Price analysis for top 10 cryptocurrencies in February 2022.
Price analysis 2/16: BTC, ETH, SOL, BNB, XRP, ADA, AVAX, DOGE, LINK, DOT

Bitcoin (BTC) Continues to Rally Above $52,000, But Analysts Warn of Potential Correction

The recent surge in Bitcoin (BTC) has surpassed $52,000, with no signs of slowing down. This indicates a strong demand for Bitcoin, as highlighted by a report from on-chain data analytics firm CryptoQuant. According to their estimates, over 75% of new investments in Bitcoin are coming from spot Bitcoin exchange-traded funds.

However, many analysts believe that the rally may be getting overheated in the short term. While it’s difficult to predict a top when momentum is strong, history has shown that every euphoric moment eventually reaches a peak and is followed by a sharp correction.

Additionally, macroeconomic factors may hinder the market rally in the near future. The FedWatch Tool from CME Group previously predicted a 63% chance of a 25 basis points rate cut by the Federal Reserve in their March meeting. However, after recent data showed that the Consumer Price Index and the Producer Price Index for January were above market forecasts, this expectation has dropped to just 10.5%.

With all this in mind, it’s worth considering whether Bitcoin will experience a correction in the near term, and if so, how it will affect other cryptocurrencies. To gain a better understanding, let’s analyze the charts of the top 10 cryptocurrencies.

Bitcoin price analysis

The current price of Bitcoin has been facing resistance near $52,000, but the bulls have not given up their ground to the bears. This indicates that they are not in a rush to take profits.

The 20-day exponential moving average ($46,947) is sloping upwards, which suggests that the bulls have the upper hand. However, the relative strength index (RSI) is currently above 81, which may indicate that the recent rally has been too rapid in the short term.

If the price of Bitcoin were to turn downwards from its current level and bounce back from $48,970, it would signal that the bulls have successfully turned this level into support. This would increase the likelihood of the uptrend continuing.

As long as the price remains above $52,000, the BTC/USDT pair could potentially rally to $60,000, although this level is likely to provide strong resistance. On the other hand, if the pair were to fall below the 20-day EMA, it would be at risk of a short-term reversal.

The Rising Value of Ether: An Analysis

On February 14, the bulls successfully pushed Ether (ETH) above the $2,717 resistance, signaling a continuation of the uptrend. With the next target set at the significant $3,000 level, the outlook for Ether remains optimistic.

However, the recent surge has caused the RSI to enter the overbought zone, suggesting a potential short-term correction or consolidation. This could result in a minor dip in the coming days.

If the price rebounds from $2,717, it will confirm the bullish sentiment and indicate that traders are using any dips as an opportunity to buy. On the other hand, a drop below $2,717 would suggest a weakening of the bulls’ hold on the market. In this scenario, the ETH/USDT pair could potentially decline to the 20-day EMA ($2,526).

Solana price analysis

Solana (SOL) experienced a decline from $119 on February 14 and is expected to revisit the neckline of the inverse head-and-shoulders pattern at $107.

If the price bounces back from the neckline, it will indicate that the bulls have successfully turned the level into a support. This will significantly increase the chances of breaking above $126. The SOL/USDT pair will then aim for the pattern target of $135.

On the other hand, if the price breaks below the neckline, it will suggest that the bears are still dominating the market and selling on rallies. The bulls will try to halt the drop at the moving averages, but if they fail, the pair may plummet to $93.

BNB price analysis

After the failure of a bearish pattern, BNB (BNB) experienced a bullish surge, with buyers successfully pushing the price above the descending triangle pattern on Feb. 8. This was followed by a break above the key resistance level of $338 on Feb. 15.

The presence of a long wick on both the Feb. 15 and Feb. 16 candlesticks indicates that bears are attempting to halt the upward momentum near $366. However, in order to weaken the bulls, sellers will need to push the price below $338. If this occurs, the BNB/USDT pair may see a drop to the 20-day EMA ($322).

