Price analysis 2/26: BTC, ETH, ADA, BNB, DOT, XRP, LTC, LINK, BCH, XLM

Bitcoin and most major altcoins remain rangebound with the exception of Cardano.

Every bull market witnesses periodic pullbacks, where the weaker hands sell anticipating a top and the stronger hands accumulate for the long term. Data from Coinbase Pro shows two large Bitcoin (BTC) outflows this week, suggesting that institutions are likely continueing to buy the current dip.

Comparing historical data, on-chain analytics resource Whalemap, recently said that previous macro tops in Bitcoin in 2017 and 2019 coincided with thousands of large Bitcoin transactions worth $5-7 million. However, the researchers believe there is “no such FOMO in sight for BTC.”

Daily cryptocurrency market performance. Source: Coin360

JPMorgan strategists Joyce Chang and Amy Ho recently endorsed a 1% allocation to Bitcoin in multi-asset portfolios “to achieve any efficiency gain in the overall risk-adjusted returns of the portfolio.”

With gold and the S&P500 both seeing a downturn in the short term, investors looking to hedge their portfolios may look for alternatives such as cryptocurrencie, which may limit the downside for Bitcoin.

While data suggests that the downside is limited, let’s analyze the charts of the top-10 cryptocurrencies to determine where buyers may step in.

BTC/USD

There is a tug of war currently going on between the bulls and the bears. The bulls attempted to resume the up-move on Feb. 25, but could not sustain the higher levels. Bitcoin reversed direction and broke below the 20-day exponential moving average ($48,159), which shows selling by the bears at higher levels.

BTC/USDT daily chart. Source: TradingView

However, the long tail on today’s candlestick shows that bears are not able to sustain the price below the 20-day EMA. This suggests traders are buying on dips.

The flat 20-day EMA and the relative strength index (RSI) near the midpoint suggest a possible consolidation in the near term. The support of the said range could be at $41,959.63, which is just above the 50-day simple moving average ($40,914).

If bears can sink the price below the 50-day SMA, the selling could intensify and the pair could even drop to $28,850.

Conversely, if the bulls can propel the price above $52,040.95, a retest of $58,341.03 may be on the cards.

ETH/USD

Ether (ETH) could not rise above the 20-day EMA ($1,686) on Feb. 24, which suggests the bears are defending this level. The biggest altcoin turned south on Feb. 25 and fell to the 50-day SMA ($1,498).

ETH/USDT daily chart. Source: TradingView

Although the price dipped below the 50-day SMA today, the bears could not break the Feb. 23 intraday low at $1,350. This shows a lack of selling pressure at lower levels.

The bulls have pushed the price back above the 50-day SMA. If they can sustain the momentum and propel the ETH/USD pair above the 20-day EMA, it could enhance the prospects of retesting $2,000.

On the other hand, if the price again turns down from the 20-day EMA, it will suggest a change in sentiment from buying the dips to selling the rallies. If the bears break the $1,350 support, the pair may drop to $1,000.

ADA/USD

Cardano (ADA) is in a strong uptrend and has broken into the top-three cryptocurrencies by market capitalization for the first time. The bulls attempted to push the price above $1.20 on Feb. 25 but failed. However, the bulls successfully flipped $0.9817712 to support today, which suggests aggressive buying on every minor dip.

ADA/USDT daily chart. Source: TradingView

The buyers have driven the price above the $1.20 overhead resistance, indicating the resumption of the uptrend. The altcoin could now rally to the next target objective at $1.25.

Both moving averages are sloping up and the RSI in the overbought territory, suggesting that bulls are in control.

This bullish view will be invalidated if the ADA/USD pair fails to sustain the breakout and sharply reverses direction, breaking below the 20-day EMA ($0.92).

BNB/USD

The failure of the bulls to push Binance Coin (BNB) above the downtrend line on Feb. 24 may have attracted another bout of profit-booking by traders. The altcoin has pared most of the gains made on Feb. 19.

BNB/USDT daily chart. Source: TradingView

If the current rebound sustains, the bulls will make one more attempt to push the price above the downtrend line. If they succeed, it will suggest that the short-term correction could be over. The BNB/USD pair may then rise to $300 and then to $348.6969.

The upsloping 20-day EMA ($192) and the RSI in the positive zone suggest bulls have the upper hand. Falling below the downtrend line and the 20-day EMA would invalidate this bullish scenario. Such a move could pull the price down to $118.

DOT/USD

Polkadot’s (DOT) sharp recovery on Feb. 23 faltered on Feb. 24 as the bulls could not push and sustain the price above the resistance line of the ascending channel. This may have attracted profit-booking from the dipbuyers.

DOT/USDT daily chart. Source: TradingView

The buyers are currently attempting to defend the 20-day EMA ($30.30). If they manage to sustain the bounce, the DOT/USD pair will again try to break out of the resistance line of the channel and retest the all-time high at $42.2848.

Conversely, if the pair again goes down below the resistance line of the channel, the bears will try to sink the price under the 20-day EMA. If they succeed, the pair may drop to the support line of the channel.

The 20-day EMA is gradually sloping up and the RSI is above 61, indicating a minor advantage to the bulls.

XRP/USD

The long tail on the Feb. 23 candlestick shows buying on dips, but the bulls could not keep up the momentum and push XRP price above the 20-day EMA ($0.048) on Feb. 24. This showed that demand dried up at higher levels.

XRP/USDT daily chart. Source: TradingView

The price has again dipped back to the 50-day SMA ($0.40). A lack of a strong rebound could attract further selling and the XRP/USD pair may drop to $0.359. A break below this support could clear the path for a fall toward $0.25.

Contrary to this assumption, if the pair sustains the current bounce, the bulls will make one more attempt to push the price above the $0.50 overhead resistance. If they succeed, the pair may consolidate between $0.65 and $0.359 for a few days.

LTC/USD

Litecoin (LTC) rallied above the 20-day EMA ($192) on Feb. 25, but the bulls failed to sustain the higher levels as seen from the long wick on the day’s candlestick. This suggests that traders are booking profits at higher levels.

LTC/USDT daily chart. Source: TradingView

However, the long tail on today’s candlestick suggests that bulls are buying the dips to the 50-day SMA ($166). If the bulls can push the price above the 20-day EMA and the $205.186 overhead resistance zone, the LINK/USD pair may rise to $230.

Contrary to this assumption, if the bulls fail to sustain the current rebound, the pair may U-turn and drop below the 50-day SMA and the uptrend line. If that happens, the pair may slide to $120.

LINK/USD

Chainlink (LINK) could not climb back into the ascending channel on Feb. 24, attracting profit-booking from the aggressive bulls who may have purchased the dip on Feb. 23. The altcoin turned down on Feb. 25 and dipped back to the 50-day SMA ($24.70) today.

LINK/USDT daily chart. Source: TradingView

The downsloping 20-day EMA ($28.80) and the RSI in the negative zone suggest bears have the upper hand. If the price slips below the 50-day SMA, the decline could extend to the critical support at $20.111.

Contrary to this assumption, if the current rebound off the 50-day SMA sustains, the bulls will make one more attempt to push the price above the 20-day EMA. If they succeed, the LINK/USD pair may begin a new uptrend.

BCH/USD

The relief rally in Bitcoin Cash (BCH) could not even rise to the 20-day EMA ($578) on Feb. 24 and 25, indicating a lack of urgency among the bulls to buy at these levels. The price turned down on Feb. 25 and dropped to the uptrend line.

BCH/USD daily chart. Source: TradingView

The downsloping 20-day EMA and the RSI in the negative zone suggest bears are in control. If the sellers sink the price below the uptrend line, the BCH/USD could start a deeper correction to $370.

On the contrary, if the bulls can build up on the current rebound off the uptrend line, the pair may rise to the 20-day EMA. A breakout of this resistance could push BCH price to $631.71.

XLM/USD

Stellar Lumens (XLM) could not rise above the 20-day EMA ($0.430) on Feb. 24 and 25, which shows the bears are selling on rallies to this resistance. The altcoin pulled back on Feb. 25 and fell to the critical support level at $0.35.

XLM/USDT daily chart. Source: TradingView

The downsloping 20-day EMA and the RSI in the negative territory suggest advantage to the bears. If the sellers can sink the price below the support line of the descending channel, the XLM/USD pair may decline to $0.23.

Conversely, if the bulls can sustain the current rebound off $0.35, the pair may rise to the 20-day EMA. A breakout of this resistance will suggest the bulls are back in the game. The pair could then rally to the resistance line of the channel.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Focus on DeFi ‘fairness’ benefits Holochain, Orion Protocol and Dodo

Building real-world solutions that address scalability, data privacy and high Ethereum fees are adding value to Holochain, Orion Protocol and Dodo.

Bitcoin’s (BTC) strong bull run and the immense popularity of the decentralized finance space have attracted several new investors to cryptocurrencies. A report from Crypto.com shows a massive increase in crypto users as the figure rose from 66 million in May 2020 to 106 million by January this year. 

Crypto market data daily view. Source: Coin360

Contrary to the popular notion that new crypto users are mostly speculating on the price, data from Unchained Capital shows that investors who bought in the past three to five years are still holding and are not yet tempted to book profits.

Unlike the 2017 bull market where many low-cap altcoins rallied, the current bull trend has rewarded projects with strong fundamentals. Let’s have a look at three such tokens and also analyze their charts.

HOT/USD

Holochain (HOT) aims to provide the solution for the scalability problems which may be a limiting factor in the crypto sector. Holochain wants to give control of data and privacy back to the people, eliminating large corporations and middlemen.

