Bitcoin (BTC), which is currently attempting to reach its bottom, seems to be being helped by whales. Coin Metrics data has shown that whale addresses have been building up a large amount of Bitcoin over the last few days. These addresses have a total supply of 8.96 million Bitcoin, up from 7.95 Million Bitcoin on Jan. 24, to 8.096 Million on February 10.
CryptoQuant, an on-chain analytics platform, has reported that stablecoin crypto exchange balances have risen to $27 billion. This is a sign that investor sentiment may be improving. However, Bitcoin reserves have been continuing to fall on exchanges, which indicates that investors are storing their holdings.
Everyday cryptocurrency market performance. Source: Coin360
Zhu Su, cofounder of the hedge fund Three Arrows Capital (3AC), thinks that Bitcoin’s performance will be different in 2022. Zhu suggested that Bitcoin and Ether, (ETH), are good candidates to go long while the S&P 500 would be a better candidate.
Is it time to make a correction or consolidate after the recent rebound in Bitcoin and other altcoins? Let’s look at the charts for the top 10 cryptocurrencies to see how they compare.
Bitcoin fell below the overhead resistance of $45,456 on February 10, which indicates that bulls are continuing to defend this level aggressively. The bulls have not allowed Bitcoin to fall below the simple moving average of $45,456 ($42,427). This is a minor positive.
Daily chart of BTC/USDT Source: TradingView
This suggests that bulls are trying to turn the 50-day SMA back into support. Buyers may be slightly in the lead due to the rising 20-day exponential moving Average ($41,317) as well as positive relative strength index (RSI).
The bulls will attempt to push BTC/USDT above $45,456 if the price falls below the current level. If they succeed, bullish momentum will pick up and the pair could rise to $48,000 or later to $52,088.
Contrary to what you might think, if the price drops below $45,456 or the current level, the bears will be excited and try to lower the pair below the 20 day EMA. The pair could fall to $39,000.
The price of Ether broke above the 50-day SMA ($3,171) February 9, but the bulls were unable to build on this strength. On Feb. 10, the price fell below the 50-day SMA, which indicates that bulls are trying to trap bears.
Daily chart of ETH/USDT Source: TradingView
Positive news is that bulls have not allowed price to break into the channel. The buyers will attempt to push the ETH/USDT price above the overhead hurdle if the price recovers from the 20-day EMA ($2,959).
A major roadblock could be the zone between the 50-day SMA (or $3,400) The buyers will need to clear this hurdle before the pair can move forward.
Contrary to the assumption, if price enters the channel again, it will indicate that sentiment is still negative and traders are selling rallies. The critical support level at $2,652 could be broken and the pair could fall to that point.
Binance Coin (BNB), is struggling to break the downtrend line in the descending channel. This indicates that bears are fighting to defend the resistance.
Daily chart BNB/USDT TradingView
The flattish 20 day EMA ($410), and the RSI close to the midpoint indicate a balance between supply/demand. The chances of the BNB/USDT pairing staying within the channel for a few days will increase if the price falls below the 20-day EMA. The pair could slip to $390, then continue its downward slide to $357.40.
The bulls will attempt to lift the pair above the channel ($448) if it bounces off its current level. The pair could eventually rise to $500 if they succeed.
After the rally, Ripple (XRP), is seeing profit-booking. The price could fall to $0.75, where buyers might step in to stop the decline.
Daily chart of XRP/USDT Source: TradingView
Bulls are clearly ahead of the pack, as evidenced by the rising 20-day EMA ($0.73) in positive territory and the RSI at the positive territory. The support level of $0.75 will be defended by the buyers.
If the price recovers from this level, buyers will attempt to drive the USDT/XRP pair above $0.92 again and challenge the psychological resistance of $1.
If the price falls below the 20-day EMA, this bullish outlook will be invalidated in the short term. This could lead to a drop of $0.65.
Cardano (ADA), has failed to breach the 50-day SMA ($1.22) over the past few trading days. This indicates that bears are defending the level with vigor. Now, the sellers will attempt to lower the price and keep it below the 20-day EMA.
Daily chart ADA/USDT Source: TradingView
If they can do so, the ADA/USDT pairing could fall to $1. This is an important level that the bulls must defend as a break or close below it could increase selling. The pair could slide to $0.80.
The moving averages have remained flattened and the RSI is close to the midpoint. This indicates that there is a balance between supply/demand. The resistance line in the descending channel could be reached if the price rises above the current level. Positive changes in the trend will be signaled by a break or close above this level.
Solana (SOL), which had fallen below $116 overhead resistance, broke back below the $20-day EMA ($111) February 10. This indicates that sentiment is still negative and bears continue to sell on rallies at resistance levels.
Daily chart of SOL/USDT Source: TradingView
SOL/USDT could slide to $94 before reaching strong support at $80.83. This is an important level that the bulls need to defend as a break or close below could signal the resumption the downtrend. The channel support line could be broken and the pair could drop to it.
A break or close above the resistance line in the channel will be the first sign that a trend is changing. This could indicate a new uptrend. The pair could rally to $157.80.
In the last few days, Terra’s LUNA token has failed to move above the 20-day EMA ($57.80). This suggests that the bears are aggressively defending the level. This is a crucial resistance to monitor on the upside.
Daily chart of LUNA/USDT Source: TradingView
Bears are in control of the market, as indicated by the RSI in negative territory and the 20-day EMA that is downwardsloping. The LUNA/USDT pair may slip to $43.44 if the price drops below $54.20.
If the price rises above $60.64, this negative view will be invalidated. The price could rally to the downtrend channel’s descending channel, where bears might again challenge buyers.
Related: Bitcoin stays in tight range while BTC price moving Averages prepare key bullish crosses
Bulls are finding it difficult to break the downtrend line. This means that bears will continue to sell at higher levels. Avalanche (AVAX), if it breaks below the 50 day SMA ($87), a fall to the 20-day EMA ($80), is possible.
Daily chart of AVAX/USDT Source: TradingView
The price rebounding above the 20-day EMA will indicate that traders are buying dips. The bulls will attempt to push the price higher than the downtrend line, and begin a new up-move. The AVAX/USDT pairing could rise to $117.53 if they succeed.
However, if the price falls below the support zone of the 20-day EMA or $75.50 it will indicate that sentiment is still negative and that traders are selling rallies. This could lead to a drop in the pair to $64.85.
Polkadot (DOT), which closed below the 20 day EMA ($20.96 on February 10), indicated that bears are aggressively defending their overhead resistance zone of $22.66 to the 50-day SMA ($23.75).
Daily chart of DOT/USDT Source: TradingView
The RSI below 46 and flattish moving averages suggest that bears hold a slight advantage in the short-term. The strong support at $16.81 could be reached if the price remains below the 20-day EMA. The pair could stay range bound for a few days if it bounces off of this support.
This assumption is incorrect. If the price rises above the 50 day SMA, it could indicate that bears are losing their edge. This could signal that the pair is on the verge of a $28 up-move.
Dogecoin (DOGE), once again failed to reach the 50-day SMA ($0.15) February 9 and 10. This indicates that bears are aggressively protecting this resistance. The RSI is close to the midpoint and both moving averages appear to be flattening, suggesting a range-bound short term action.
Daily chart of DOGE/USDT Source: TradingView
If the price falls below the 20-day EMA ($0.15), traders who bought the dip could close their positions. This could push the DOGE/USDT currency pair towards the strong support zone of $0.10 to $0.12.
If the price bounces off its current level, buyers will attempt to push it above $0.17 overhead resistance. The pair could rally to $0.22 if they succeed.
Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.
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Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.