Bitcoin (BTC), which is trying to reach a higher low, as investors take advantage lower levels of accumulation. PlanC, a Twitter user, recently pointed out that the balance of addresses with at least two significant inbound transactions and no outgoing transactions rose to a 57 month high.
But not all are bullish about the future prospects for Bitcoin. Ari Rudd, a popular analyst, presented three long-term technical configurations that point to more downside in Bitcoin. Rudd believes Bitcoin may offer an opportunity to buy in the $24,000-$27,000 range.
Everyday cryptocurrency market performance. Source: Coin360
Bloomberg data shows that Bitcoin prices have been more calm than the Nasdaq 100 Index for 2022. Only five times has Bitcoin moved in any direction more than its average this year, whereas the Nasdaq 100 Index has had 12 such movements.
Low volatility periods are generally followed by range expansion. Therefore, traders should be cautious as a sharp fall in the Nasdaq 100 could increase Bitcoin selling.
Let’s look at the charts for the top 10 cryptocurrencies and identify the critical support levels.
Bitcoin is trying to rebound from the 20-day exponentially moving average (EMA), which was $41,493. This indicates that sentiment has turned positively and traders are buying dips.
Daily chart of BTC/USDT Source: TradingView
Bulls will push the price higher than the $45,821 overhead resistance. If they succeed, the BTC/USDT pair can complete a bullish inverse heads and shoulders pattern.
The psychological level of $50,000 could be the first level for the pair. If this level is reached, the rally might reach the strong overhead resistance of $52,088.
Contrary to popular belief, if the price drops below the overhead resistance or current level, it will indicate that bears are continuing to sell rallies. The price could drop to $39,000. To gain the upper hand, the bears will need to lower the price below the support.
Ether (ETH), which plunged below its 20-day EMA ($2,934), re-entered a descending channel on February 11, indicating that it was selling at higher levels. The price has remained at the 20-day EMA for the past two days, which is a minor plus.
Daily chart of ETH/USDT Source: TradingView
The 20-day EMA is flattish and the relative strength indicator (RSI) is just below the midpoint indicate a balance between supply/demand. If the price breaks above the 20-day EMA and continues to rise, buyers will attempt to push the ETH/USDT pairs above the overhead resistance zone of $3,283.66 to 3,411.43.
They will achieve an inverted H&S configuration if they succeed. The target goal for this reversal setup is $4,408.
However, bears will continue to sell rallies if the price falls below the overhead resistance. This will increase the chances of the price dropping to $2,652.
Binance Coin (BNB), which broke below the 20-day EMA ($407), on February 11, indicated that traders who bought at lower levels might be making profits.
Daily chart BNB/USDT TradingView
The bulls are not allowing the bears to take over and are now buying dips below $400. This is a positive. Although the 20-day EMA remains flat, the RSI is near 47. This suggests that the bears have a slight edge.
The possibility of a fall to $347.40 is possible if the price remains below $400. If the BNB/USDT pairs rises above their current levels and surpasses the SMA (50-day simple moving average) ($439), this negative view will be invalidated. The pair could then begin its journey towards the psychological level of $500.
Ripple (XRP), which saw a sharp rebound from the breakout level of $0.75, turned down from $0.85. This indicates that bears have been selling on rallies. The bears will attempt to lower the price below $0.75.
Daily chart of XRP/USDT Source: TradingView
They may be able to sell more traders who bought lower levels or at a higher level than $0.75, which could lead to increased selling. This could push the XRP/USDT exchange rate to $0.65, and then to $0.60.
If the price moves up from its current level, or bounces off $0.75, this will indicate that bulls are accumulating near their breakout level. The buyers will attempt to reestablish the upward movement by pushing the price higher than the $0.85- $0.91 resistance zone.
Cardano (ADA), broke below the 20 day EMA ($1.11) February 11th and has now reached strong support at $1 A support level is weakened when it is repeatedly retested.
Daily chart ADA/USDT Source: TradingView
The bears have control of the market thanks to the RSI in negative territory and the downsloping moving Averages. Breaking below $1 could signal a resumption in the downtrend. The ADA/USDT exchange rate could drop to $0.80.
Contrary to popular belief, if bulls manage to hold the $1 support once more, the pair will attempt a rally above the moving averages. To indicate a change in trend, buyers will need to push the price higher than the channel.
Solana (SOL), continues trading within the descending channel pattern. It is slowly correcting towards $80.83. The 20-day EMA ($106), has begun to decline once more and the RSI remains in the negative territory. This indicates that bears hold the upper hand.
Daily chart of SOL/USDT Source: TradingView
SOL/USDT could slide to $80.83, which is the strong support. This level is important to monitor as selling could intensify and the pair may drop to the support line.
The bulls will push the pair towards the channel’s resistance line if the price moves up from its current level, or bounces off $80.83. If the price breaks or closes above this level, it will signal that the downtrend is over.
Terra’s LUNA token is currently trading at $54.20. However, the bulls have not allowed it to fall below $50.
Daily chart of LUNA/USDT Source: TradingView
A break above the 20-day EMA ($56) will signal that the bears are losing their grip. The bulls will attempt to push the price towards the downtrend line in the descending channel, where bears could again present a challenge.
However, if the bulls fail in pushing the price above the 20 day EMA within the next few trading days, selling could intensify, and the LUNA/USDT currency pair could slide towards $43.44. Bears are slightly ahead because of the RSI in negative territory and the downsloping moving Averages.
Related: Bitcoin’s 50-day moving mean is kissed by a trader as he predicts new BTC price volatility
Dogecoin (DOGE), which was trading below the 20-day EMA ($0.14), fell on February 11. The bulls failed to recover the level on February 12, as the price fell below the 50-day SMA ($0.15).
Daily chart of DOGE/USDT Source: TradingView
The 20-day EMA remains flattish, but the RSI is below 47. This indicates that bears are trying to get the upper hand. The DOGE/USDT pair could fall to $0.12 if sellers lower the price below $0.14.
Contrary to popular belief, if the price rises from its current level and breaks above moving averages it will indicate that bulls are buying dips. The buyers will attempt to push the pair higher than $0.17, and extend the upward movement to $0.22.
Avalanche (AVAX), which has fallen from the downtrendline on February 10, and has now dipped to its uptrendline, suggesting that traders who bought at lower levels might be exiting their positions.
Daily chart of AVAX/USDT Source: TradingView
The 20-day EMA ($79), is flat, and the RSI just above the middlepoint. This indicates a balance between demand and supply. If the price falls below $75.50 and continues to sustain it, there is a possibility that the price will drop to $64.85 or $61.
The bulls may try again to push the price above its downtrend line if the price rebounded from the current level. It will be a sign that the downtrend is over if they succeed. The pair could rise to $100, and then to $117.53.
Polkadot, (DOT), reversed its downtrend line of February 8th and could drop to $16.81 as strong support. Both moving averages are starting to decline and the RSI has moved into the negative territory. This indicates that bears are in control.
Daily chart of DOT/USDT Source: TradingView
The selling could intensify if the price falls below $16.81. If this happens, the USDT/DOTT pair could fall to $10.37 as the next major support. This assumption is incorrect. Bulls will push the pair higher if the price reboundes from the $16.81 level.
The pair could reach $23.19. overhead resistance if they can do so. The pair could stay range bound for a few days if the price drops below this level. If the price closes above $23.19, bulls will likely gain the upper hand.
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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I am a technology and gaming writer by profession. I love NFT’s and play to earn gaming such as Axie Infinity. I love writing about anything on the blockchain, especially gaming and entertainment. I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.