Bitcoin (BTC) is trying to make a higher bottom as investors use lower levels to build up. Twitter user PlanC recently highlighted that the balance of addresses with at least two significant incoming transactions but no outgoing transactions has risen to a 57-month high.
However, not everyone is optimistic about the future prospects of Bitcoin. Popular analyst Ari Rudd presented three long-term technical plans that point to a further decline in Bitcoin. Rudd believes that Bitcoin could present a buying opportunity in the $24,000 to $27,000 range.
Daily indicators in the cryptocurrency market. Source: Coin360
Data compiled by Bloomberg shows that the price of bitcoin was more relaxed compared to the Nasdaq 100 in 2022. This year, there were only five cases where bitcoin moved more than one standard deviation from the mean in both directions, while the Nasdaq 100 saw 12 such trait.
As a rule, periods of low volatility are replaced by broadening of the range. Therefore, traders can remain cautious as the sharp decline in the Nasdaq 100 index may accelerate the selling of bitcoin.
Let’s examine the charts of the top 10 cryptocurrencies to find critical support and resistance levels.
Bitcoin / US Dollar
Bitcoin is trying to recover from the 20-day exponential moving average (EMA) at $41,493, which indicates that the sentiment is positive and that traders are buying to the downside.
BTC/USDT daily chart. Source: Trading View
The bulls will try to push the price and keep it above the upper resistance at $45,821. If this happens, the BTC/USDT pair will complete the bullish inverted head and shoulders pattern.
The pair may first rise to the psychological level of $50,000, and if this level is broken, the rally could reach the difficult upper resistance level at $52,088.
Contrary to this assumption, if the price falls from the current level or upper resistance, this indicates that the bears continue to sell on the rise. After that, the pair could drop to $39,600. Bears must bring the price below this support in order to gain the upper hand.
Ether / US Dollar
Ether (ETH) fell below the 20-day moving average ($2934) and returned to the descending channel on February 11, indicating a sell-off at a higher level. The least positive is that the price has been holding onto the 20-day EMA in the past two days.
ETH/USDT daily chart. Source: Trading View
The flat 20-day EMA and the Relative Strength Index (RSI) just below the mid-point indicate an equilibrium between supply and demand. If the price breaks and stays above the 20-day moving average, buyers will make another attempt to push ETH/USDT above the upper resistance area at $3,283.66 to $3,411.43.
If they succeed, the pair will complete an inverse H&S pattern. This reversal setup target is $4408.
On the other hand, if the price drops again from the upper resistance level, this will indicate that the bears continue to sell on the rallies. This will increase the possibility of a fall towards the strong support level at $2,652.
BNB / US Dollar
Binance Coin (BNB) broke and closed during the 20-day moving average ($407) on February 11, indicating that traders who bought at lower levels could turn a profit.
BNB/USDT daily chart. Source: Trading View
However, on a less positive note, the bulls did not let the bears go and buy the dip below $400. The 20-day moving average is flat, but the RSI is down around 47, indicating a smaller advantage for the bears.
If the price stays below $400, the chance of a decline increases to $347.40. This negative opinion will be invalidated if the BNB/USDT pair reverses from the current level and breaks the 50-day simple moving average (SMA) at $439. The couple can then start their journey to the psychological level of $500.
XRP / US Dollar
Ripple’s (XRP) sharp decline reversed from the $0.75 breakout level down from $0.85, indicating that the bears are selling on the upside. The bears will now attempt to pull the price below $0.75.
XRP/USDT daily chart. Source: Trading View
If they succeed, the selling may increase as traders who bought at lower levels or on a break above $0.75 may rush to the end. He can pull the XRP/USDT pair to $0.65 and then to $0.60.
On the other hand, if the price rises from the current level or falls from $0.75, this will indicate that the bulls are accumulating near the breakout level. Buyers will then make another attempt to resume the move higher, pushing the price above the $0.85 resistance area to $0.91.
ADS / USDT
Cardano (ADA) broke through the 20-day moving average ($1.11) on February 11 and reached a strong $1 support. Retesting the support level will weaken it.