Bitcoin (BTC) has been facing strong resistance near $52,000, increasing the likelihood of a short-term correction. This sideways movement led to a net outflow of approximately $36 million from spot Bitcoin exchange-traded funds (ETFs) on Feb. 21, according to BitMEX Research and other sources. However, the bleeding stopped on Feb. 22, with net inflows of around $251 million into the ETFs.
Some analysts predict a potential pullback in the markets before the halving in April. Rekt Capital, a popular trader and analyst, noted that Bitcoin’s current bull phase is similar to the 2016 and 2020 bull runs. If history repeats itself, we could see a “pre-halving retrace” followed by a “post-halving reaccumulation period.”
Bitcoin’s hesitation to continue its rally triggered profit-taking in certain altcoins. A corrective phase is beneficial for the long-term health of the market as it weeds out weaker investors and allows stronger ones to buy in at lower levels.
What are the key support levels to keep an eye on for potential downside in Bitcoin and altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
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As we analyze Bitcoin’s recent price movements, it’s clear that the bulls were quick to buy the dip to $50,625, but their efforts were hindered by the resistance at $52,000.
Now, the bears are expected to make another attempt at pushing the price below $50,625. If they succeed, the BTC/USDT pair could experience a sharp drop to the strong support level at $48,970. However, a rebound from this level would signal a bullish sentiment and reaffirm the idea of buying on dips. In that case, the uptrend would resume with a break above $52,000, potentially leading to a price target of $60,000.
But the bears have their own plans. They will likely continue their efforts to push the price below $48,970, potentially triggering a sell-off and causing the pair to plummet to the 50-day SMA at $45,247.
Analysis of Ether’s Price
Ether (ETH) attempted to surpass the significant resistance level of $3,000 on February 22, but was met with resistance from the bears.
Sellers are currently pushing for a correction towards the breakout level of $2,717. This level is crucial as it is near the 20-day EMA ($2,734). A strong rebound from $2,717 would indicate that the bulls have successfully turned this level into support. The bulls will then make another attempt to break through the barrier at $3,000, potentially leading to a rise to $3,300 for the ETH/USDT pair.
In order to weaken the bulls, the bears must keep the price below $2,717. This would likely result in a drop to the 50-day SMA ($2,497). If this occurs, it could delay the start of the next uptrend.
BNB price analysis
BNB (BNB) has continued its upward trend since breaking above the $367 resistance on Feb. 21. The next target for the bulls is $400.
The bears will attempt to halt the rally at $400, but as long as the bulls hold strong, even minor dips will be quickly bought. This bodes well for a potential surge to $460.
Initial support levels can be found at $368 and the 20-day EMA ($344). However, if these levels fail, the correction may extend to the 50-day SMA ($318). This is a crucial level for the bulls to defend, as a break below it could signal a shift in the trend.
Solana market analysis
After bouncing off the 50-day SMA ($99) on February 21st, Solana (SOL) struggled to break above the 20-day EMA ($105).
The bears are expected to strengthen their position and push the price below the 50-day SMA, potentially leading the SOL/USDT pair to descend to $93 and then $80. However, this level may attract bullish buying activity.
To signal the end of the correction, the bulls must overcome the downtrend line. If successful, the pair could attempt a rally to $126, where the bears are likely to put up a strong resistance.
XRP price analysis
On February 22, XRP (XRP) formed an inside-day candlestick pattern, indicating a state of uncertainty between buyers and sellers. However, the following day, on February 23, the bears took control and pushed the price downwards.
The bears’ goal is to drive the pair to the strong support zone between $0.48 and $0.46. If this zone holds, it suggests that the XRP/USDT pair will continue to trade within the range of $0.46 and $0.57 for the next few days.
To break out of this range, the bulls will need to push the price above $0.57. If successful, this would signal the start of a new uptrend, with potential targets at $0.67 and $0.74.
Cardano price analysis
The Cardano (ADA) cryptocurrency is currently facing a challenge as it tries to hold onto the 20-day EMA ($0.57) against persistent selling pressure from bears.
If the bears continue to dominate, the ADA/USDT pair may drop further to the 50-day SMA ($0.53). This level is crucial for the bulls to defend, as a break below it could lead to a significant decline towards the key support at $0.46.
However, if the price manages to rebound strongly from the 20-day EMA, it will indicate that the sentiment remains positive and traders are buying on dips. In this case, the bulls may attempt to break through the resistance zone between $0.64 and $0.68.
Avalanche price analysis
Today we will be discussing the current state of Avalanche (AVAX) and its price movements. On Feb. 22, there was an attempted recovery, but the bears were quick to defend the 20-day EMA ($37.90). This indicates that any attempts at a recovery are being met with selling pressure.
The bears continued their selling on Feb. 23, causing the price to fall below the 50-day SMA ($35.96). If this downward trend continues, the AVAX/USDT pair could potentially drop to the strong support level at $32. However, a strong rebound from this level would suggest that the pair may trade within the range of $32 and $42 for a period of time.
Alternatively, if the price manages to turn upwards from its current level and breaks above the 20-day EMA, it would indicate strong buying activity at lower levels. This could potentially lead to a push above $42 and the completion of an inverse head-and-shoulders pattern.
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As the popularity of cryptocurrencies like Ethereum (ETH) continues to rise, it’s important to understand the distinctions between the various versions of the web.
Web 1.0 was a basic, static version of the internet, while Web 2.0 introduced interactive features and user-generated content. Now, with the emergence of Web 3.0, we are seeing the integration of blockchain technology and decentralized applications.
Today, many are interested in investing in DOT cryptocurrency and keeping up with the latest news and analysis through platforms like YouTube channels dedicated to crypto. Dogecoin (DOGE) is also gaining attention, with bulls attempting to push the price above the symmetrical triangle and towards the $0.09 resistance level.
However, if the price falls below the 50-day SMA ($0.08), the bears may regain control and push the price down towards the uptrend line. This highlights the importance of staying informed through reliable crypto sources and keeping up with breaking news in the industry.
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The cryptocurrency market, particularly Ethereum (ETH), has seen a surge in recent months. However, one of the major players in this space, Chainlink (LINK), has experienced a pullback in its uptrend. The bears are currently attempting to push the price down to the breakout level of $17.32.
If the price manages to rebound strongly from $17.32 and surpasses the 20-day EMA ($18.67), it will indicate that the bulls have successfully turned this level into a support. This will increase the likelihood of a retest of $20.85.
On the other hand, if the critical support at the 50-day SMA ($16.65) breaks, it will suggest that the bulls have lost control. This could potentially trigger a deeper correction to $15 and eventually $12.85.
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The current market for ETH cryptocurrency is being closely monitored by investors as the bulls and bears engage in a constant tug-of-war, with the bulls attempting to keep the price within the ascending channel pattern and the bears trying to pull it below.
With the 20-day EMA ($7.41) remaining relatively flat and the RSI hovering around the midpoint, neither side has a clear advantage. However, if the price drops below the 50-day SMA ($7.17), the DOT/USDT pair could potentially see a decline to $6.50.
On the other hand, a strong rebound from the current level would indicate that the bulls are fiercely defending the support line, potentially keeping the price within the channel for an extended period. In this case, the bulls will likely push for a breakout towards the channel’s resistance line.
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