We are here with a new price analysis. Many altcoins are taking advantage of BTC’s consolidation by rallying higher as bitcoin price tries to revisit the $50,000 mark.
Institutional investors continue to invest money in the crypto segment, even if the price currently falls below $45,000. On Feb. 24, business intelligence firm MicroStrategy announced that it recently purchased over $1 billion worth of Bitcoin (BTC) at an average price of $52,765. This shows that the company’s total number of BTC is 90,531.
Another company that has bought bitcoin during the current market correction is Square. The company said it bought about “3,318 bitcoins for a total purchase price of $170 million.”
These purchases by institutional investors show that they are bullish on Bitcoin’s long-term expectations and believe that around $50,000 is a reasonable buy.
While corporate buyouts are a bullish sign, traders should remember that for every buyer there is a seller. Glassnode data shows that bitcoin whales with 1,000 to 10,000 bitcoins and “humpback whales” with more than 10,000 bitcoins sold more than 140,000 bitcoins in February.
Historically, whales have rocked the crypto markets on their own. But the entry of institutional investors has reduced their dominance. Therefore, in addition to whales, traders should also keep an eye on company activities.
While large investors can buy and hold for the long term, it would be nice if the smaller investor bought in real time to make the most of limited capital. Let’s examine the charts of the top 10 cryptocurrencies to determine the trend.
Bitcoin Price Analysis
Bitcoin’s pullback from the 20-day exponential moving average ($48,323) on February 22 met an aggressive sell-off on February 23 . The bears dragged the course below the channel. However, the long tail of the daily candle suggests buying at lower levels.
Buyers are currently trying to keep the BTC/USD pair inside the channel. Today, however, the intraday candlestick pattern shows indecisiveness amidst the bulls and bears. The stable 20-day EMA and Relative Strength Index (RSI) quickly above the midpoint also suggest stability in the midpoint of supply and demand.
If the bulls can sustain the price above $50,000, the pair will attempt to rally to the resistance line of the ascending channel. The next leg of the uptrend may begin after the price surpassed the all-time high of $58,341.03.
Contrary to this assumption, if the bears pull the price back below the channel, the pair will drop to $45,000 and then to the easy 50-day moving average ($40,541). A break below this support will signal a deeper correction to $28,850. Ethereum (ETH) broke the ascending channel reinforcement line and the 50-day SMA ($1.487) on Feb 23. But the bulls bought the dip. It also managed to keep the price within the channel.
The bulls are currently trying to push the price above the 20-day EMA ($1,728). If successful, the ETH/USD pair will attempt to rally back up to the channel’s resistance line.
However, the 20-day EMA has turned bearish. The RSI is near the middle. This shows that the bears are trying to make a comeback.
If the price breaks below the 20-day EMA, the bears will again attempt to sink and sustain the pair below the 50-day SMA. If they succeed, the pair will enter a deeper correction. The price could drop to $1,000.
Binance Coin Price Analysis
Binance Coin (BNB) remains volatile over a wide intraday trading range. The bears pushed the price down to the 20-day EMA ($182) on Feb. 23. However, the altcoin has undergone a smart makeover, as evidenced by the daily candlestick’s long tail.
Cointelegraph Markets Pro VORTECS™ data began spotting a bullish outlook for BNB on Feb. 1.
Even as the price of Binance Coin started correcting from $273 on Feb. 23, the VORTECS™ score of 71 started to rise.
The score quickly reached 82 after the announcement of the UFT token listing on Binance. This was followed by several more announcements to integrate BNB into the DeFi space. After these announcements and the bullish outlook of the VORTECS™ score, BNB price started to rally from $201.
This was soon followed by a significant price recovery. After a brief decline, the VORTECS™ score began to increase from 71. On February 24, the price rose to $271 and touched 80.
The bulls are currently trying to push the price above the downtrend line. However, the long wick on the candlestick is selling at higher levels.
If the price breaks the downtrend line again, the BNB/USD pair will drop to the 20-day EMA. A break below this support could worsen the sell-off and push the price to $118. On the contrary, if the bulls push the price above the downtrend line, the BNB/USD pair could rally to $300 and then $348.6969.
DOT Price Analysis
The long tail of the 22nd and 23rd February candlesticks shows that traders are aggressively buying the Polkadot (DOT) drop.
The recovery of DOT coincided with the recovery of several major cryptocurrencies.
