Bitcoin (BTC) traded alongside US stock markets on February 17 based on reports that Russia expelled Bart Gorman, the second-highest US official from the US Embassy in Moscow, and warned US President Joe Biden about the threat of an invasion of Ukraine. from Russia. Still “too high”.
While the short-term relationship between bitcoin and US stock markets remains strong, Pantera Capital CEO Dan Moorhead said in a recent newsletter that “markets will unravel soon.” Morehead stated that a US Federal Reserve rate hike would be negative for bonds, stocks and real estate, and that cryptocurrencies could be the “best place” to put capital.
Daily indicators in the cryptocurrency market. Source: Coin360
As traders focus on short-term price action, Joren Timmer, director of Global Macro at Fidelity Investments, described it as hype. Timmer highlighted the similarities in the growth of the Bitcoin and Apple networks and concluded that Bitcoin could rise by more than $100,000 over the long term.
Bitcoin and many major digital currencies are going through a critical juncture. Will the bulls be able to hold the most important support levels? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
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Bitcoin / US Dollar
Bitcoin dropped below its moving averages on February 17, indicating that the bears are not in a mood to capitulate and sell on the rally. The price is close to $39,600 which is an important level to protect the bulls.
BTC/USDT daily chart. Source: Trading View
The Relative Strength Index (RSI) fell into negative territory and the 20-day exponential moving average (EMA) ($41,635) started to decline. This indicates that the bears are trying to gain the upper hand.
A breakout and a close below $39,600 could increase selling pressure and BTC/USDT could drop to $36,250.
If the price retreats from the current level, the bulls will once again try to push the pair above the moving averages. If they succeed, the pair may gradually rise to $45,821, but buyers should remove this hurdle to signal a possible trend reversal.
Ether / US Dollar
On February 16th, Ether (ETH) made a neck twist to a sophisticated inverted head and shoulders pattern. This indicates that the bears are doing their best to cancel out a possible reflex setting.
ETH/USDT daily chart. Source: Trading View
ETH/USDT could now decline to the strong support level at $2,652. This is an important level for the bulls to protect as a break below this level could open the door for more discomfort up to $3,476.
Contrary to this assumption, if the price returns from the current level, the bulls will again try to push the price and keep it above the head. If this happens, it means the beginning of a new upward movement. But for now, the prospects for such a move look bleak.
BNB / US Dollar
BNB rejected the 50-day simple moving average (SMA) ($430) on February 16 and broke below the 20-day moving average ($408) on February 17.
BNB/USDT daily chart. Source: Trading View
The BNB/USDT pair has been consolidating between $390.50 and $445.40 in recent days. The 20-day EMA and RSI, just below the midpoint, indicate an equilibrium between supply and demand.
This balance will tilt in favor of the bears if the price breaks and stays below $390.50. It could open for a potential drop to $357.40. On the contrary, a break and close above $445.40 could open the door to a potential rally to $500. Until then, the range movement is likely to continue.
XRP / US Dollar
The inability of the bulls to keep Ripple (XRP) above $0.85 may have led to short-term traders taking profits. This pushed the price lower to the strong support level at $0.75.
XRP/USDT daily chart. Source: Trading View
Buyers are likely to defend the area between the moving averages. If the price jumps outside this support area, XRP/USDT could rise to $0.85. A breakout and a close above this level could challenge the $0.91 resistance. The gradual rise of the EMA and the 20-day RSI near the midpoint indicates a small advantage for the buyers.
This positive outlook will be nullified if the bears pull the price below the 50-day simple moving average ($0.73). Such a move could trigger multiple stop losses, which could lead to a drop to $0.65 and then to $0.60.
ADS / USDT
Cardano (ADA) has been sandwiched between a 20-day EMA ($1.09) and a $1 psychological support in recent days. This tight trading is likely to lead to a strong bullish trend over the next few days.