To achieve that, Holo, a distributed peer-to-peer hosting platform, acts as the link between the web and the Holochain apps. Holochain wants to make this technology available to users who can access the apps in a web browser. If this needs to be done, the technology must have vast scalability, fast speeds, and it should also be financially viable. The team at Holochain believes they are on the path to achieving this goal.

As part of the process, Holochain launched an app called Elemental Chat that runs on HoloPorts. The team is also planning to enable web users to log into Elemental Chat through the HoloPort. This will put the protocol’s scalability claims to the test and help to further fine-tune the project.

The team has also outlined the progress on the upcoming milestones of the Holo suite of products that will be progressively released in the future. If the team delivers on its promises, the protocol may attract investor attention.

HOT surged from $0.0007817 on Feb. 8 to an intraday high at $0.00424 on Feb. 21, a 442% rally within two weeks. This up-move had pushed the relative strength index (RSI) above 92 on Feb. 21, indicating the market was extremely overbought in the short term.

HOT/USDT daily chart. Source: TradingView

That resulted in profit-booking on Feb. 22 and 23, which pulled the price down to the 61.8% Fibonacci retracement level at $0.0021028. But the positive sign is that the long tail on the candlesticks on both days showed strong buying at lower levels.

However, traders who are stuck at higher levels are dumping their positions on rallies, as seen from the long wick on the Feb. 24 candlestick.

After the large intraday range of the past few days, the HOT/USD pair has formed an inside day candlestick pattern today, indicating a balance between supply and demand. The pair may now consolidate for a few days.

If the bulls can push the price above $0.00363, a retest of $0.00424 is possible. A breakout of this level could start the next leg of the up-move that may reach $0.0055629.

Conversely, if the bears sink the price below $0.0028, the pair may drop to the 20-day exponential moving average ($0.0020).

ORN/USD

As the decentralized finance space grows, many new projects are being announced on a regular basis. It becomes difficult for investors to keep track of all of them. Hence, a liquidity aggregator that connects to several decentralized and centralized exchanges in order to swap pools and provide access from a single platform may be sought after and this is what the Orion protocol (ORN) aims to do.

The protocol plans to offer its investor’s a variety of revenue streams. The Orion Liquidity Boost Plugin offers increased liquidity to its partners and has already onboarded Polkastarter and many other blockchain projects.

Orion’s Launchpad Liquidity has partnered with DAO Marker and DuckDAO, which will enable projects launch incubated projects on the launchpad’s own platform

Orion recently launched the staking calculator, allowing ORN token holders to calculate the staking rewards and attain APY's of up to 38%.

After launching the first phase of the Orion Terminal’s mainnet on Dec. 15, the team plans to add several features like derivatives, leveraged ETFs, contract trading, NFTs, lending, margin trading and staking of any digital asset by 2021.

As more products are launched, the revenue is likely to increase and that may benefit ORN token holders.

ORN has been in a strong bull run this year. It rallied from $4.3014 on Feb. 8 to an intraday high at $15.20 today, a 253% rally in just over two weeks. As a result, the RSI has surged to above 91 levels, indicating the possibility of a short-term fall or a range-bound trading action.

ORN/USDT daily chart. Source: TradingView

The bears tried to stall the rally on Feb. 22 and Feb. 23, but the long tail and the positive closes of each day show that the bulls purchased the dips and resumed the rally.

However, today it looks as if traders booked profits and a retest of the 38.2% Fibonacci retracement level at $11.4379 is possible. 

If the ORN/USD pair rises from this support level, it will indicate strong demand at lower levels. That could result in a retest of $15.20 and a breakout of this resistance may propel the pair to $20.

On the other hand, a break below $10.2759 could pull the price down to the 20-day EMA ($8.21). Such a deep fall could delay the next leg of the up-move.

DODO/USD

The DeFi space has been attracting investor attention in the past few months. However, the growing popularity has clogged the Ethereum network gas fees have soared to unsustainable levels. Therefore, traders are searching for options that are on competing networks and charge fewer fees. Binance Smart Chain has been one of the major beneficiaries of this trend.

DODO is a decentralized exchange that uses the Proactive Market Maker (PMM) algorithm, which the team claims is better than automated market makers. DODO offers several features such as trading, aggregation, initial DEX offerings, and mining.

DODO introduced Crowdpooling in January, and this feature aims to provide equal opportunity to investors by addressing the biggest issues being faced by new projects. If successful, Crowdpooling will help prevent frontrunning, insufficient liquidity, and the high costs associated with attracting liquidity. The first phase of the DODO V2 Beta crowdfunding pool called 'ShuttleOne' was a huge success as it was oversubscribed by 173 times.

DODO token was listed on Binance on Feb. 19 following the DODO V2 Public Beta launch on the Ethereum Mainnet and Binance Smart Chain on Feb. 22. There are also several incentive programs available on BSC.

DODO price rallied from an intraday low at $2.788 to an intraday high at $10 on Feb. 19. The token had strong listing gains but since then, the price has been in a corrective phase.

DODO/USD 4-hour chart. Source: TradingView

The bulls attempted to start a rebound off $3.50 on Feb. 23, but the bears continue to sell on minor rallies, indicating a negative sentiment. However, a minor positive is that the bulls have been defending the $4.50 level for some time.

If the price turns up from the current level and breaks above $5.660, the DODO/USD pair may rise to $7.50. This level is likely to act as a stiff resistance but if crossed, the pair could rally to $8.75 and then retest $10. The next leg of the uptrend may resume above this level.

Conversely, if the bears sink the price below $4.50, a drop to $3.50 is possible. The selling could intensify if the $3.50 to $2.788 support cracks.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Price analysis 2/24: BTC, ETH, BNB, DOT, ADA, XRP, LTC, LINK, BCH, XLM

Bitcoin price is attempting to flip the $50,000 level back to support, while many altcoins are capitalizing on BTC's consolidation by moving higher.

Institutional investors continue to pour money into the crypto sector even with the current dip below $45,000. On Feb.24, business intelligence firm MicroStrategy announced that it had recently purchased over $1 billion worth of Bitcoin (BTC) at an average rate of $52,765 per coin. This takes the company’s total holding to 90,531 Bitcoin.

Another company that bought Bitcoin during the current market correction is Square. The company said it had acquired roughly “3,318 Bitcoin at an aggregate purchase price of $170 million.”

These purchases by institutional investors show they are bullish on the long-term prospects of Bitcoin and believe that it is a good buy near $50,000.

Daily cryptocurrency market performance. Source: Coin360

While the institutional purchases are a bullish sign, traders must also remember that for every buyer, there is a seller. Glassnode data suggests that Bitcoin whales, holding between 1,000 Bitcoin to 10,000 Bitcoin and “humpback whales” holding more than 10,000 Bitcoin have sold more than 140,000 Bitcoin in February.

In the past, the whales swayed the crypto markets at their will. But the entry of institutional investors has reduced their dominance. Therefore, along with the whales, traders must also keep an eye on the institutional activity.

While large investors can buy and hold for the long-term, the smaller investor would do well to buy at the right time to make the most of the limited available capital. Let’s study the charts of the top-10 cryptocurrencies to determine the trend.

BTC/USD

Bitcoin’s pullback from the 20-day exponential moving average ($48,323) on Feb. 22 was greeted with aggressive selling on February 23. The bears dragged the price below the channel, but the long tail on the day’s candlestick shows buying at lower levels.

BTC/USDT daily chart. Source: TradingView

The buyers are currently attempting to keep the BTC/USD pair inside the channel. However, the inside day candlestick pattern today suggests indecision among the bulls and the bears. The flat 20-day EMA and the relative strength index (RSI) just above the midpoint also suggest a balance between supply and demand.

If the bulls can sustain the price above $50,000, the pair will try to rise to the resistance line of the ascending channel. The next leg of the uptrend may begin after the price breaks above the all-time high at $58,341.03.

Contrary to this assumption, if the bears again sink the price below the channel, the pair may drop to $45,000 and then to the 50-day simple moving average ($40,541). A break below this support could signal a deeper correction to $28,850.

ETH/USD

Ether (ETH) fell below the support line of the ascending channel and the 50-day SMA ($1,487) on Feb. 23, but the bulls purchased the dip and managed to keep the price inside the channel.

ETH/USDT daily chart. Source: TradingView

The bulls are currently attempting to push the price above the 20-day EMA ($1,728). If they succeed, the ETH/USD pair may again try to rise to the resistance line of the channel.

However, the 20-day EMA has started to turn down and the RSI is near the midpoint, which suggests that the bears are trying to make a comeback.

If the price turns down from the 20-day EMA, the bears will once again try to sink and sustain the pair below the 50-day SMA. If they can manage to do that, the pair may enter a deeper correction and slump to $1,000.

BNB/USD

Binance Coin (BNB) remains volatile within a large intraday trading range. The bears pulled the price down to the 20-day EMA ($182) on Feb. 23 but the altcoin made a smart recovery as seen from the long tail on the day’s candlestick.

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for BNB on Feb. 23 prior to the recent price rise.

The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

Cointelegraph Markets Pro - VORTECS™ Score (green) vs. BNB price

Even as Binance Coin’s price started to correct from $273 on Feb. 23, the VORTECS™ score started to turn up from 71.

The score reached 82 just after the announcement of UFT token listing on Binance and this was followed by several other revelations related to BNB’s integration to the DeFi space. Following these announcements and the bullish outlook seen in the VORTECS™score, BNB price started to rally from $201.

That was soon followed by a sharp recovery in the price. After a brief dip, the VORTECS™ score started to strengthen from 71 and reached 80 as the price recovered to $271 on Feb. 24.