The bulls are currently attempting to push and sustain the price above the ascending channel resistance line. If successful, the DOT/USD pair could rally to $42.2848.
A break and close above the all-time high will open the doors for a rally to spiritual levels of $50. The bulls have an advantage with the rising moving averages and the RSI near the buy zone.
This bullish view will be invalidated if the pair declines sharply from current levels and breaks below the ascending channel’s reinforcement line.
ADA Price Analysis
The bears again attempted to sink Cardano (ADA) below the 20-day EMA ($0.867) on Feb. 23. But it failed. This shows that sentiment remains positive and traders see the dips as a buying opportunity.
The bulls pushed the price back above $0.9817712. A retest of $1.1980811 is possible if the price stays above the $1 spiritual level. A break and close above this resistance could indicate that the uptrend has started again.
Both moving averages are rising and the RSI is close to the buy zone. This indicates that the path of least resistance is upstream.
This bullish view will be rejected if the price falls and breaks below the 20-day EMA. Such a move will push the ADA/USD pair down to $0.6879684.
XRP/USD
XRP has been all over the place for the past few days. After the bulls failed to sustain the price above $0.65 on Feb. 22, the altcoin faced severe selling pressure. On February 23, it fell to $0.365. However, the long tail of the daily candle shows aggressive buying at the lows.
Buying lows and selling rallies is a sign of consolidation. The XRP/USD pair could trade between $0.359 and $0.65 for a few days. A flat 20-day EMA ($0.499) and an RSI near 50 are also suggesting a possible range-bound move for a few days.
The next trend move could begin after the bulls sustain the price above $0.65 or the bears push the pair below $0.359. Until then, the volatile price range-based move is likely to continue.
LTC/USD
The failure of the bulls to regain Litecoin (LTC) on Feb. 22 suggests a potential reversal in sentiment. Traders seem to use rallies to calculate profits. The altcoin crashed on February 23. This can catch aggressive bulls in the wrong move, which can lead to the liquidation of long positions.
LTC/USD broke below the 50-day SMA ($166) on Feb 23. However, the bulls defended the uptrend. However, it is possible that a random recovery rally at the 20-day EMA ($195), which is starting to fall, can compete with strong resistance.
If the bulls fail to push the price above the 20-day EMA, the pair could see another sell-off that could push the price towards the $120 support.
This negative view will be invalidated if the bulls push the price above the 20-day EMA. Above this level, a retest of $246.9679 could be on the cards.
LINK/USD
Chainlink (LINK) broke the main line of the ascending channel on Feb 23. This may have caught the aggressive bulls who bought the February 22nd dip. The $20.1111 level is a critical support.
Base buyers bought the dip on Feb. 23. They are currently attempting to pull the price back into the ascending channel. However, it is possible for buyers to face stiff resistance at the 20-day EMA ($29.58).
A pullback from the 20-day EMA suggests traders are selling in rallies. The bears will then try to sink the price below the 50-day SMA. It will also retest the $20.1111 level.
If the bulls can push the price into the ascending channel, this negative view will be invalidated. Such a move could result in a rally to $34 followed by $36.9307.
BCH/USD
Bitcoin Cash (BCH) broke below the sell seven- and 50-day SMA ($514) on Feb. 23. However, the bulls bought the bearish market on the uptrend line. It is currently attempting to push the price above the $539 resistance.
The 20-day EMA ($596) is back and the RSI is fast below the midpoint. This shows that bears have the advantage.
Sellers are likely to defend the 20-day EMA. When the price falls from this resistance, it indicates traders are selling in the rallies. A break and close below the upper trendline will open the bearish path to $370.
Contrary to this assumption, if the bulls can push the price above the 20-day EMA, the BCH/USD pair could rally to $631.71 and then $745.
XLM/USD
Stellar Lumens (XLM) broke below the $0.35 support on Feb 23. However, the long tail on the day’s candlestick shows that the bulls bought the bear market. The altcoin is currently trading in a descending channel.
If the bulls can push the price above the 20-day EMA ($0.439), the XLM/USD pair will rally to the channel’s resistance line. A break in the channel will indicate that the bulls are back in the game. Buyers will then try to push the price down to $0.600681.
Conversely, if the price breaks the 20-day EMA and falls below $0.35, it could open the doors for a deeper correction to $0.23.
The 20-day flat EMA and the RSI near the midpoint do not indicate a clear advantage for the bulls or the bears.