On February 16, Bitcoin (BTC), and the U.S. equity market will be selling as traders appear to be cutting positions in assets considered risky due to NATO’s accusation that Russia is building troops close to the Ukrainian border.
This is in contradiction to Moscow’s claims that Russian troops will be returning to their permanent positions after the exercise. In the short term, this geopolitical uncertainty could lead to increased volatility.
The longer-term fundamentals are still strong. According to PwC Luxembourg, 61% of the 123 Luxembourg-based financial companies have started or plan on starting their “crypto journey” within the next few months.
Everyday cryptocurrency market performance. Source: Coin360
JPMorgan opened a virtual lounge at Decentraland’s Metajuku Mall. This is the bank’s first step into the metaverse. The bank believes it will offer a $1 trillion opportunity.
Warren Buffet, who was a vocal critic until now of Bitcoin, appears to be open to the fintech industry. Berkshire Hathaway’s security file shows that it has increased its holdings at Nubank, Brazil’s largest fintech bank, and decreased exposure to Visa and Mastercard stock.
Let’s look at the charts for the top 10 cryptocurrencies to see the price action in the near future.
Bitcoin rebounded from the 20-day exponentially moving average (EMA) on February 14, but the bulls couldn’t push it to the overhead resistance of $45,821. This indicates that selling will continue at higher levels.
Daily chart of BTC/USDT Source: TradingView
The moving averages completed a bullish crossover, and the relative strength indicator (RSI), is in the positive territory. This indicates that sentiment is positive. The bulls will likely buy dips up to the 20-day EMA.
The buyers will try to push the price higher than the neckline for the inverse head-and shoulders (H&S), pattern if the price moves up from its current level or bounces off the 20 day EMA. The bullish setup will be completed if they succeed. This signals a possible reversal.
Contrary to the assumption, a price break below the 20-day EMA could cause the BTC/USDT exchange to drop to $39,000. This is an important level that the bulls must defend as a breach below it could lead to increased selling.
Ether (ETH), which broke above the moving averages on February 15, closed above them, but bulls are having trouble keeping the price above the SMA ($3,068) for 50 days. This means that bulls are continuing to sell rallies.
Daily chart of ETH/USDT Source: TradingView
Now, the sellers will attempt to bring the price below the moving averages. The ETH/USDT pair may drop to $2,652 if they succeed.
However, traders may be accumulating on dips if the price bounces off the moving averages. The bulls will attempt to push the price higher than $3,283.66. An inverse H&S pattern will be completed if the price closes above this level. This will signal a potential up-move. The pair could rally to $4,000.
Binance Coin (BNB), soared over the 20-day EMA ($410), and the downtrendline on February 15, but the bulls couldn’t clear the hurdle at 50-day SMA ($434).
Daily chart BNB/USDT TradingView
The bears are trying defend the 50-day SMA, and to pull the price below the 20 day EMA. The aggressive bulls may get trapped if they don’t succeed. If that happens, the BNB/USDT exchange could drop to $390.60.
However, if the price rebounds above the 20-day EMA it will indicate that sentiment has changed from buy on rallies to sell on dips. This could increase the chance of the price breaking above the 50-day SMA. The pair could rally to $500 overhead resistance if that happens.
For the past few days, Ripple (XRP), has been facing resistance at $0.85. The bears will attempt to push the price towards the breakout level of $0.75.
Daily chart of XRP/USDT Source: TradingView
Bulls are on the edge as the moving averages completed a bullish crossover. The RSI is also in the positive zone. The 20-day EMA ($0.76) will be aggressively defended by the buyers.
If the price recovers from this level, bulls will attempt to break the overhead barrier of $0.85. The XRP/USDT exchange rate could rise to $0.91, and then to $1 psychologically. If bears fall and the price falls below $0.75, this positive view will be invalidated.