BNB/USDT daily chart. Source: TradingView

The bulls are currently attempting to push the price above the downtrend line, but the long wick on the candlestick shows selling at higher levels.

If the price again turns down from the downtrend line, the BNB/USD pair could drop to the 20-day EMA. A break below this support could intensify the selling and drag the price down to $118.

Conversely, if the bulls can push and sustain the price above the downtrend line, the BNB/USD pair may rally to $300 and then to $348.6969.

DOT/USD

The long tail on the Feb. 22 and 23 candlesticks shows that traders are aggressively buying the dip in Polkadot (DOT).

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for Polkadot on Feb. 23, prior to the relief rally from the intraday lows.

The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity

Cointelegraph Markets Pro - VORTECS™ Score (green) vs. DOT price

The VORTECS™ score for DOT moved above 70 on Feb. 23 when the price was at $36.78. Even as the price continued to fall, the VORTECS™ score reached 82 when DOT’s price was below $30. This strength in the VORTECS™ score was followed by a sharp recovery in price to $36 on Feb. 24.

DOT’s recovery coincided with the rebound in most major cryptocurrencies, which followed Bitcoin’s relief rally from the $45,000 intraday low made on Feb. 23 to about $50,000 on Feb. 24.

DOT/USDT daily chart. Source: TradingView

The bulls are currently attempting to push and sustain the price back above the resistance line of the ascending channel. If they succeed, the DOT/USD pair may rally to $42.2848.

A breakout and close above the all-time high could open the gates for a rally to the psychological level at $50. The upsloping moving averages and the RSI near the overbought territory suggest advantage to the bulls.

This bullish view will invalidate if the pair turns down sharply from the current levels and plummets below the support line of the ascending channel.

ADA/USD

The bears once again tried to sink Cardano (ADA) below the 20-day EMA ($0.867) on Feb. 23 but failed. This shows the sentiment remains positive and traders are viewing the dips as a buying opportunity.

ADA/USDT daily chart. Source: TradingView

The bulls have again pushed the price above $0.9817712. If they can sustain the price above the psychological level at $1, a retest of $1.1980811 is possible. A breakout and close above this resistance may signal the resumption of the uptrend.

Both moving averages are sloping up and the RSI is near the overbought territory. This suggests the path of least resistance is to the upside.

This bullish view will be negated if the price turns down and breaks below the 20-day EMA. Such a move could pull the ADA/USD pair down to $0.6879684.

XRP/USD

XRP has been all over the place in the past few days. After the bulls failed to sustain the price above $0.65 on Feb. 22, the altcoin witnessed intense selling pressure and plunged to $0.365 on Feb. 23. However, the long tail on the day’s candlestick shows aggressive buying at lower levels.

XRP/USDT daily chart. Source: TradingView

Buying on dips and selling on rallies is a sign of consolidation. The XRP/USD pair could trade between $0.359 and $0.65 for a few days. The flattish 20-day EMA ($0.499) and the RSI near 50 also point to a possible range-bound action for a few days.

The next trending move could start after the bulls push and sustain the price above $0.65 or the bears sink the pair below $0.359. Until then, volatile range-bound action is likely to continue.

LTC/USD

The failure of the bulls to build upon Litecoin’s (LTC) recovery on Feb. 22 shows a possible change in sentiment. Traders seem to be using the rallies to book profits. The altcoin turned down on Feb. 23 and this may have caught the aggressive bulls on the wrong foot, resulting in liquidation of long positions.

LTC/USDT daily chart. Source: TradingView

The LTC/USD pair broke below the 50-day SMA ($166) on Feb. 23, but the bulls defended the uptrend line. However, any relief rally is likely to face stiff resistance at the 20-day EMA ($195) that has started to turn down.

If the bulls fail to drive the price above the 20-day EMA, the pair may witness one more bout of selling that could pull the price down to the $120 support.

This negative view will invalidate if the bulls can push and sustain the price above the 20-day EMA. Above this level, a retest of $246.9679 may be on the cards.

LINK/USD

Chainlink (LINK) plunged below the support line of the ascending channel on Feb. 23 and this could have trapped the aggressive bulls who had purchased the dip on Feb. 22. Stop losses may have triggered below $25.2312, which pulled the price down to the critical support at $20.1111.

LINK/USDT daily chart. Source: TradingView

The dip buyers purchased the fall on Feb. 23 and are currently attempting to push the price back into the ascending channel. However, the buyers are likely to face stiff resistance at the 20-day EMA ($29.58).

If the price turns down from the 20-day EMA, it will indicate that traders are selling on rallies. The bears will then try to sink the price back below the 50-day SMA and retest the $20.1111 support.

This negative view will invalidate if the bulls can push and sustain the price inside the ascending channel. Such a move could result in a rally to $34 and then to $36.9307.

BCH/USD

Bitcoin Cash (BCH) sold off on Feb. 23 and broke below the 50-day SMA ($514). However, the bulls purchased the dip to the uptrend line and are currently attempting to push the price back above the $539 resistance.

BCH/USD daily chart. Source: TradingView

The 20-day EMA ($596) has turned down and the RSI is just below the midpoint, suggesting a marginal advantage to the bears.

The sellers are likely to defend the 20-day EMA. If the price turns down from this resistance, it will suggest that traders are selling on rallies. A break and close below the uptrend line could clear the path for a decline to $370.

Contrary to this assumption, if the bulls can push and sustain the price above the 20-day EMA, the BCH/USD pair may rise to $631.71 and then to $745.

XLM/USD

Stellar Lumens (XLM) plunged below the $0.35 support on Feb. 23, but the long tail on the day’s candlestick suggests the bulls bought the dip. The altcoin is currently trading inside a descending channel.

XLM/USDT daily chart. Source: TradingView

If the bulls can push the price above the 20-day EMA ($0.439), the XLM/USD pair could rise to the resistance line of the channel. A breakout of the channel will indicate that the bulls are back in the game. The buyers will then try to propel the price to $0.600681.

On the contrary, if the price turns down from the 20-day EMA and plummets below $0.35, it could open the doors for a deeper correction to $0.23.

The flat 20-day EMA and the RSI near the midpoint do not indicate a clear advantage either to the bulls or the bears.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Price analysis 2/22: BTC, ETH, BNB, DOT, ADA, XRP, LTC, LINK, BCH, XLM

Bitcoin and altcoins both saw a strong bounce off their intraday lows, which signals that traders still view dips as buying opportunities.

Every uptrend witnesses periodic bouts of profit-booking as short-term traders tend to unwind positions either on adverse news or at critical technical resistance levels. This occurred with Bitcoin (BTC) today as the price momentarily dropped below $48,000 and traders scrambled to close or top up positions before being liquidated.

Elon Musk’s tweet on Feb. 20 that said Bitcoin prices “seem high” and the U.S. Treasury Secretary Janet Yellen’s warning today on Bitcoin being “extremely inefficient” could have dampened short-term sentiment.

Daily cryptocurrency market performance. Source: Coin360

Another possible factor that may have exacerbated the fall could have been the unwinding of excessively leveraged long positions. About $1.64 billion worth of Bitcoin futures positions were liquidated during today's sharp pullback.

However, derivatives data for Bitcoin futures do not show any negative development, as highlighted by Cointelegraph Markets analyst Marcel Pechman.

Let’s analyze the charts of the top-10 cryptocurrencies to spot the critical levels on the upside and the key support levels on the downside.

BTC/USD

Bitcoin broke above the resistance line of the ascending channel on Feb. 19, but could not pick up momentum. This showed that the current uptrend was tiring out. Traders aggressively booked profits today, which pulled the price down to the 20-day exponential moving average ($48,081).

BTC/USDT daily chart. Source: TradingView

However, the lower levels continue to attract buyers as seen from the long tail on the daily candlestick. If the price sustains above the midpoint of the channel, the bulls will again try to push the pair above the channel.

If they manage to do that, the BTC/USD pair could resume the uptrend. The next target on the upside is $60,974.43 and then $66,000. The upsloping moving averages and the relative strength index (RSI) in the positive territory suggest that bulls are in control.

Contrary to this assumption, if the price sustains below the midpoint of the channel, the bears will again try to break the 20-day EMA support. If they manage to do that, the pair may drop to the 50-day simple moving average ($39,885).

ETH/USD

Ether (ETH) turned down from the resistance line of the ascending channel on Feb. 20, indicating that traders booked profits after the price reached the psychologically important level at $2,000.

ETH/USDT daily chart. Source: TradingView

The selling continued today and the ETH/USD pair dropped to the support line of the ascending channel. However, the positive sign is that the bulls purchased the dip as seen from the long tail on the day’s candlestick.

If the buyers can push and sustain the price above the 20-day EMA ($1,753), the positive momentum may remain intact.

On the contrary, if the price sustains below the 20-day EMA, the bears will try to sink the pair below the channel and the 50-day SMA ($1,465). If they succeed, the correction could deepen to $1,200 and then to $1,000.

BNB/USD

Binance Coin (BNB) has been witnessing volatile moves in the past few days. After the sharp rally on Feb. 19, traders aggressively booked profits on Feb. 20. The bulls tried to resume the uptrend on Feb. 21, but the higher levels have again attracted profit-booking.

BNB/USDT daily chart. Source: TradingView

The bulls are currently attempting to defend the zone between the 50% Fibonacci retracement level at $233.3485 and the 61.8% retracement level at $206.1262. If they succeed, the BNB/USD pair may continue the volatile range-bound action for a few more days.

