Each uptrend indicates periodic attempts to take profits, as short-term traders tend to attach positions either at bad news or critical levels of technical resistance. This happened with Bitcoin (BTC) today, when the price temporarily fell below $ 48,000 and traders crypto to close or fill in positions before the close.
Elon Musk tweet on February 20 saying that Bitcoin prices “appear to be high” and Treasury Secretary Janet Yellen’s warning today that bitcoin is “extremely ineffective” could dampen sentiment in the short term.
Another factor that could have exacerbated the decline was the liquidation of excessively long positions. Nearly $ 1.64 billion in bitcoin futures deals were liquidated during the day’s slump.
However, the derivative data for bitcoin futures are not showing negative developments, as noted by Cointelegraph Markets analyst Marcel Beeman.
Let’s break down the charts of the top 10 cryptocurrencies to find critical levels when moving up and key support levels when moving down.
Bitcoin / USD
Bitcoin broke the resistance line of the rising channel on February 19, but failed to gain momentum. This showed that the current trend is boring. Today, traders made solid gains, pushing the price down to a 20-day exponential moving average ($ 48,081).
Nevertheless, lows continue to attract visible buyers from the long tail of the daily candlestick. If the price remains above the center of the channel, the bulls will try to push the pair across the channel again.
If they succeed, the BTC / USD may resume the trend. Next up target is $ 60,974.43, followed by $ 66,000. The rising of the moving averages and the Relative Strength Index (RSI) in positive territory indicate that the bulls are in control.
Contrary to this assumption, bears will try to break the 20 day moving average support again if price remains below the midpoint of the channel. If successful, the pair may drop to the 50-day simple moving average ($ 39,885).
ETH / USD
Ether (ETH) diverged away from the resistance line of the rising channel on February 20, indicating that traders took profits after the price reached the psychologically important $ 2000 level.
The selling continued today, and the Ethereum / USD pair fell to the ascending channel’s support line. Nevertheless, this is a positive sign that the bulls have bought the dip seen on the long tail of the candlestick today.
If the buyers manage to push the price and hold above the 20-day moving average ($ 1,753), the positive momentum might remain unchanged.
Conversely, if the price remains below the 20 day moving average, the bears will try to push the pair down the channel and the 50-day SMA ($ 1465). If the correction is successful, the correction can be increased to $ 1200 and then to $ 1000.
BNB / USD
Binance coin (BNB) has seen volatile moves in recent days. After the sharp rise on February 19, traders took strong profits on February 20th. The bulls attempted to resume training on February 21st, but high levels attracted profit taking again.
The bulls are currently trying to defend the area between the 50% Fibonacci retracement level at $ 233.3485 and the 611.8% retracement level at $ 206.1262. If this succeeds, the BNB / USD pair might continue in the choppy range for several more days.
Conversely, if the bears drop below $ 2061262, the decline may extend to the 20-day moving average ($ 168). This is an important support to watch out for, as a break below indicates a change in trend and likely down to $ 118.
DOT / USD
Polkadot (DOT) broke the rising channel on Feb 19 and rose to a new all-time high of $ 42.2848 on Feb 20. However, the long week of today’s candlestick showed that profits were being taken at higher levels.
After forming a candlestick pattern on February 21st, the DOT / USD is back in the channel today. However, the bulls bought the traps and pushed the price back across the canal.
Buyers will now try to push the price above $ 42.2848 and resume the trend. On the other hand, the bears will try to get the pair back into the channel. If the pair succeeds, it might drop to the 20-day moving average ($ 28.89).