Cardano (ADA), which bounced off of the $1 support on February 14th, reached the 20-day EMA ($1.11) Feb. 15. The bears won’t let go of their advantage, and they are fighting for this level.
Daily chart ADA/USDT Source: TradingView
If the price falls below the 20-day EMA the sellers will attempt to lower the ADA/USDT currency pair below $1. A support level that is frequently retested tends to be weaker if it is repeatedly tested. The selling could accelerate if the support level cracks and the pair could plunge to $0.80.
If the price rises above $1, then the channel’s resistance line could be reached. To signal the beginning of a new trend, bulls must clear this hurdle.
Solana (SOL), bounced on February 14th and reached the 20 day EMA ($105 on February 15th), but bulls are still facing stiff resistance from bears at this level. This suggests that sentiment is still negative and traders are selling rallies.
Daily chart of SOL/USDT Source: TradingView
The 20-day EMA is starting to decline and the RSI has fallen below 43. This suggests that bears hold the upper hand. The SOL/USDT pair could fall to $80.83 if the selling pressure continues.
This support is likely to be defended by the bulls with great vigor. The pair could consolidate between $80.83 to $116 for a few more days if the price bounces off of this level.
The resistance line of the channel could be reached if the price moves up from its current level. If the channel closes above its resistance line, it could signal that the downtrend is over.
Avalanche’s (AVAX), bounced off the uptrendline on February 14 and surged to its downtrendline on February 15. Although the bulls drove the price higher than the downtrend line on February 16, the candlestick’s long wick shows that the bears are still selling at higher levels.
Daily chart of AVAX/USDT Source: TradingView
The moving averages are nearing completing a bullish crossover, and the RSI is knocking at the overhead resistance of 62. This indicates that bulls are in control.
The AVAX/USDT pair can rally to $117.53 if buyers keep the price above its downtrend line.
If the price falls below the downtrend line and the price goes down, it could indicate that the breakout is a bear trap. The price could drop back to the moving averages. On a break, the trend could shift in favor of bears and close below the uptrendline.
Related: Bitcoin drops before Fed rate hike cues amid warning about $9T balance sheet
Terra’s LUNA token closed above the 20 day EMA ($56) on February 15, but bulls are having trouble maintaining higher levels. This indicates that bulls are continuing to sell rallies.
Daily chart of LUNA/USDT Source: TradingView
The bears have brought the price below the 20-day EMA. They will now try to break the $54.20 support. The LUNA/USDT pairing could fall to $49.39 if that happens. The next stop for the LUNA/USDT pair could be $43.44.
However, if the price recovers from $54.20, then the pair may resume its relief rally to reach the downtrend line in the descending channel. To signal that the downtrend is over, the bulls must push the price higher than this resistance.
Dogecoin (DOGE), which broke above the 20-day EMA ($0.14) February 15, but is still facing strong selling at its 50-day SMA ($0.15).
Daily chart of DOGE/USDT Source: TradingView
The 20-day EMA is flattened and the RSI is just above the midpoint. This indicates a balance between supply/demand. The overhead resistance of $0.17 could be broken if bulls push the price higher than the 50-day SMA. The bulls can overcome this obstacle and the pair could gain momentum, rallying to $0.22
However, if the price drops below $0.14 and the current level is reached, the pair could fall to $0.13, and then to the critical support of $0.12.
The long tail of Polkadot (DOT) February 14 candlestick indicates that bulls are buying dips close to the $16.81 support level. The bulls failed to overcome the hurdle of the 20-day EMA ($20.16), but the recovery was successful.
Daily chart of DOT/USDT Source: TradingView
This shows that the bears are not giving up yet and are defending the area between the 20-day EMA line and the downtrend. If the price falls further, bears will attempt to lower the DOT/USDT exchange rate below $16.81 to resume the downtrend.
If the price rebounded above $16.81, then the pair will attempt to break through the overhead zone again and reach $23.19. Trend change could signal a break or close to this resistance.
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.