On the contrary, if the bears sink the price below $206.1262, the decline could extend to the 20-day EMA ($168). This is an important support to keep an eye on because a break below it will suggest a trend change and a likely fall to $118.

DOT/USD

Polkadot (DOT) broke above the ascending channel on Feb. 19 and rose to a new all-time high at $42.2848 on Feb. 20. However, the long wick on the day’s candlestick showed profit-booking at higher levels.

DOT/USDT daily chart. Source: TradingView

After forming an inside day candlestick pattern on Feb. 21, the DOT/USD pair slumped back into the channel today. However, the bulls bought the dips and have pushed the price back above the channel.

The buyers will now try to push the price above $42.2848 and resume the uptrend. On the other hand, the bears will try to sink the pair back into the channel. If they succeed, the pair may drop to the 20-day EMA ($28.89).

ADA/USD

Cardano (ADA) surged above the $0.9817712 overhead resistance on Feb. 20 and reached $1.1980811. However, the long wick on the daily candlestick showed profit-booking at higher levels.

ADA/USDT daily chart. Source: TradingView

The selling intensified today and that pulled the ADA/USD pair down to the 20-day EMA ($0.834). However, the long tail on today’s candlestick shows aggressive buying at lower levels.

If the price sustains above $1, the bulls will try to resume the up-move. A breakout of $1.1980811 could open the doors for a rally to $1.25 and then $1.50.

Conversely, if the price slips below $0.9817712, the pair may again drop to the 20-day EMA. This is an important support to watch out for because if it cracks, the correction may deepen to $0.6879684.

XRP/USD

XRP continues to trade inside the $0.50 to $0.65 range. The altcoin bucked the trend today and rallied while most other major cryptocurrencies were witnessing sharp selling.

XRP/USDT daily chart. Source: TradingView

The price had rallied to $0.65155 today but the bulls could not sustain the higher levels. This shows the bears have not yet thrown in the towel.

However, the upsloping 20-day EMA ($0.50) and the RSI in the positive territory suggest the path of least resistance is to the upside. If the bulls can propel and sustain the price above $0.65, the rally may extend to $0.78608.

This positive view will invalidate if the price turns down from the current levels and breaks below the $0.50 support. If that happens, the XRP/USD pair may drop to $0.3855.

LTC/USD

The bulls could not sustain Litecoin (LTC) above the $240 overhead resistance from Feb. 17 to Feb. 21. This failure to resume the uptrend could have attracted profit-booking from short-term traders, which resulted in a sharp fall today.

LTC/USDT daily chart. Source: TradingView

The LTC/USD pair broke below the 20-day EMA ($198) and the $185.5821 support today, but the long tail on the day’s candlestick shows the bulls purchased this dip. The flattening 20-day EMA and the RSI just above the midpoint, suggest a balance between supply and demand.

If the price sustains above the 20-day EMA, the bulls will again try to resume the uptrend. On the contrary, if the price again slips below the 20-day EMA, the pair may drop to the 50-day SMA ($165). A break below this support could pull the pair down to $120.

LINK/USD

Chainlink (LINK) turned down from the resistance line of the ascending channel on Feb. 20 and formed a Doji candlestick pattern on Feb. 21. The uncertainty of the Doji candlestick was resolved to the downside today.

LINK/USDT daily chart. Source: TradingView

The LINK/USD pair plunged below the 20-day EMA ($30) and the support line of the channel today. However, the long tail on the candlestick shows aggressive buying by the bulls at lower levels.

If the bulls can sustain the price inside the channel, it will suggest that the uptrend remains intact. On the contrary, if the price again breaks below the channel, it will indicate a possible trend change.

The next critical support on the downside is the 50-day SMA ($23.82) and if this support also cracks, the decline may extend to $20.1111.

BCH/USD

The range-bound action in Bitcoin Cash (BCH) resolved to the downside today when the price dipped below the $670 support. This breakdown showed that the equilibrium had tilted in favor of the bears.

BCH/USD daily chart. Source: TradingView

The BCH/USD pair broke below the 20-day EMA ($610) and fell to an intraday low at $533.33 today. However, the bulls aggressively purchased the dip below the $539 support, resulting in a sharp rebound.

If the price sustains above the 20-day EMA, the bulls will again try to push the price back into the $670 to $745.39 range. If they succeed, it will suggest that the current correction could be over.

On the contrary, if the price sustains below the 20-day EMA, the pair may again drop to $539 and then to the 50-day SMA ($510).

XLM/USD

Stellar Lumens (XLM) failed to resume its uptrend in the past few days, which showed a lack of demand at higher levels. This could have attracted profit-booking from short-term traders who may have dumped their positions today.

XLM/USDT daily chart. Source: TradingView

The XLM/USD pair broke below the 20-day EMA ($0.44) and the $0.409 support today, but the bulls purchased at lower levels. The flattish 20-day EMA and the RSI below 58 suggest the bullish momentum may be weakening.

If the bulls fail to sustain the price above the 20-day EMA, the bears will again try to sink the price below $0.409. If they manage to do that, the pair could slide to the $0.35 support.

On the other hand, if the price sustains above the 20-day EMA, the bulls will again try to resume the uptrend. A break above $0.535 will suggest an advantage to the bulls and may result in a retest of $0.600681.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Top 5 cryptocurrencies to watch this week: BTC, AAVE, ATOM, NEO, VET

Select altcoins continue to move higher as traders attempt to push Bitcoin price to $60,000.

The Purpose Bitcoin (BTC) exchange-traded fund debuted on the Toronto Stock Exchange on Feb. 18 and has quickly ramped up trading volumes of about $400 million worth of shares in two days. This is quite impressive, considering that the equity market in Canada is only a fraction of the size of the U.S. markets. This shows strong demand for Bitcoin and investor's preference to take the ETF route to establish fresh positions.

Last week, Bitcoin reached another important milestone when it hit the critical $1 trillion market capitalization on Feb. 19, making it the sixth asset on the list of top market cap companies in the world. 

The involvement of institutional investors and a market cap of over $1 trillion could allay the concerns of manipulation and liquidity raised by the U.S. Securities and Exchange Commission in the previous years as it rejected Bitcoin ETF applications. 

Crypto market data daily view. Source: Coin360

In a recent interview with CNBC, Ark Invest CEO Cathie Wood said that “the probability of an ETF has gone up.” Wood said the new SEC chairman Gary Gensler, who taught a digital currency class at the Massachusetts Institute of Technology, could be more open to crypto, increasing the likelihood of an approved Bitcoin ETF.

Although Bitcoin’s fundamental factors continue to improve, the near term could experience some turbulence due to the steepening of the U.S. Treasury curve.

Let’s analyze the charts of the top-5 cryptocurrencies that indicate the possibility of the resumption of the uptrend in the short term.

BTC/USD

Bitcoin broke above the resistance line of the ascending channel on Feb. 19 and the bulls have managed to sustain the breakout. This suggests that traders continue to buy at higher levels.

BTC/USDT daily chart. Source: TradingView

The BTC/USD pair had formed a Doji candlestick pattern on Feb. 20, indicating indecision among the bulls and the bears about the next directional move. That uncertainty has resolved to the upside today and the bulls will now try to propel the price to $60,974.43.

The 20-day exponential moving average ($47,450) is sloping up and the relative strength index (RSI) is in the overbought zone, which indicates that bulls have the upper hand.

Contrary to this assumption, if the price re-enters the channel, the bears will try to pull the price down to the 20-day EMA. A break below the channel will indicate a possible change in trend and the pair may then correct to the 50-day simple moving average.

BTC/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the pair remains in a strong uptrend and the bulls have aggressively purchased the dips to the 20-EMA. The bears will try to stall the current uptrend at the resistance line of the ascending channel.

If they succeed, the pair may again drop to the 20-EMA. A bounce off this support will suggest that the trend remains strong and the bulls are not waiting for a deeper correction to buy. The momentum could pick up if the bulls can propel and sustain the price above the channel.

On the contrary, if the bears can sink the price below the 20-EMA, it will suggest profit-booking by traders. The trend could weaken if the pair plunges below the channel.

AAVE/USD

AAVE has been consolidating between $392.50 and $545 for the past few days. A consolidation after a strong uptrend is a positive sign as it suggests that traders are not rushing to the exit because they anticipate higher levels in the future.

AAVE/USDT daily chart. Source: TradingView

The 20-day EMA ($427) is flat and the RSI is just above 56, which suggests that the range-bound action may continue for a few more days.

If the buyers can push the price above $480, the AAVE/USD pair may rise to $545. A breakout and close above the $545 to $581.667 resistance zone could start the next leg of the uptrend that may reach $697.50 and then $814.397.

On the other hand, if the bears can sink and sustain the price below $392.50, it will suggest that supply exceeds demand. That could start a deeper correction to the 50-day SMA ($297).

AAVE/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the price has been oscillating between $500 and $392.50. If the bears sink the price below the $392.50 support, the pair could drop to $300 and then to the 61.8% Fibonacci retracement level at $267.094.

Contrary to this assumption, if the bulls can push the price above the 50-SMA, a move to $500 is possible. A break above this resistance will enhance the prospects of a move to $545 and then $581.667.

ATOM/USD

Cosmos (ATOM) is currently correcting in a strong uptrend. While the pullback is five days old, the bears have not yet been able to pull the price down to the 38.2% Fibonacci retracement level at $19.007. This shows a lack of sellers at lower levels.

ATOM/USDT daily chart. Source: TradingView

A shallow correction is usually a sign of strength and it increases the possibility of a retest of the $26.55 overhead resistance. The rising moving averages and the RSI in the positive territory suggest that bulls have the upper hand.

