Bitcoin (BTC) and Ether (ETH) are trying to build on the recent upturn as US stock markets try to restart the emergency upturn, helped by Amazon’s strong results. John Bollinger, the creator of Bollinger Bands, recently tweeted that Ether seems to be a good place to add it to existing long positions.
Purpose The Bitcoin exchange traded fund also became the third largest inflow on February 1, according to data from Glassnode. This indicates that traders may have begun to accumulate bitcoin at lower levels.
Daily indicators for the cryptocurrency market. Source: Coin360
Although the cryptocurrency markets are in a bearish phase, investor interest remains high. The popular social media platform Stocktwits said they are partnering with FTX.US to launch cryptocurrency trading next quarter. The platform has five million monthly active users. This may encourage many new investors to start their journey of investing in cryptocurrencies.
Does Bitcoin’s strong movement and Altcoin identification indicate the beginning of a new bull trend? Let’s take a look at the charts of the top 10 cryptocurrencies to find out.
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Bitcoin / US dollar
Bitcoin declined minor support to $ 36,155.01 and the bulls pushed the price above the upper resistance zone between the 20-day exponential moving average ($ 38,974) and $ 39,600.
BTC / USDT daily chart. Source: Trading View
If the price stays above $ 39,600, the purchase may pick up speed and the BTC / USDT pair may rise to the 50-day Simple Moving Average (SMA) of $ 43,021. The bulls must overcome this obstacle to signal a possible trend change.
Contrary to this assumption, if the price falls below the current level, it will mean that the bears continue to sell at the rally. A break and closing below $ 36,155.01 could open the way for a January 24 intraday low of $ 32,911.17.
Ether / US dollars
Ether fell from the 20-day EMA ($ 2,795) on February 2 and fell below the $ 2,652 support on February 3, but the long light tail indicates strong purchases at lower levels today.
Daily ETH / USDT chart. Source: Trading View
The 20-day EMA has leveled off and the Relative Strength Index (RSI) is just above the midpoint, indicating that the bears are losing their grip. Continued beef purchases have pushed ETH / USDT above the 20-day moving average.
If the bulls keep the price above the 20-day moving average, the pair can rise to the channel resistance line. A break above the 50-day SMA ($ 3291) will signal a return to the driver’s seat.
This trend will be void if the price falls below the current level and falls below $ 2550. This can open the door for a channel guide line regression.
BNB / US Dollar
Binance coin (BNB) returned less support at $ 357.40, indicating that bulls are buying at lower levels. The bulls will now try to push the price above the 20-day moving average ($ 401).
BNB / USDT daily chart. Source: Trading View
If they are able to do so, the BNB / USDT may begin to move north towards the declining channel resistance line. A break and closure over this resistance will indicate a possible trend reversal.
Conversely, if the price falls below the 20-day moving average, this will indicate that sentiment is still negative and that traders are selling at the rally. The Bears will then look to push the pair below $ 357.4 and challenge the strong support range $ 330- $ 320.
ADS / USDT
Cardano (ADA) has traded between the key $ 1 support and the 20-day EMA ($ 1.12) in recent days. This tight trading is likely to lead to a directional move soon.
Daily ADA / USDT chart. Source: Trading View
A break and closing above the 20-day moving average will be the first sign that buyers are returning to the account. The ADA / USDT pair can then rise to the resistance line in the down channel, as the bears are likely to create a major problem. If the bulls overcome this obstacle, the pair can signal a trend reversal.
Contrary to this assumption, if the price falls below the moving averages, this will indicate that traders are selling on an upward trend. The Bears will then try to take the pair under $ 1. If they succeed, the fall could increase to $ 0.80.
Sol / US dollar
Solana (SOL) fell from the 20-day moving average ($ 110) on February 2, but the long tail of the February 3 candle suggests buying at lower levels. The bulls will again try to push the price above the breakout level of $ 116.