Bitcoin (BTC), which was sold along with U.S. equity market on February 17, on reports that Russia expelled Bart Gorman. This was the second highest ranking American official at the U.S Embassy in Moscow. U.S President Joe Biden warned that there is still a threat of a Russian invasion.
While the near-term correlation between Bitcoin, U.S. equity market remains high, Pantera Capital CEO Dan Morehead stated in a recent newsletter “markets will decouple soon.” Morehead also mentioned that U.S. Federal Reserve rate hikes for bonds, stocks, and real estate will have negative effects on cryptocurrencies. However, cryptocurrencies could be the best place to park capital.
Everyday cryptocurrency market performance. Source: Coin360
While traders focus on the immediate price action, Jurrien Taylor, director of Global Macro at Fidelity Investments dismisses it as noise. Timmer pointed out the similarities between the growth of Bitcoin networks and Apple networks, and concluded that Bitcoin could rise above $100,000 over the long-term.
Bitcoin and many other major altcoins are at an important juncture. Are bulls able to hold key support levels? Let’s look at the charts for the top 10 cryptocurrencies to see.
Bitcoin fell below its moving averages on February 17, which indicates that bears are not in a hurry to give up and are selling on rallies. The bulls can defend the $39,600 level at the price of Bitcoin.
Daily chart of BTC/USDT Source: TradingView
The relative strength index (RSI), which has fallen into negative territory, has begun to decline and the 20-day exponentially moving average (EMA) (41,635) has started its downward trend. This indicates that bears are trying to get the upper hand.
A close below $39600 could increase selling pressure, and the BTC/USDT exchange may fall to $36,250.
The bulls will attempt to push the pair higher than the moving averages if the price recovers from its current level. The pair could rally to $45,821, but buyers will need to clear this hurdle in order to signal a change in trend.
On February 16, Ether (ETH), moved down from near the neckline of the inverse head-shoulders pattern. This indicates that bears are trying to discredit the possibility of a reversal.
Daily chart of ETH/USDT Source: TradingView
The strong support level at $2,652 could see the ETH/USDT pair drop. This level is crucial for bulls to protect as a break below could lead to a further decline to $3,476.
Contrary to the assumption, bulls will attempt to push the price higher than the neckline if the price bounces off its current level. It will signal the beginning of a new up-move if that happens. However, these prospects look dim at the moment.
BNB fell below the 50-day simple moving Average (SMA) of $430 on February 16th and fell below the 20 day EMA (EMA) on February 17.
Daily chart BNB/USDT TradingView
For the past few days, the BNB/USDT pair has been consolidating at $390.50 to $445.40. The balance between supply/demand is evident in the RSI and 20-day EMA that are both flattish and just below the midpoint.
If the price falls below $390.50, the balance will be in the favor of the bears. This could lead to a drop of up to $357.40. A break and close above $445.40 could lead to a rally up to $500. The range-bound action will continue until then.
Short-term traders may have profit-booked because the bulls failed to sustain Ripple(XRP) above $0.85. This caused the price to fall below the support level of $0.75.
Daily chart of XRP/USDT Source: TradingView
The zone between moving averages is likely to be defended by buyers. The XRP/USDT currency pair could reach $0.85 if the price breaks out of this support zone. The resistance at $0.91 could be challenged if the price breaks and closes above this level. Buyers may have a slight advantage due to the gradually rising 20-day EMA, and the RSI at the midpoint.
If the bears push the price below the SMA (50-day SMA), ($0.73), this positive view will be invalidated. This could cause several stop-losses and a possible drop to $0.65 or $0.60.
Cardano (ADA), has been trading between the 20-day EMA ($1.09) & the psychological support at $1 over the past few days. The tight range trading will likely result in a strong directional movement within the next few hours.
Daily chart ADA/USDT Source: TradingView
The RSI in negative zone and the downsloping moving Averages indicate that the path to the downside is the most likely. The ADA/USDT pairing could resume its downward trend if the bears fall and keep the price below $1. The pair could fall to $0.80 or $0.68.
Contrary to popular belief, bulls will drive the pair higher than the moving averages if the price increases from its current level. The pair could rally to resistance at the channel if they succeed.
Solana (SOL), which was below the 20-day EMA ($103), on February 16, declined. The bears will now attempt to push the price below the minor support of $90.72. If this happens, the price could fall to $80.83.
Daily chart of SOL/USDT Source: TradingView
The RSI in negative territory and the 20-day EMA that is slowly falling indicate that bears are on the winning side. Breaking below $80.83 could indicate a resumption in the downtrend. The SOL/USDT currency pair could drop to the channel’s support line.
If the price recovers from the current level, buyers will attempt to push the pair above 20-day EMA and the resistance line in the descending channel. If the price breaks or closes above this level, it could signal that the downtrend is over.
Avalanche (AVAX), broke above the downtrend line and closed above it on February 16. However, the bulls couldn’t capitalize on this advantage. The price has fallen below the downtrend line due to strong selling by bears at higher levels.
Daily chart of AVAX/USDT Source: TradingView
The bulls are trying to defend the moving averages. If the price recovers from its current level, buyers will push the AVAX/USDT pairing above the downtrend line at $98.77. This will indicate a rally to $117.53
If the price falls below the moving averages, then the uptrend line is likely to be tested. If the price breaks or closes below this support, selling could be accelerated and the pair could fall to $76.14, followed by a drop to $65.
Related: XRP’mega-whales’ acquire over $700M in the second-largest accumulation spree in history
Terra’s LUNA token fell and closed above the $20-day EMA ($55), but the bulls couldn’t sustain higher levels. This could have led to short-term traders selling, which has brought the price back below 20-day EMA.
Daily chart of LUNA/USDT Source: TradingView
Both moving averages are falling and the RSI is in negative territory, indicating that bears hold the upper hand. The strong support of $43.44 could be reached if the sellers push the price below $49 by the sellers. Buyers are expected to aggressively defend the area between $43.44 & $37.50.
If the price bounces off its current level, bulls may attempt to push it above the 20-day EMA. The pair could rally to its downtrend line if they succeed.
Dogecoin (DOGE), which was down from the 50 day SMA ($0.15) February 16, suggests that bears may be selling on relief rallies against this resistance.
Daily chart of DOGE/USDT Source: TradingView
Support is at $0.13. The bulls will attempt to push the DOGE/USDT price above the 50-day SMA if the price bounces from this level. The overhead resistance of $0.17 could be reached if they succeed.
A minor advantage for sellers is indicated by the flattish 20 day EMA ($0.14) as well as the RSI in negative zone. The pair could fall to $0.13 if the price falls below that level. If this happens, buyers will likely intervene to stop the slide.
Polkadot’s (DOT) declined from the 20-day EMA (19.82) on February 17, indicating that sentiment is still negative and traders are defending overhead resistance levels.
Daily chart of DOT/USDT Source: TradingView
The bears will attempt to push the price down to $16.81. This is an important support that you should be watching out for. If the price bounces off this level, then the bulls will attempt to push the USDT/DOTT pair higher than the downtrend line. The pair could reach $23.19. If they succeed.
If bears pull the price lower than $16.81, selling could increase and the pair could continue its slide toward $10.37. The path of least resistance lies to the downside, as indicated by the RSI in negative territory and the downsloping moving Averages.
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.