If the bulls can thrust the price above $26.55, the next leg of the uptrend could begin. The ATOM/USD pair could then rally to $32.173. If the bulls can conquer this level, the up-move may extend to $40.

On the contrary, if the pair continues to fall, a drop to the 20-day EMA ($18.19) is possible. A strong bounce off this support could keep the uptrend intact but a break below it will suggest a deeper correction to the 61.8% retracement level at $14.347.

ATOM/USDT 4-hour chart. Source: TradingView

The 4-hour chart is currently correcting inside a descending channel. The moving averages are on the verge of a bearish crossover and the RSI is in the negative territory, indicating a minor advantage to the bears.

However, if the price rises from the support line of the descending channel, it will indicate accumulation at lower levels. On a break above the moving averages, a move to the resistance line of the channel is possible.

A breakout and close above the channel could result in a retest of $26.55. On the other hand, a break below the channel may weaken sentiment. The pair could then decline to the 50% retracement level at $16.677.

NEO/USD

NEO broke and closed above the $47.444 resistance on Feb. 19. The bears attempted to fake this breakout and trap the aggressive bulls on Feb. 20 when they pulled the price back below $47.444.

NEO/USDT daily chart. Source: TradingView

However, the bulls had other plans. They aggressively purchased the dip and have pushed the price above the psychological resistance at $50 today. This may start the next leg of the uptrend that could reach $60.373 and then $64.95.

The upsloping moving averages and the RSI in the overbought territory indicate that bulls are in control.

But if the bulls fail to sustain the price above $50, it will suggest that traders are booking profits at higher levels. A break below the 20-day EMA ($37.80) will signal a possible change in trend.

NEO/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the formation of an ascending triangle, which has a pattern target at $58.588. Generally, the price turns down and retests the breakout level but sometimes, when the trend is strong, the price only consolidates before resuming the up-move.

The bulls are currently defending the $50 support. If the price rises from the current level and breaks above $54.191, the uptrend could resume.

This positive view will invalidate if the pair turns down from the current level and breaks below the triangle. Such a move may result in a fall to $36.30.

VET/USD

After the sharp rally from $0.026714 to $0.060774, VeChain (VET) has largely held the 38.2% support at $0.047763 on a closing basis, which shows accumulation at lower levels. The rising moving averages and the RSI in the overbought zone suggest the path of least resistance is to the upside.

VET/USDT daily chart. Source: TradingView

If the bulls can drive the price above the overhead resistance at $0.060774, the VET/USD pair could start the next leg of the up-move. The target level to watch on the upside is $0.085172 and then $0.10.

Contrary to this assumption, if the bulls fail to propel the price above the overhead resistance, the VET/USD pair may consolidate between $0.060774 and $0.0424 for a few more days. The trend will tilt in favor of the bears if they can sink and sustain the price below $0.0424.

VET/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that both moving averages are flat and the RSI is just above the midpoint, indicating a balance between supply and demand.

However, the pair has formed an ascending triangle pattern that will complete on a breakout and close above $0.060774. This bullish setup has a pattern target of $0.079148.

On the other hand, if the price slips below the trendline of the ascending triangle, it will invalidate the pattern and open the doors for a fall to $0.042.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Price analysis 2/19: BTC, ETH, BNB, DOT, ADA, XRP, LTC, LINK, BCH, XLM

Bitcoin’s rally to a $1 trillion market cap could attract more buyers to the crypto sector and boost the price of several altcoins.

Bitcoin (BTC) price finally reached a $1 trillion market capitalization on Feb.19, which is an important milestone because as BTC gains size, the digital asset will continue to attract new institutional investors who will consider allocating a portion to their portfolios.

Glassnode data suggests that high-net-worth individuals are continuing to pump money into Bitcoin. The number of Bitcoin addresses holding more than $1 million worth of Bitcoin has risen to 94,000.

According to data from Whalemap, another positive sign is that the number of addresses holding between 1,000 to 10,000 BTC has been increasing throughout the current bull run, whereas in the previous bull phase this figure declined.

Daily cryptocurrency market performance. Source: Coin360

Ballet crypto wallet CEO and founder Bobby Lee believes the crypto bull market could continue and Bitcoin may “hit $200,000-$250,000 this year.” Lee also expects Bitcoin’s price to reach $500,000 and its market cap to rise above that of gold by 2028.

However, everyone is not bullish on Bitcoin. JPMorgan Chase analysts believe that Bitcoin is trading at much higher valuations than its fair value and is behaving like a cyclical asset. They also termed crypto assets as “the poorest hedge for major drawdowns in equities.”

As the crypto bull run continues, let’s study the charts of the top-10 cryptocurrencies to spot the critical levels on the upside.

BTC/USD

Bitcoin broke above the $52,599 resistance today and resumed its uptrend. The bulls are currently attempting to push the price above the ascending channel. If they manage to do that, the momentum could pick up and a rally to $60,974.43 is possible.

BTC/USDT daily chart. Source: TradingView

The upsloping moving averages and the relative strength index (RSI) in the overbought zone indicate that bulls are in control.

However, if the price turns down from the resistance line of the channel, the BTC/USD pair may drop to the midpoint of the channel where the bulls are likely to provide support. If this level holds, the pair could continue its upward journey towards the target objective.

The first sign of weakness will be a drop below the midpoint of the channel. That could drag the price to the support line of the channel. A break below this support will signal a possible trend reversal.

ETH/USD

Ether (ETH) resumed its uptrend by breaking above the $1,869.473 resistance on Feb. 18. The biggest altcoin is gradually marching towards the psychological level at $2,000 where the bears may again try to stall the rally.

ETH/USDT daily chart. Source: TradingView

However, if the bulls can propel the price above the resistance line of the ascending channel, the momentum could pick up and the ETH/USD pair may rally to $2,515. The rising moving averages and the RSI in the overbought territory signal that bulls are in command.

This assumption will be negated if the price turns down from the overhead resistance and breaks below the 20-day exponential moving average ($1,714). Such a move will suggest that traders are booking profits at higher levels. The trend could turn negative if the bears sink the price below the support line of the channel.

BNB/USD

Binance Coin (BNB) is witnessing a vertical rally, after having risen sharply in the past few days. The RSI has risen above 94, which suggests the up-move is extremely overbought in the short-term.

BNB/USDT daily chart. Source: TradingView

When traders fear missing a rally, they continue to buy at every higher level. Usually, such a rally ends with a blow-off top after the last bull has purchased. When the price starts to turn down, the momentum traders are the first to jump off the ship and that deepens the correction.

The long wick on today’s candlestick suggests traders are booking profits at higher levels. If the price dips below the 38.2% Fibonacci retracement level at $260.5707, it will suggest the bulls are not buying the dips anymore. That could pull the price down to the 61.8% retracement level at $206.1262.

A break below this support could lead to panic selling from short-term traders. The pair may then complete a 100% retracement of the entire rally, resulting in a drop to $118. Conversely, if the bulls push the price above $348.6969, a move to $400 is possible.

DOT/USD

The bears defended the resistance line of the ascending channel on Feb. 17 and Feb. 18 and they tried to pull the price down today. However, Polkadot (DOT) reversed the direction sharply from $29.50 and has currently risen above the channel.

DOT/USDT daily chart. Source: TradingView

If the buyers can sustain the price above the channel, the momentum could pick up and the altcoin may rally to $42.

If the bulls fail to sustain the price above the channel, the DOT/USD pair may re-enter the channel. If the bears can sink the price below $29.50, the pair may drop to the 20-day EMA ($25) and then to the support line of the channel.

If the price bounces off this support, it will suggest the uptrend remains intact, but a dip below the channel will signal a change in trend.

ADA/USD

Cardano (ADA) is gradually moving towards the resistance at $0.9817712. The rising moving averages and the RSI in the overbought zone suggest the possibility of a break above the overhead resistance is high.

ADA/USDT daily chart. Source: TradingView

If the bulls can thrust the price above the $0.9817712 to the $1 resistance zone, the ADA/USD pair could start the next leg of the uptrend. The target objective on the upside is $1.25 and then $1.50.

Contrary to this assumption, if the price turns down from the overhead resistance, the pair may drop to $0.8082031 and remain range-bound between these two levels.

The first sign of weakness will be a break below the 20-day EMA ($0.74) and the trend will tilt in favor of the bears if the pair plummets below $0.6879684.

XRP/USD

XRP has bounced off the 20-day EMA ($0.49) and the bulls are currently attempting to push the price to $0.65 where the bears may mount a stiff resistance. If the price turns down from the overhead resistance, the altcoin may consolidate between $0.50 and $0.65 for a few days.

XRP/USDT daily chart. Source: TradingView

If the price breaks below $0.50, it will suggest that bulls are not buying the dips anymore. That could pull the price down to the next support at $0.38550.

However, the upsloping 20-day EMA and the RSI above 61 suggest that the bulls currently have the upper hand. If the buyers can drive the price above $0.65, the XRP/USD pair may start the next leg of the uptrend, which could reach $0.78068.

LTC/USD

Litecoin (LTC) remains in an uptrend as it continues to make new 52-week highs. The bears tried to stall the up-move on Feb. 18 but they have not been able to sustain the price below $230.5305, which suggests the bulls are buying on dips.

LTC/USDT daily chart. Source: TradingView

Both moving averages are sloping up and the RSI is near the overbought zone, indicating advantage to the bulls. If the buyers can drive the price above $238.8071, the LTC/USD pair may rise to $256 and then $272.

