After buyers tried to stop the current drop, Bitcoin (BTC), and many altcoins, have bounced back from their immediate support levels. In a tweet, Mike McGlone, a Bloomberg senior commodity strategist, stated that Bitcoin was trading at around 20% below its 50-week moving mean and that such low prices have often resulted in price support.
Institutional traders have not been discouraged from buying at lower levels despite the bearish price action over the past few days. According to CoinShares’ February 22 “Digital Asset Fund Flows Weekly”, report, institutional investors poured approximately $89 million into Bitcoin funds from Feb. 14 to Feb. 18. This brings the total inflows to $178.3 millions.
Everyday cryptocurrency market performance. Source: Coin360
The current 50% correction does not seem to have scared crypto traders. Deutsche Bank conducted a survey and found that only 35% of respondents would consider reducing their trading during a bearish crypto market environment. More than 70% of respondents said that they would increase their crypto activity in the next six-months.
Will Bitcoin and other altcoins be able to sustain the relief rally? Or will the bears take over and slow down the recovery? Let’s look at the charts for the top 10 cryptocurrencies to see what happens.
Bitcoin bounced off the initial support level at $36,250. The bulls now plan to push the price higher than the overhead resistance zone of $39,600, and the 50-day simple Moving Average (SMA) ($40.615).
Daily chart of BTC/USDT Source: TradingView
If they can do so, the BTC/USDT pairing could reach $45,821, where bears will likely mount stiff resistance.
The candlestick’s long wick of February 23rd suggests that bears are trying to turn $39,600 into resistance. Bears are the dominant force, as evidenced by the downsloping relative strength index (RSI), and the negative territory of the relative strength moving averages.
The resumption or continuation of the down movement will be signaled by a break and close below $36,250. The pair could fall to $34,000, and then retest the Jan. 24, low of $32,917.
Ether (ETH), jumped off psychological support at $2,500 on February 22. The bulls have driven the price higher than the breakdown level at $2,652, which indicates strong buying at lower levels.
Daily chart of ETH/USDT Source: TradingView
Buyers will attempt to push the price higher than the moving averages. The ETH/USDT price could rise to the resistance line for the symmetrical triangle pattern if they succeed. To signal a new uptrend, the bulls must push the price higher than the triangle.
The bears may try to lower the price below the support line of their triangle if it falls below the moving averages. It will indicate that the symmetrical triangular triangle is a continuation pattern if they succeed. This could lead to the pair dropping to $2,159 or later to $2,000.
BNB bounced back from the strong support at $350 at Feb. 22, indicating that bulls are not giving up and continue to buy at lower levels. Bulls will attempt to push the price higher than the downtrend line in the descending channel.
Daily chart BNB/USDT TradingView
If they can do so, the BNB/USDT pairing could reach the 50-day SMA (416) The bears must defend this level as a sign of a possible trend change. This could lead to a rise in the pair to $445.
If the price moves away from the downtrend line, bears will be happy and attempt to bring the pair below $350. The pair could fall to the strong support zone of $330 to 320 if that happens.
Ripple (XRP), which was $0.66 at the time of writing, jumped to $0.72 on February 2, and bulls drove the price higher than the 50-day SMA ($0.72). Buyers will now try to overcome the $0.75 overhead hurdle.
Daily chart of XRP/USDT Source: TradingView
If they can do so, the XRP/USDT pairing could reach the downtrend line. To indicate that the bulls are back in this game, the bulls will need to push the pair higher than this line. The pair could rally to $0.91.
If the price falls below $0.75, it could indicate that bears have turned the resistance level into support. The bears will attempt to lower the price to $0.66, and then extend the decline to $0.60.
Cardano (ADA), which has been bouncing off strong support at $0.80, indicates that buyers are trying to stop the decline. The price could reach $1 at the breakdown level.
Daily chart ADA/USDT Source: TradingView
The market will reject lower levels if buyers continue to push the price higher than $1. The bulls will attempt to push the price towards the resistance line at the descending channel. A possible trend shift will be signaled by a break or close above the channel.
Contrary to popular belief, if the price falls below $1 it will indicate that bears have turned this level into resistance. The sellers will attempt to lower the price below $0.80, thereby resuming the downtrend.
Solana (SOL), bounced off the $81 resistance on February 22, which indicates that buyers are trying to defend this level. The RSI is forming a positive divergence which indicates that bearish momentum may be weakening.
Daily chart of SOL/USDT Source: TradingView
The SOL/USDT price could rally to resistance at the descending channel if buyers continue to drive the price higher than the 20-day EMA ($97). The resistance line of the descending channel could be a significant barrier, but it could be overcome by bulls. If that happens, the pair could rally up to $122.
A double bottom pattern will be completed if the resistance is broken and closed above. The target price for this bullish setup is $163. If the price falls below the $81 resistance line or 20-day EMA, this positive outlook will be invalidated. This could lead to a further fall to $66.
Avalanche (AVAX), broke below the moving averages Feb. 20, but the bears couldn’t capitalize on this advantage. The price has reached the moving ranges after strong buying at $67.
Daily chart of AVAX/USDT Source: TradingView
The AVAX/USDT pairing could rally if buyers continue to push the price higher than the moving averages. This level is likely to be defended aggressively by the bears.
It will be a sign that traders are buying dips if the price falls below the downtrend line, but bounces above the moving averages. This will increase the chances of the pair breaking above the channel. The pair could rise to $100, then rally towards $117 if that happens.
If the price falls below the current level, bears will try to get the pair below $67 so that the downtrend can resume.
Related: This algorithmic indicator was able to identify winners even in chaotic crypto markets.
Terra’s LUNA token fell and closed above the 20 day EMA ($54) Feb. 22, which was the first sign that the sellers might be losing their grip. The price has moved to the downtrend line in the descending channel due to sustained buying.
Daily chart of LUNA/USDT Source: TradingView
The 20-day EMA is flattening out, and the RSI has jumped to the positive territory. This suggests a slight advantage for buyers. Trend change could be indicated by a break or close above the 50 day SMA ($62). The LUNA/USDT currency pair could rally to $70, where it might again be challenged by the bears.
Contrary to the assumption, a price drop below the 50-day SMA will indicate that bears are trying to protect the overhead resistance. Bulls will buy the dips if the price bounces off the 20-day EMA. This will increase the likelihood of the price breaking above the 50 day SMA. If bears pull the price lower than the 20-day EMA, this positive outlook will be disregarded.
Dogecoin (DOGE), which rebounded from the strong support of $0.12 on February 12, suggests that bulls are still buying dips and have not given up.
Daily chart of DOGE/USDT Source: TradingView
Although the relief rally will likely face resistance at the moving averages, the positive divergence of the RSI favors buyers. The DOGE/USDT pair may rise to $0.17 if the bulls continue pushing the price higher than the 50-day SMA ($0.14).
A close at or above this level will complete the double bottom pattern. The target price is $0.22. If the price falls below the moving averages, bears will be excited and attempt to sink the pair below $0.12. The pair could fall to $0.10 if they succeed.
The support level at $15.80 for Polkadot has been broken. This indicates that bulls are not giving up and continue to buy at lower levels. The RSI is forming a positive divergence which suggests that selling momentum may be slowing.
Daily chart of DOT/USDT Source: TradingView
The DOT/USDT currency pair could rise to the downtrendline, which will likely act as a strong resistance. If the price falls below this level, bears will attempt to bring the pair down to $15.80 and restart the downtrend.
If bulls push the price above the downtrend and the 50-day SMA ($21.14), then the pair could reach the overhead resistance at $23.19. A double bottom will be completed if the price breaks and closes above this level.
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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.