 and 11. If the bulls can push the price above $185.5821, a rally to $200 is possible.
The slowly rising moving averages and the RSI near the very overbought zone suggest the path of least resistance is on the upside.
Contrary to this assumption, if the price fails to stay above $185.5821 again, it will indicate that demand is decreasing at higher levels. The LTC/USD pair could then drop to the 20-day EMA ($158).
If the price reverses above this reinforcement, it will indicate that the bulls are buying the lows. They will then again push the price above the overhead resistance and continue the uptrend.
On the other hand, $120 is possible if the price drops and dips below the moving averages.
LINK Analysis
Chainlink (LINK) resumed its uptrend today after staying above $25,7824 for the past three days. The price has now reached the resistance line of the ascending wedge pattern. This situation may attract sales from bears.
But if the bulls can push the price above the ascending wedge pattern, the LINK/USD pair may gain momentum. It can then rise to $33 and then $36.
On the contrary, if the price drops from current levels, the pair will come to $25.7824 reinforcement. A break below the fulcrum of the wedge will complete the bearish setup and open the doors for a drop to $20.1111.
XLM Assay
Stellar Lumens (XLM) is on the rise. The rising moving averages and the RSI in the very buy zone suggest that the bulls have the upper hand. However, the altcoin is facing resistance at the spiritual level of $0.50.
The XLM/USD pair will drop to $0.409 if the price slides down from the overhead resistance. It will then drop to the 20-day EMA ($0.36). A strong bounce off this base will indicate lower levels of accumulation.
The bulls will then try to continue the uptrend by pushing the price above $0.50. A suitable move would mean an uptrend. In addition, the price will reach $ 0.58. Conversely, a break below $0.35 might suggest a deeper correction at the 50-day SMA ($0.27).
BCH Analysis
Bulls are trying to keep Bitcoin Cash (BCH) above the overhead $539 resistance. If they are successful, the altcoin will hit $631.71. A successful attempt at this level will bring the price to $745.
The upper sloping moving averages and the RSI above 65 indicate that the path of lowest resistance is on the upside.
Contrary to this assumption, if the price drops from current levels, it will show that the bears are aggressively defending $539. A real regression below the moving averages. In this case, its price will be in the range of $ 539 to $ 370 for a few more days.