Contrary to this assumption, if the price turns down from the current level and slumps below $220, it will suggest profit-booking by short-term traders. That could pull the price down to the 20-day EMA ($191). The trend will favor the bears if the pair drops and sustains below $185.5821.

LINK/USD

The bears could not sustain Chainlink (LINK) below the midpoint of the ascending channel on Feb. 17, which suggests that bulls are buying the dips and attempting to resume the uptrend today.

LINK/USDT daily chart. Source: TradingView

If the buyers can propel the price above $35.6945 and the resistance line of the ascending channel, the LINK/USD pair could pick up momentum and rally to $46. The upsloping moving averages and the RSI near the overbought territory favor the bulls.

However, the bears are unlikely to give up easily. They have successfully defended the resistance line of the channel on two previous occasions, hence they will again try to reverse the direction at the resistance line.

If they succeed, the LINK/USD pair could drop to the support line of the channel. A strong bounce off this support will keep the uptrend intact, but a break below the channel will signal a possible change in trend.

BCH/USD

Bitcoin Cash (BCH) has been range-bound between $670 and $745.39 for the past few days. If the price consolidates after a strong rally, it suggests that traders are not booking profits as they expect the uptrend to resume.

BCH/USD daily chart. Source: TradingView

If the buyers can propel the price above the $745.39 to $773.32 overhead resistance zone, the BCH/USD pair may start the next leg of the uptrend and soar to $900. The rising 20-day EMA ($589) and the RSI in the overbought zone indicate the possibility of an upside breakout.

Contrary to this assumption, if the price turns down from the current level or the overhead resistance and breaks below $670, the BCH/USD pair may start a deeper correction to the 20-day EMA ($589). A break below this support will indicate that bears have the upper hand.

XLM/USD

Stellar Lumens (XLM) has been trading close to the $0.50 resistance for the past four days, which shows a tussle between the bulls and the bears to establish supremacy. If the bulls overpower the bears and sustain the price above $0.517, a move to $0.600681 is possible.

XLM/USDT daily chart. Source: TradingView

The bears may again mount a stiff resistance at $0.600681, but if the bulls can push the price above it, the XLM/USD pair could rally to $0.796804. The upsloping moving averages and the RSI near the overbought zone suggest the path of least resistance is to the upside.

On the other hand, if the price turns down from the overhead resistance, the XLM/USD pair could drop to $0.50 and remain range-bound between these two levels for a few days. A break below the 20-day EMA ($0.43) will signal that bears are back in the game.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Exchange tokens BNB, HT, FTT and OKB are on fire in February — Here’s why

Increased trading volumes, innovative products and strong DeFi integration have helped BNB, HT, FTT and OKB soar in February.

Bitcoin’s (BTC) current bull run continues to attract institutional investors who are finally realizing its long-term potential. The latest to take the Bitcoin plunge is BlackRock Financial Management, which has “started to dabble a bit” in crypto investments, according to the investment giant’s chief investment officer Rick Rieder.

In another positive, investment advisory The Motley Fool projected that Bitcoin could rise to $500,000 over the next 15 years. The firm announced its plans to buy $5 million worth of Bitcoin and has also advised its 10X real-money portfolio members to make the digital asset a part of their core holding. The firm said it is not worried about short-term price fluctuations due to its long-term investment horizon.

Although Bitcoin garners most of the attention, there are several altcoins that have been skyrocketing in the past few days. One set of tokens that have been surging in February are exchange tokens.

Let’s look at the fundamentals of the top four exchanges that make them stand out and attractive compared to their competitors and analyze their charts to project the target on the upside.

BNB/USD

Binance Coin (BNB) is the biggest cryptocurrency exchange token with a market capitalization of over $40 billion. In a bull phase, trading activity surges and Binance has benefited from this. A sign of a good business is when it quickly adapts to the changing landscape.

When the decentralized finance boom happened, Binance was quick to jump on the bandwagon and add support to DeFi projects. Binance Smart Chain (BSC) has emerged as a possible substitute for the Ethereum network that is facing issues with high transaction fees.

BSC has grown in popularity and the total value locked (TVL) on the network has risen over $10.5 billion, according to data from Defistation. The two largest projects on BSC are Venus (XVS) and PancakeSwap (CAKE), which have $3.9 billion and $3.6 billion in TVL.

To attract further customers and projects, the BSC community reduced transaction costs to 10 Gwei from 15 Gwei. The current bull run has attracted a record number of new traders to the crypto space.

According to data from SimilarWeb, Binance was the third most popular website in the “Finance > Investing'' category, with 136 million monthly visitors in January making it the 381st most popular website worldwide. This web traffic is continuing to rise further in February.

Binance Coin has been in a phenomenal run in February putting it in third place by market capitalization. The token has rallied from $43.4331 on Feb. 1 to an intraday high at $284.08 today, a 554% gain within 19 days. The vertical rally has pushed the relative strength index (RSI) above 93, which suggests the token is extremely overbought.

BNB/USDT daily chart. Source: Tradingview

Such vertical rallies usually end up in a sharp correction. The first support on the downside is the 38.2% Fibonacci retracement at $220.6374 and then the 50% retracement at $201.04. If the price rebounds off this support zone, the bulls will once again try to resume the uptrend.

If they succeed in pushing the price above $284.08, the uptrend could resume, with the next target objective at $367.

On the other hand, if the bears sink the price below the 61.8% Fibonacci retracement at $181.4426, the BNB/USD pair could completely retrace the latest leg of the up-move and drop to $118, just below the 20-day exponential moving average at $125.

Such a deep fall will suggest the momentum has weakened and that could delay the next leg of the uptrend, keeping the pair stuck inside a range for a few days.

HT/USD

Huobi Token (HT) has also benefited during the current crypto bull run and its market cap has risen to over $3.69 billion.

Some of the steps taken by Huobi may have helped the platform attract traders. During a strong bull phase, traders use leverage and borrow money to trade. Huobi’s launch of crypto loans on Jan. 5 with up to 50% discount till Feb. 3 could not have come at a better time.

In addition, the launch of the Huobi Eco-Chain Heco mainnet on Dec. 21 could be seen as a long-term positive. Heco seems to have quickly picked up momentum with the core assets TVL reaching $1.38 billion on Feb. 5.

To further expand its services to the traders, Heco recently tied up with decentralized derivatives trading platform Injective, which could increase cross-chain derivatives adoption, enabling traders to bridge assets between the two entities. Additionally, Huobi DeFi labs has tied up with Kava Labs to expand into the DeFi market and offer its users access to the Kava ecosystem.

HT has surged from $6.4808 on Feb. 1 to an intraday high at $19.4555 today, a 200% rally within three weeks. This sharp up-move has pushed the RSI above 88, which shows the token is overbought in the near term.

HT/USDT daily chart. Source: Tradingview

The HT/USD pair is likely to face resistance between the $19.4017 and $20.3162 overhead resistance zone. If the price turns down from the zone, the first support is at the 38.2% Fibonacci retracement at $16.0981 and then at the 50% retracement at $15.0611.

A strong rebound off either support level will suggest the sentiment remains bullish and traders are buying on dips. If the bulls can thrust the price above the resistance zone, the next leg of the up-move to $25 could begin.

Conversely, if the price breaks below the 61.8% Fibonacci retracement at $14.0240, the correction may deepen to the 20-day EMA ($11.51). A break below this support will suggest that a short-term top is in place.

FTT/USD

After starting its journey like any other crypto exchange in April 2019, FTX Token (FTT) started innovating in 2020 and that has helped it attract a huge client base.

FTX has focused on adding several products that benefit the short-term momentum traders. In early 2020, the daily and weekly binary Bitcoin options were launched and that was followed by the introduction of leveraged tokens such as the 3x Long Bitcoin and 3x Short Litecoin.

The exchange further expanded its offering by starting tokenized equity trading where it allows traders to buy less than one share, which is useful for small traders who want to buy high-priced stocks. However, this service is currently not available to U.S. citizens.

Its innovative products such as pre-IPO futures contracts, thematic products, and prediction markets attract a diaspora of clients that are not covered by other exchanges. FTX quickly introduces products to fulfill the trader’s requirements. A recent example of that was the launch of a Wall Street Bets Index that will contain the most discussed stocks in the hugely popular r/Wallstreetbets Reddit group.

FTX’s Project Serum, the decentralized exchange and ecosystem, is an attempt to capture the DeFi crowd and it could add value in the long term if the innovation continues.

FTT has been in a strong bull run for the past few weeks. It has risen from $10.815 on Feb. 1 to an intraday high at $30.077 today, a 178% rally in 19 days. The rally has pushed the RSI deep into the overbought territory, which suggests the token could be due for a correction or consolidation.

FTT/USD daily chart. Source: TradingView

The long wick on today’s candlestick suggests profit-booking at higher levels. The first support on the downside is the 38.2% Fibonacci retracement level at $25.655 and below that at the 50% retracement at $24.289.

If the price rebounds off this support, it will suggest the sentiment remains bullish and traders continue to buy on dips. The bulls will then try to resume the uptrend by pushing the price above $30.077. If they succeed, the next leg of the uptrend could begin. The next target objective on the upside is $35.866 and then $37.232.

Conversely, if the bears sink the price below the 61.8% Fibonacci retracement level at $22.922, the correction could deepen to the 20-day EMA ($19.32). A strong rebound off this level will suggest the uptrend remains intact while a break below the 20-day EMA will tip the scales to the bears.

OKB/USD

OKEx (OKB) was struggling when the current bull market was starting last year. Rumors were afloat that its CEO was under criminal investigation and the exchange had halted withdrawals from mid-October to late November last year. Naturally, several investors fled the exchange when withdrawals resumed.