On the other hand, if the price consolidates near its current level, it will suggest that the bulls are anticipating a continuation of the upward trend. A break above $366 will likely lead to a potential rise towards $400.

XRP price analysis

On February 14, XRP (XRP) saw a rise from the 20-day EMA ($0.53) and broke above the 50-day SMA ($0.55) on February 15, indicating a steady increase in buying at higher levels.

The current price has now reached the downtrend line, where there is expected to be a fierce battle between the bulls and the bears. If the bulls come out on top, the XRP/USDT pair could potentially surge towards $0.67. However, there may be a minor resistance at $0.62, but it is likely to be overcome.

On the other hand, if the price sharply declines from its current level and breaks below the 20-day EMA, it will indicate that the bears are strongly defending the downtrend line. This could result in the pair falling to $0.50.

Cardano price analysis

After struggling for a few days, Cardano (ADA) gained momentum on February 14 and broke above the immediate resistance at $0.57.

The upward trend of the 20-day EMA ($0.54) and the positive RSI suggest that bulls have a slight advantage. Although there is a minor hurdle at $0.62, it is expected to be surpassed. This could lead the ADA/USDT pair to rally towards the strong overhead resistance at $0.68.

On the downside, the key support to monitor is at the moving averages. If the 50-day SMA ($0.53) is breached and closed below, it could indicate that the recent breakout was a trap for bulls. In this scenario, the pair may experience a sharp decline towards the solid support at $0.46.

Avalanche price analysis

The recent performance of Avalanche (AVAX) has been driven by bullish momentum, pushing the price above the crucial $42 resistance level. However, the long wick on the Feb. 15 candlestick indicates a lack of sustainability at higher levels.

If the price dips, the first line of support is at the 20-day EMA ($37.87). A rebound from this level would increase the chances of a breakout above $42, completing a bullish inverse H&S pattern and potentially leading to a rally towards $50.

Alternatively, a break below the moving average would suggest a potential range-bound movement between $32 and $42 for the AVAX/USDT pair.

Dogecoin price analysis

Dogecoin (DOGE) has shown signs of a bullish trend as it bounced off the 20-day EMA ($0.08) on February 14 and broke through the downtrend line. This suggests that the bulls are gaining control of the market.

If the price can maintain its position above the downtrend line, we can expect the DOGE/USDT pair to gain momentum and push towards the resistance zone of $0.10 to $0.11. However, it is likely that the bears will put up a strong defense at this level.

On the other hand, if the price starts to fall and breaks below the 20-day EMA, it may indicate that every increase in price is being met with selling pressure. In this scenario, the pair could decline towards the uptrend line and eventually reach the strong support level at $0.07.

Understanding the Evolution of the Internet: Web 1.0, 2.0, 3.0, and 4.0

Recent discussions about the Federal Reserve meeting and its impact on the cryptocurrency market have sparked interest in digital currencies like Dogecoin (DOGE). Despite facing some selling pressure near $20.85, Chainlink (LINK) has remained resilient, indicating a positive sentiment and potential for an uptrend continuation.

The 20-day Exponential Moving Average (EMA) at $18.41 and the Relative Strength Index (RSI) in positive territory further support the bullish outlook. A break above $20.85 could pave the way for a move towards the pattern target of $21.79.

However, the 20-day EMA serves as a critical support level. A breach below this level could result in a sharp decline towards $17.32 for the LINK/USDT pair.

Polkadot price analysis

Polkadot (DOT) has been trading above the 50-day Simple Moving Average (SMA) of $7.25 for the past two days, indicating bullish momentum in the market.

The moving averages are on the verge of a bullish crossover and the Relative Strength Index (RSI) is in the positive zone, signaling a potential comeback for the bulls. The 20-day Exponential Moving Average (EMA) of $7.20 is expected to act as a strong support level, while the bulls will aim to push the price towards $8.58.

This optimistic outlook will be invalidated if the price experiences a sharp decline and falls below the moving averages. In such a scenario, the pair could drop to $6, which is likely to attract significant buying pressure from the bulls.

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