The price of Bitcoin (BTC) rose over the weekend as the bulls try to force a trend reversal while the bears try to stem the relief. A look at the resource on the Whalemap network showed that $ 38,000 is a critical area for whales during any correction, as whales gathered in this area last week.
On the other hand, trader Pentoshi believes that Bitcoin may face tough resistance near its annual opening price in 2022 of around $ 46,000. But if bitcoin remains strong, Pentoshi expects altcoins to start working, especially since many of them have corrected sharply in recent months.
Daily indicators for the cryptocurrency market. Source: Coin360
In the meantime, traders are likely to look for clues in the US stock markets as Bitcoin has shown a strong correlation with Nasdaq in recent days.
Does a sharp jump in the price of bitcoin mean a change in trend? Can an improvement in sentiment increase altcoins? Let’s take a look at the charts of the top 10 cryptocurrencies to find out.
Bitcoin / US dollar
Bitcoin continued to rise gradually and reached the 50-day Simple Moving Average (SMA) at $ 42,809. The bears may try to defend this level because if they do not, it will mean a trend reversal.
BTC / USDT daily chart. Source: Trading View
The rising 20-day exponential moving average (EMA) ($ 40,008) and Relative Strength Index (RSI) are in positive territory, indicating a slight advantage for the bulls. Over the 50-day SMA, the BTC / USDT can rise to $ 45,456. If the bulls pass this hurdle, the pair can test the 200-day SMA again ($ 49,175).
Alternatively, if the price falls below the current level of $ 45,456, the bears will try to take the price below $ 39,600. This is an important level to keep an eye on because if the bulls do it for support, it will signal bottom.
On the other hand, a break and closing below $ 39,600 may indicate that the current bullfight may act as a rally in a sold-out bear market.
Ether / US dollars
Ethereum (ETH) continued to rise gradually, reaching the line of resistance of the descending channel. The Bears are expected to build a strong defense in the area between the resistance line and the 50-day SMA ($ 3241).
Daily ETH / USDT chart. Source: Trading View
However, an increase in the 20-day EMA ($ 2,871) and the positive territory RSI point to an advantage for buyers. If the bulls push the price above the 50-day SMA, the ETH / USDT could rise to the 200-day SMA ($ 3543).
Contrary to this assumption, if the price falls below the current level or the 50-day simple moving average, this will mean that the bears are active at higher levels. The bears will then try to pull the pair below the 20-day moving average. If successful, the couple can challenge the strong support of $ 2,652.
BNB / US Dollar
Binance Coin (BNB) rose above the 20-day moving average ($ 408) on February 5, indicating that the bulls are trying to return. Buyers will now try to push the price above the channel resistance line and the 50-day SMA ($ 458).
BNB / USDT daily chart. Source: Trading View
If they do, it will be a signal that the downtrend may be over. The 20-day EMA has turned higher and the RSI has moved into positive territory, indicating that the bulls have the upper hand.
Over the 50-day SMA, the BNB / USDT may rise to the psychological level of $ 500, as bears may rise again against strong resistance.
This positive forecast will be invalid if the price falls from the resistance line. Such a move will indicate that the bears have not given up and continue to sell at the rally. A break below the 20-day moving average may indicate that the pair may remain inside the channel for a few more days.
ADS / USDT
Cardano (ADA) returned from strong support at $ 1 and broke above the 20-day moving average ($ 1.13) on February 4th. On February 5 and 6, the bears tried to bring the price back below the 20-day moving average, but the bulls did not give up.
Daily ADA / USDT chart. Source: Trading View
This indicates that the bulls are trying to defend the 20-day EMA. If the price rises above the 50-day SMA ($ 1.24), the ADA / USDT may rise to the declining channel resistance line.
A break and closure across the channel may indicate that the downward trend may end. The pair can then rise to $ 1.60 and then to general resistance at $ 1.87. This positive outlook will be reversed by a breach and will close below $ 1. Such a movement may indicate a resumption of a downward trend.