However, OKEx has taken certain steps to again attract clients. It started real-time settlements for all perpetual swaps, futures and options contracts in a phased manner from the end of December last year.

The exchange launched OKExChain mainnet on Dec. 31, 2020, offering an opportunity for the early adopters to earn about 10 million OKT tokens as rewards. On Jan. 22, two decentralized applications OKEx Swap and OKEx Farm were launched on OKExChain, enabling users to mine their OKT tokens.

OKEx recently announced plans to integrate with Bitcoin’s Lightning Network “in the coming quarter” experimenting with faster and cheaper Bitcoin transactions. The exchange also announced support for the simplified address format from Unstoppable Domains. OKEx is trying to make a comeback and only time will tell if it has succeeded in redeeming itself.

OKB has risen from $5.652 on Feb. 1 to an intraday high at $12.555 today, a 122% gain in less than three weeks. The token is currently in a strong uptrend but is nearing its target objective at $12.839.

OKB/USDT daily chart. Source: TradingView

If the bulls can push the price above $12.839, the uptrend could extend to $13.87 and then $15. However, the RSI has risen above 81 level, which suggests the OKB/USD pair is overbought in the short term.

If the price turns down from the current level or the overhead resistance, the first stop is likely to be a retest of the previous resistance turned support at $9.50. If the pair rebounds off this level, it will act as a new floor for launching the next leg of the uptrend.

On the contrary, if the pair dips and sustains below $9.50, a fall to the 20-day EMA ($8.3) is possible. A break below this support will tilt the advantage in favor of the bears.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Price analysis 2/17: BTC, ETH, DOT, ADA, XRP, BNB, LTC, BCH, LINK, XLM

Bitcoin price has posted all-time high today and that may pull select altcoins higher.

Bitcoin (BTC) is gradually gaining ground on gold, the traditional store of value. Data shows that one ounce of gold can only buy 0.0352 Bitcoin as of Feb. 17, the lowest amount of BTC eve. This shows that Bitcoin has been rewarding its investors much more than gold. 

Bitcoin has massively outperformed gold over various time frames. Even if the latest one-year data is considered, Bitcoin’s risk-adjusted return is 270% while gold's is only 24% as of Dec. 28, 2020.

The result further skews hugely in favor of Bitcoin if longer time frames of four years or eight years are compared.

In the past few years, Bitcoin has matured as an asset class. During the previous bull run in 2017, Bitcoin’s 60-day volatility was at 32%. But in the current bull phase, Bitcoin has recorded lower volatility at 14.25%. Analysts believe that as the institutional adoption increases, the volatility could drop further.

And there are no signs of a slowdown in the number of institutions showing interest in Bitcoin. Elliptic co-founder Tom Robinson told The Telegraph that many U.S. financial institutions “are seriously considering launching some type of cryptocurrency service.”

If the institutional adoption continues to grow, the sentiment is likely to remain positive. Let’s analyze the charts of the top-10 cryptocurrencies to spot the levels on the upside that may act as significant resistance.

BTC/USD

The psychological level at $50,000 saw only minor resistance to Bitcoin, which shows that the bulls are firmly in command and not hurrying to book profits as they anticipate the bull run to continue.

BTC/USDT daily chart. Source: TradingView

A new all-time high above $51,000 is a sign of strength. The upsloping 20-day exponential moving average ($43,451) and the relative strength index (RSI) in the overbought zone suggest bulls are in control.

If the bulls can sustain the price above $50,000 for three days, the BTC/USD pair could rally to $60,974.43 where the bears may step in.

On the downside, the first support is the 20-day EMA and if the bears can sink the price below it, the decline could extend to the 50-day simple moving average ($37,415). This is an important level to watch because a break below it will suggest a momentum shift to the bears.

ETH/USD

Ether (ETH) is currently range-bound between $1,658.572 and $1,869.473. The long tail on the Feb. 15 candlestick shows the bulls are buying on every minor dip. The buyers will now try to propel the price above $1,869.473.

ETH/USDT daily chart. Source: TradingView

If they succeed, the ETH/USD pair could start the next leg of the uptrend, which has a target objective at $2,000. This is an important resistance but if the bulls can drive the price above the channel, the momentum could accelerate. The next target objective on the upside is $2,515.

Contrary to this assumption, if the price fails to rise above $1,869.473, the pair may consolidate in the range for a few more days. A break below the 20-day EMA ($1,658) will be the first sign of weakness and a trend change will be signaled if the bears sink the price below the support line of the channel.

DOT/USD

Polkadot (DOT) rose to a new all-time high on Feb. 16 and followed it up with another new high today, which shows that the bulls are firmly in command. However, the bears are defending the resistance line of the channel.

DOT/USDT daily chart. Source: TradingView

If the bulls can thrust the price above the ascending channel, the momentum could pick up and the DOT/USD pair could rally to $42. On the other hand, even if the price sustains in the upper half of the channel, the uptrend may gradually continue.

The first sign of weakening momentum will be a break below the midpoint of the channel. If that happens, the pair may decline to the support line of the channel. This is an important support level because a break below it could indicate a trend change.

ADA/USD

After the sharp rebound from the lows on Feb. 15, Cardano (ADA) formed an inside day candlestick pattern on Feb. 16 and a Doji candlestick pattern today, which shows a balance between supply and demand.

ADA/USDT daily chart. Source: TradingView

The bulls will now try to push the price to $0.9817712. This level is likely to act as a stiff resistance but if the bulls can drive the price above it, the ADA/USD pair could rally to $1.25 and then to $1.50.

On the other hand, if the price turns down from the current level or the overhead resistance, the pair may drop to $0.687. A bounce off this level could keep the price range-bound between $0.687 and $0.981.

XRP/USD

XRP price attempted to bounce off $0.50 on Feb. 14 and 15, as seen from the long tails on the candlestick, but the bulls could not sustain the rebound. This suggests that demand dries up at higher levels.

XRP/USDT daily chart. Source: TradingView

The failure to achieve a strong rebound off a critical level suggests the momentum has weakened. The XRP/USD pair could now consolidate between $0.50 and $0.65 for a few days. A breakout of $0.65 could push the price to $0.78068.

Contrary to this assumption, if the price dips and breaks below the 20-day EMA ($0.48), the pair may decline to the 50-day SMA ($0.35).

BNB/USD

Binance Coin (BNB) broke out of the $117.7289 to $141.32 range it had been stuck in for the past few days. The momentum picked up today and the buyers easily propelled the price above the all-time high at $148.40.

BNB/USDT daily chart. Source: TradingView

A breakout to a new all-time high after a shallow correction shows that traders are buying on every minor dip and not waiting for a deeper correction to get in. The BNB/USD pair could now rally to $200.

However, traders should keep an eye on the RSI as it has been trading in the deeply overbought levels for the past few days. This suggests that the pair remains vulnerable to a correction or further consolidation.

The first sign of weakness will be a break below $141.32 and the trend may favor the bears if the $117.7289 support cracks.

LTC/USD

Litecoin (LTC) completed a successful retest of the $185.5821 level on Feb. 15 and the bulls are now attempting to resume the uptrend by pushing and sustaining the price above $230.5305. If they manage to do that, the altcoin could rally to $256 and then $272.

LTC/USDT daily chart. Source: TradingView

The upsloping moving averages and the RSI in the overbought zone indicate that bulls are in command. However, if the bears defend the overhead resistance, the LTC/USD pair may consolidate between $185 and $230 for a few days

This positive view will be invalidated if the pair turns down and breaks below $185.5821. Such a move will suggest that the supply exceeds demand. The next support on the downside is the 50-day SMA ($156).

BCH/USD

Bitcoin Cash (BCH) formed a long-legged Doji candlestick pattern on Feb. 15 and an inside day candlestick pattern on Feb. 16. Both these formations indicate indecision among the traders about the next directional move.

BCH/USD daily chart. Source: TradingView

If the uncertainty resolves to the upside and the bulls drive the price above the $745.39 to $773.32 overhead resistance zone, the BCH/USD pair could resume the uptrend and rally to $900. The upsloping moving averages and the RSI in the overbought territory suggest that the path of least resistance is to the upside.

Conversely, if the price turns down and slips below $670, the next stop could be the breakout level at $631.71. If this support also cracks, the decline may extend to the 20-day EMA ($563).

LINK/USD

Chainlink (LINK) had recovered sharply from the intraday lows on Feb. 15, but the bulls could not build upon the strength and push the price above the resistance line of the ascending channel. This attracted profit-booking from short-term traders and that pulled the price down to the midpoint of the channel.

LINK/USDT daily chart. Source: TradingView

The long tail on today’s candlestick shows the bulls are buying on dips. If they can sustain the recovery, the price may again rise to the resistance line of the channel. A break above the channel may start the journey towards the next target objective at $44.

On the contrary, if the price again turns down from the resistance line, the LINK/USD pair may continue its journey inside the channel. A breakdown and close below the channel will tilt the advantage in favor of the bears.

XLM/USD

Stellar Lumens (XLM) also formed an inside day candlestick pattern on Feb. 16, which shows indecision among the bulls and the bears. The bulls are currently attempting to push the price above $0.517.

XLM/USDT daily chart. Source: TradingView

If they succeed, it will suggest that demand exceeds supply and that could result in a retest of $0.600681. A breakout of this resistance will indicate the resumption of the uptrend. The rising moving averages and the RSI near the overbought zone suggest that bulls have the upper hand.

Contrary to this assumption, if the price turns down from the current level and slips below $0.409, it will suggest weakness and open the doors for a possible drop to $0.35 and then to the 50-day SMA ($0.31).

