Bitcoin (BTC) and many altcoins have declined from their immediate support levels after buyers tried to stop the current decline. Bloomberg chief commodities strategist Mike McGlone pointed out in a recent tweet that bitcoin is trading about 20% below its 50-week moving average, and that these lower levels “often result in good price support.”
The bearish price action in recent days does not seem to prevent institutional traders from accumulating at lower levels. According to CoinShares’ “Digital Asset Fund Flows Weekly” report of February 22, institutional investors invested nearly $ 89 million in bitcoin between February 14 and 18, bringing the total inflow for the current month to $ 178.3 million.
Daily indicators for the cryptocurrency market. Source: Coin360
Crypto traders do not seem so afraid of today’s 50% retracement. In a survey conducted by Deutsche Bank, only around 35% of respondents said they would reduce trading in the event of a deep crisis in the cryptocurrency market. The majority, over 70%, said they planned to increase cryptocurrency activity over the next six months.
Will Bitcoin and altcoins be able to support the recovery rally, or will they jump and stop recovery? Let’s analyze the charts of the 10 best cryptocurrencies to find out.
Bitcoin / US dollar
Bitcoin has recovered from the initial support of $ 36,250 and now the bulls will try to push the price above the upper resistance range between $ 39,600 and the 50-day Simple Moving Average (SMA) of $ 40,615.
BTC / USDT daily chart. Source: Trading View
If they manage to do so, the BTC / USDT pair could rise to $ 45,821 as the bears are likely to face strong resistance.
A long week on the 23rd of February candle indicates that the bears are trying to turn $ 39,600 towards the resistance level. Declining moving averages and the Relative Strength Index (RSI) in negative territory indicate that the bears are gaining the upper hand.
A break and close below $ 36,250 will signal renewed bearish momentum. The pair may then fall to $ 34,000 and then test the lowest January 24 to $ 32,917.
Ether / US dollars
Ether (ETH) returned psychological support to $ 2,500 on February 22nd. The bulls pushed the price above the $ 2,652 breakout level, indicating purchasing power at lower levels.
Daily ETH / USDT chart. Source: Trading View
Buyers will now try to push the price above the moving averages. If successful, ETH / USDT can rise to the resistance line of the symmetrical triangle pattern. The bulls must push the price across the triangle to signal the start of a new trend.
Alternatively, if the price falls from the moving averages, the bears will try to pull the pair below the triangle’s guide line. If they can do this, it will mean that the symmetrical triangle acts as a continuation pattern. The pair can then fall to $ 2,159 and then to $ 2,000.
BNB / US Dollar
BNB returned from strong support of $ 350 on February 22, indicating that the bulls have not given up and continue to buy at lower levels. The bulls will now try to push the price over the downtrend line to the down channel.
BNB / USDT daily chart. Source: Trading View
If they do, the BNB / USDT pair could rise to the 50-day SMA ($ 416). This is an important level for bears because a break above it can signal a possible trend reversal. The pair can then rise to $ 445.
Conversely, if the price falls from the downtrend line, the Bears will present their odds and make another attempt to take the pair below $ 350. If this happens, the pair could fall to a strong support range of $ 330 to $ 320.
XRP / USD
Ripple (XRP) returned $ 0.66 on February 2 and the bulls pushed the price above the 50-day SMA ($ 0.72). Buyers will now try to break the upper barrier at $ 0.75.
Daily XRP / USDT chart. Source: Trading View
If successful, the XRP / USDT pair may rise to the downtrend line. The bulls must push the pair across this line to signal that the bulls are returning to the game. After that, the pair may rise to $ 0.91.
Alternatively, if the price drops from $ 0.75, it will mean that the bears have turned the level to resistance. The Bears will then try to take the price below $ 0.66 and extend the decline to $ 0.60.