Bitcoin (BTC) surged above the $40,000 psychological resistance on February 4th and maintained its success rate over the weekend. This increased the total value of the cryptocurrency market from $1.78 trillion on February 3 to nearly $2 trillion on February 6, according to data from CoinGecko.
Senator Ted Cruz’s new financial disclosure reveals that he purchased the latest Bitcoin crash on January 25 through brokerage River. On that day, bitcoin was trading between roughly $35,700 and $37,600. If the Texas senator keeps buying, he’s already in surplus.
Daily view of cryptocurrency market data. Source: Coin360
While the surge in the price of Bitcoin may have given the bulls a relief, data analyst Material Scientist warned that big traders with ticket volumes above $100,000 are selling higher.
Can Bitcoin Retain Or Increase Its Profit? If so, can altcoins join the party? Let’s examine the charts of the top 5 cryptocurrencies that are expected to rise in the short term.
Delivery every day
Participate
Market Outlook
E-mail address
Participate
By subscribing, you accept our
Terms of Service and Privacy Policy
Bitcoin / US Dollar
Bitcoin soared and closed above the 20-day exponential moving average ($39,600) on February 4, indicating that the bulls are trying to make a comeback. The day of low access on February 5th shows that traders who might buy at lower levels are not in a rush to take profits just yet.
BTC/USDT daily chart. Source: Trading View
The Relative Strength Index (RSI) has moved into the positive territory, indicating that the momentum is in favor of the bulls. However, a higher straight line is unlikely for the BTC/USDT pair.
The bears are likely to offer strong resistance in the area between the 50-day SMA ($42,860) and $44,500.
If the price breaks through the upper zone but does not fall below $39,600, this means that the level has turned into support. Then the bulls will once again try to push the pair out of the area. If it works, the next stop could be the 200-day simple moving average ($49,115).
BTC/USDT on the 4 hour chart. Source: Trading View
The 4 hour chart is showing an ascending triangle formation that ended with a breakout to close above $39,320. This bullish setup has a pattern target of $45,722. The price is currently closed in a narrow range from $42,168 to $40843.
A stop and a close of this area will signal a resumption of the uptrend. The pair can then climb to $44,500 where a rally could break the barrier. Conversely, if the price drops below $40,800, the pair could drop to the $39,320 level.
Ether / US Dollar
Ether (ETH) rose above the 20-day moving average ($2839) on February 4 and hit the descending channel’s resistance line. This level was a strong resistance in the past, so the Bears might once again try to defend it with all their might.
ETH/USDT daily chart. Source: Trading View
If the price drops from the area between the resistance line and the 50-day SMA ($3,256), this will be an indication that the bears are continuing to sell at higher levels. ETH/USDT may drop first to the 20-day moving average and then to $2,652.
If the price returns from this area, it will indicate a change in sentiment from selling on the rise to buying on the dip. Then the bulls make another attempt to push the pair above the lying area. If this happens, there may be a change of direction.
Alternatively, a break below $2,652 indicates that the pair may continue to trade within the channel for a few more days.
ETH / USDT on the 4-hour chart. Source: Trading View
On the 4-hour chart, you can see that the price is rising within the ascending channel pattern. The 20-EMA, 50-SMA and RSI appeared in positive territory, indicating that the bulls have the upper hand.
If the bulls push the price through the channel, the momentum could pick up and the pair could rise to $3,400 as the bears are expected to offer strong resistance. Conversely, if the price breaks below the 20-EMA, the pair may retreat towards the channel guide.
Near / US dollar
The NEAR protocol (NEAR) jumped from the psychological support area of $10 to $9.50 and broke the 20-day EMA barrier ($12.58) on February 4. Bears attempted to capture the prize during the 20-day moving average on February 5, but the bulls held in.
NEAR/USDT daily chart. Source: Trading View
The rally resumed today and the bulls are trying to push the price above the 50-day simple moving average ($14). If they manage to do so, NEAR/USDT could rise to the 50% Fib retracement at $15.05 and then to the 61.8% retracement at $16.36. The bears would probably put up a solid defense in this area.
