Bitcoin (BTC) and US stock markets will face a sale on February 16 as traders appear to be reducing their positions in assets considered risky amid NATO allegations that Russia continues to build forces near the border with Ukraine.
This contradicts Moscow’s claims that Russian forces will return to their permanent deployment after the exercise is over. This geopolitical uncertainty may increase volatility in the near future.
However, long-term fundamentals continue to strengthen. PwC Luxembourg stated in a recent report that 61% of the 123 Luxembourg financial companies have either started or plan to start their “cryptocurrency journey” soon.
Daily indicators for the cryptocurrency market. Source: Coin360
JPMorgan has opened a virtual lounge at the Metajuku shopping center in Decentralland, and is taking the first step into a metaverse that the bank believes will provide an opportunity of 1 trillion dollars.
Even Warren Buffett, who has been openly critical of Bitcoin so far, seems to be starting to prepare for the fintech sector. Berkshire Hathaway’s security report shows that the company has increased its holdings in Nubank, Brazil’s largest fintech bank, and reduced its holdings in Visa and Mastercard.
Let us examine the charts of the 10 best cryptocurrencies to determine the price action in the short term.
Bitcoin / US dollar
Bitcoin jumped the 20-day exponential moving average (EMA) of $ 41,938 on February 14, but the bulls failed to push the price against the general resistance of $ 45,821. This indicates that higher levels continue to attract sales.
BTC / USDT daily chart. Source: Trading View
The moving averages completed a bullish crossover and the Relative Strength Index (RSI) was in positive territory, indicating positive sentiment. Bulls are more likely to buy on falls against the 20-day moving average.
If the price rises from the current level or jumps from the 20-day moving average, buyers will try to push the price over the neck to the inverted head and shoulder pattern (H&S). If they succeed, the bullish setup will end, indicating a possible reversal.
Contrary to this assumption, if the price falls below the 20-day moving average, the BTC / USDT may fall to $ 39,600. This is a critical level for bulls to protect, because a break below this level could intensify sales.
Ether / US dollars
Ether (ETH) broke to close above the moving average on February 15, but the bulls are struggling to keep the price above the 50-day Simple Moving Average (SMA) ($ 3,068). This indicates that the bears continue to sell at the rally.
Daily ETH / USDT chart. Source: Trading View
Sellers will now try to take the price below the moving average. If successful, the ETH / USDT could fall to a strong support level of $ 2,652.
Conversely, if the price jumps by the moving averages, this will indicate that traders are building on the fall. The bulls will again try to push the price above $ 3283.66. A close above this level will complete the inverted H&S pattern, which will signal the start of a possible upside move. The pair can then go up to $ 4000.
BNB / US Dollar
Binance Coin (BNB) rose above the 20-day SMA ($ 410) and the downtrend line on February 15, but the bulls failed to overcome the barrier at the 50-day SMA ($ 434).
BNB / USDT daily chart. Source: Trading View
The bears try to protect the 50-day simple moving average and pull the price below the 20-day moving average. If they do, aggressive bulls could be caught and the BNB / USDT could fall to $ 390.60.
On the other hand, if the price jumps from the 20-day moving average, this will indicate that sentiment has changed from selling on the ups to buying on the downs. This may increase the likelihood of a break over the 50-day SMA. If this happens, the pair may start to rise to the upper resistance at $ 500.
XRP / USD
In recent days, Ripple (XRP) has met strong resistance around $ 0.85. Now the Bears will try to pull the price up to the breakout level of $ 0.75.
Daily XRP / USDT chart. Source: Trading View
The moving averages have completed a bullish crossover and the RSI is in positive territory, indicating a weak bullish lead. Buyers are likely to aggressively defend the 20-day moving average ($ 0.76).
If the price falls back from this level, the bulls will again try to break the upper barrier at $ 0.85. If this happens, the XRP / USDT pair may rise to $ 0.91 and then to the psychological level of $ 1.