Much of today’s rally in cryptocurrency bulls is due to institutional demand. But perhaps for the first time, institutions are pushing back. According to CryptoQuant, the Coinbase Premium Index – Bitcoin Price Difference (BTC) between Coinbase Pro and Binance – has become negative, indicating that professional traders can make money.
Institutional sales must be closely monitored because approximately 3% of Bitcoin in circulation is owned by these investors. If they start dumping their positions, it could cause other traders to migrate and cause a sharp pullback.
Over the past 24 hours, $ 1.89 billion in cryptocurrency futures positions have been liquidated on various exchanges. However, most of the liquidations have taken place at Binance, with retail being assumed to be the dominant one, while Bitfinex saw the least. This led Bitfinex’s Paolo Arduino CTO to suggest that Bitfinex traders “use leverage a little more carefully”.
One of the main reasons for the sharp decline in cryptocurrencies can be attributed to the sharp rise in financing rates on Binance Futures, which rose to 0.3% to 0.7% from an average of 0.01%, indicating fierce speculation from beginners.
But has the alternative digital currency trend changed after the change? Let’s break down the top 10 cryptocurrency maps to find out.
Bitcoin / USD
The Bitcoin (BTC) price rose to $ 49,689 on February 14, approaching the psychologically important $ 50,000 level. Although the bears tried to initiate a correction today, the long tail on the daily light indicates that the bulls are not in the mood for a refund.
A shallow correction that did not reach the break of $ 41,959.63 indicates strength. Bullish moving average and relative strength index (RSI) in the overbought zone indicate that everything is under the bulls’ control.
If the bulls can handle the buying pressure and push the price above $ 50,000, the bitcoin / dollar pair can see a short squeeze that can quickly push the price to $ 60974.43.
Contrary to this assumption, if the price is rejected again close to the $ 50,000 level, it means that the bears are aggressively defending this resistance.
This could attract profits from traders in the short term, leading to a fall to $ 44,000 and then to a 20-day exponentially moving average ($ 41,975). A bounce from this support indicates that the feeling is still positive.
However, if the bears push the price below the 20-day moving average, the pair may fall to the 50-day simple moving average ($ 36,502). A break in this important support may indicate a possible trend change.
ETH / USD
Ether (ETH) has accumulated between $ 1,680,173 and $ 1,835,554 in recent days. The bulls pushed the price back above $ 1,835,554 in the last three days, but failed to maintain the breach, indicating that demand is drying up at higher levels.
With the bulls unable to reach the break, the bears tried to initiate a correction today. The ETH / USD pair fell below $ 1,680,173, but the bulls bought the decline aggressively, triggering a strong recovery that is evident in the long tail of daylight.
If the bulls can now push the price above the $ 1,835,554 resistance zone to $ 1,869,473, the pair could rise to the upper channel’s resistance line of $ 2000. This is the critical psychological level where bears can once again offer strong resistance.
Bullish moving averages and RSI near overbought territory indicate that bulls are in control. This positive outlook will disappear if the price reverses from the highest resistance level and falls below the 20-day moving average ($ 1,631).
ADA / US Dollars
Cardano’s ADA fell today to the 20-day EMA ($ 0.66), but the bulls bought the decline, indicating that sentiment remains optimistic. Buyers will now try to push the price above the $ 0.9817712 resistance.
If successful, the ADA / USD may resume its upward trend with the next target of $ 1.25 followed by $ 1.50.
Contrary to this assumption, if the price moves away from the upper resistance, the pair can consolidate in a wide range from $ 0.981 to $ 0.687 for several days.
This positive vision can be reversed if the bears fall and fall under the 20-day EMA. This step assumes that supply exceeds demand and indicates a potential change of direction.