US stock markets and Bitcoin (BTC) retreated sharply from the lows on Feb. 24, while gold retreated from recent highs. This indicates that investors can buy risky assets and reduce their exposure to safe-haven assets.
Recent reports also suggest that Russian President Vladimir Putin may send a delegation to negotiate with Ukraine, raising hope that the conflict could end sooner than analysts expect.
Some analysts believe that the US Federal Reserve cannot aggressively raise interest rates in March due to the geopolitical situation. Mohamed El-Erian, chief financial adviser to Allianz, believes that the March 50 rate hike is “completely out of the question.”
Daily indicators in the cryptocurrency market. Source: Coin360
Dr. Rowling Chai, co-founder and CEO of the IoTeX blockchain network, told Cointelegraph that investors should refrain from selling their cryptocurrency in the hope of buying it back at a lower price. He warned that the market “could easily reach an all-time high by the end of the year.”
Will the bulls be able to build on a strong reversal from the lower levels, or will the bears sell at the higher levels and pull the price down? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
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Bitcoin/US dollar
Bitcoin formed a candlestick pattern outside on February 24th. The bears have pulled the price below the immediate support at $36,250, but the long tail of today’s candle indicates that strong bulls are buying at lower levels.
BTC/USDT daily chart. Source: Trading View
If buyers push the price above the moving averages, BTC/USDT could rise against the overall resistance of $45,821. Such a move will indicate that the bears may lose their grip. The longer the price stays above the moving averages, the more likely it is that a bottom will form.
Conversely, if the price falls below the moving averages, this will mean that the sentiment is still negative and traders are selling on the rise. The bears will then make another attempt to sink and keep the pair below $36,250. If they succeed, the pair could fall into a strong support zone between $34,322 and $32,917.
Ether/US dollar
Ether (ETH) broke below the symmetrical triangle guideline on Feb 24, but the bears failed to hold on to the lower levels. The long tail of today’s candle indicates strong buying at lower levels.
Daily ETH/USDT chart. Source: Trading View
ETH/USDT has entered the triangle again and the bulls are trying to push the price above the moving averages. If successful, the pair may rise to the resistance line of the triangle. Stops and closes above this level can signal the start of a new possible uptrend.
Contrary to this assumption, if the price falls below the moving averages, the bears will again try to drag the pair below the triangle reference point. If this happens, the pair could bid again at $2,300. If this support also breaks, the decline could extend to $2,159.
BNB / US dollar
BNB fell to a strong support area from $330 to $320 on Feb 24 as buyers entered and stopped the fall. The sharp rise pushed the price back above the $350 breakout level.
BNB/USDT daily chart. Source: Trading View
The bulls are trying to push the price towards the moving averages as the bears are expected to create a strong defense. If the price drops from the moving averages, the bears will try to fall again and keep the BNB/USDT pair below $350, challenging the support area.
Alternatively, if the bulls push the price above the 50-day Simple Moving Average (SMA) of $411, this would mean that the selling pressure could be eased. The pair could then rise to general resistance at $445.
XRP/USD
Ripple (XRP) returned from the $0.62 support on Feb 24, but the bulls failed to push the price above the general resistance on the 50-day SMA ($0.72). This led to the formation of a long-legged doji candlestick pattern.
Daily XRP/USDT chart. Source: Trading View
The bulls are again trying to push the price above the moving averages. If they succeed, the XRP/USDT pair may converge on a downtrend line. The bulls must remove this hurdle to signal a possible change in the short-term trend. The pair may then try to move up to $0.91 and then to $1.
Conversely, if the price falls from the moving averages, this will indicate that the bears continue to sell on the rise. After that, the bears will resume selling and try to pull the pair to a strong support area from $0.62 to $0.55.