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Icon, Ravencoin and Lisk are riding the bull wave on possible future developments

Icon, Ravencoin and Lisk have major events coming up that could boost prices higher.

Bitcoin (BTC) created another milestone today when the price breached the $50,000 barrier. Bitcoin has now risen about 1,230% from a low of $3,803.58 on March 13 of last year to a new all-time high at $50,622 today.

This rally has been led by strong institutional demand that is showing no signs of stopping. MicroStrategy meanwhile said it plans to again raise $600 million through a sale of convertible notes and the proceeds will be used to buy Bitcoin.

While institutional investors continue to buy, Glassnode data suggests that long-term Bitcoin investors are using this rally to book profits. Bitcoin miners who have also been major sellers during the recent bull run have held back in February, which suggests that they are likely expecting even higher levels in the future.

The current crypto rally has been led by Bitcoin, but altcoins are also seeing their own bull run. Let’s study the fundamentals and technicals of three tokens that have made a strong dash to the upside in the past few days.

ICX/USD

The decentralized finance (DeFi) space has been on a tear for the past few months. So, when a project plans to enter the DeFi world, it is bound to evoke traders’ interest. The Icon (ICX) project is soon expected to take the DeFi plunge with the launch of BalancedDAO.

Another project keenly awaited is the Open money market, which plans to bridge the gap between legacy banking services and DeFi, enabling crypto investors to borrow fiat-backed assets against their crypto holdings.

When the anticipation of upcoming projects increase demand but there is no adequate supply, the price tends to rise. About 58.5% of the ICX circulating supply is staked in the network and with Binance also adding staking support to ICX, the supply could reduce further.

While attractive yields are important, the safety of funds is also a major factor in DeFi. Therefore, Icon has applied for K-ISMS certification from the Korea Internet and Security Agency for its ICONFi mobile app that will ensure security and privacy of data. This is likely to increase the confidence of investors in the project.

The upcoming release of Icon 2.0 promises to enhance several core features and redesign some of the current features that are expected to further boost interest and adoption of the protocol. The interoperability feature to support and power cross-chain DeFi solutions will be closely watched by the community.

ICX rallied from $0.6863 on Feb. 1 to $1.9331 today, a 181% rally in just over two weeks. Although the bears had pulled the price down to the 20-day exponential moving average ($1.16) on Feb. 15, the bulls aggressively purchased the dip, resulting in a sharp rebound.

ICX/USDT daily chart. Source: TradingView

However, the bears are not willing to give up without a fight. The ICX/USD pair is again facing stiff resistance just below the $2 level. The first support on the downside is the 38.2% Fibonacci retracement at $1.4568.

If the price rebounds off this support, it will suggest that traders continue to accumulate on minor dips. The bulls will then try to resume the uptrend by pushing the price above $1.9331. If they succeed, the next leg of the up-move to $2.50 is possible.

On the contrary, if the bears sink the price below $1.4568, the pair could fall to the 20-day EMA. This is an important level to keep an eye on because if the price rebounds off this level, it will suggest the uptrend remains intact. But if the level cracks, it will signal a possible change in the trend.

RVN/USD

But it is not only upgrades or partnerships that catch traders’ attention. Certain events can sometimes trigger the demand and that seems to have happened with Ravencoin (RVN).

The GameStop saga showed how centralized entities never offer a level playing field to the retail trader and the large players wield their power and get their way. This intensified the discussion and the need for decentralization and Ravencoin was one of the beneficiaries. GameStop stock price topped out on Jan. 28 and RVN started its up-move on Jan. 29.

The protocol allows anyone to tokenize their assets, which can be shares of companies, commodities, art, land deeds, energy credits, fun tokens, and much more. As the world moves towards digitization and decentralization, protocols such as Ravencoin may become an attractive alternative to traditional finance.

During strong bull phases, rumors also boost prices higher. The rumor of a possible Coinbase listing doing rounds in the community forums may also have provided fodder for the rally.

RVN soared from $0.02266 on Feb. 1 to an intraday high at $0.08863 on Feb. 14, a 291% rally in two weeks. The token formed a long-legged Doji candlestick pattern on Feb. 15 and has made an inside day candlestick pattern today. Both of these patterns suggest indecision among the bulls and the bears about the next directional move.

RVN/USD daily chart. Source: TradingView

If the price rises from the current levels and breaks above $0.08863, the next leg of the up-move could begin. The bears will then try to stall the uptrend in the $0.10 to $0.104 resistance zone.

However, the relative strength index (RSI) is in the deeply overbought territory, which points to a possible correction or consolidation in the short term.

If the price continues lower, the RVN/USD pair could drop to the 38.2% Fibonacci retracement level at $0.06057, and if this level also cracks, the next support is at the 20-day EMA ($0.044). Such a deep fall could delay the start of the next leg of the up-move.

LSK/USD

In a bull market, traders start to discount the future and price in the potential growth. The rally in Lisk (LSK) also seems to be built on the prospects of some important announcements that may trigger growth.

The team at Lisk promises a major upgrade with the launch of Lisk Core 3.0.0 in 2021, which is expected to bring a plethora of improvements to security, stability, technical aspects, scalability, and also reduced fees among others.

Along with this, details on the interoperability solutions are projected to be ready by spring after which the implementation could begin. A new developer program is also planned with lucrative awards that may attract developers to build applications on the platform.

Expectations can flare a rally only to a certain extent. After that, traders will look for results, which will then decide the direction of the token.

LSK surged from $1.2671 on Feb. 1 to an intraday high at $4.70 on Feb. 14, a 270% gain in two weeks. This rally pushed the RSI deep into the overbought territory, which could have triggered profit-booking by traders.

LSK/USD daily chart. Source: TradingView

The LSK/USD pair has broken below the 38.2% Fibonacci retracement level at $3.3886 and the next support is at the 61.8% retracement level at $2.5785. A sharp fall suggests the momentum has broken and it usually delays the start of the next up-move.

If the pair rebounds off $2.25785, it may consolidate in a wide range for a few days before starting the next move. The bulls will have to thrust the price above $4.70 to start the next leg of the uptrend, which has a target objective at $6.2099.

On the other hand, if the bears sink the price below $2.5785, the pair could drop to the 20-day EMA ($2.28).

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Price analysis 2/15: BTC, ETH, ADA, XRP, DOT, BNB, LTC, BCH, LINK, XLM

The sharp recovery in major altcoins and Bitcoin suggests the uptrend remains intact.

A large part of the current crypto bull run has been driven by institutional demand. But for the first time, the institutions may be stepping back. According to CryptoQuant, the Coinbase Premium Index — the difference in Bitcoin’s (BTC) price on Coinbase Pro and Binance — has turned negative, which suggests that pro traders may be taking profits.

The institutional selling needs to be monitored closely because roughly 3% of the Bitcoin in circulation is held by these investors. If they start to dump their positions, that could result in an exodus by other traders, leading to a sharp pullback.

Daily cryptocurrency market performance. Source: Coin360

In the past 24 hours, about $1.89 billion worth of crypto futures positions has been liquidated on various exchanges. However, most liquidations have happened on Binance, considered to be dominated by retail, while Bitfinex has seen the least. This prompted Bitfinex chief technology officer Paolo Ardoino to suggest that Bitfinex traders “use leverage slightly more carefully."

One of the main reasons for the sharp fall in altcoins could be attributed to the sharp rise in funding rates on Binance Futures, which surged to 0.3% to 0.7% from the average of 0.01%, which shows rampant speculation by novice traders.

However, after the shakeout, have the altcoins changed direction? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

BTC/USD

Bitcoin's (BTC) price rallied to $49,689 on Feb. 14, just missing the psychologically important level of $50,000 by a whisker. Although the bears tried to start a correction today, the long tail on the day’s candlestick suggests the bulls are in no mood to relent.

BTC/USDT daily chart. Source: TradingView

A shallow correction that could not even reach the breakout level at $41,959.63 indicates strength. The upsloping moving averages and the relative strength index (RSI) in the overbought zone suggest that bulls are in control.

If the bulls can sustain the buying pressure and push the price above $50,000, the BTC/USD pair may witness a short squeeze that could quickly propel the price to $60,974.43.

Contrary to this assumption, if the price again gets rejected near the $50,000 level, it will suggest that the bears are aggressively defending this resistance.

That could attract profit-booking from short-term traders, resulting in a fall to $44,000 and then to the 20-day exponential moving average ($41,975). A bounce off this support will suggest that the sentiment remains positive.

But if the bears sink the price below the 20-day EMA, the pair may drop to the 50-day simple moving average ($36,502). A break below this critical support may signal a possible change in trend.

ETH/USD

Ether (ETH) has been consolidating between $1,680.173 and $1,835.554 for the past few days. The bulls pushed the price above $1,835.554 consecutively over the past three days but could not sustain the breakout, which suggests that demand dries up at higher levels.

ETH/USDT daily chart. Source: TradingView

As the bulls failed to achieve a breakout, the bears tried to start a correction today. The ETH/USD pair dipped below $1,680.173, but the bulls aggressively bought the decline, resulting in a sharp rebound, as seen from the long tail on today’s candlestick.

If the bulls can now thrust the price above the $1,835.554 to $1,869.473 resistance zone, the pair may rally to the resistance line of the ascending channel at $2,000. This is a psychologically critical level where the bears may again mount stiff resistance.

The upsloping moving averages and the RSI near the overbought zone suggest that bulls are in command. This positive view will invalidate if the price again turns down from the overhead resistance and plummets below the 20-day EMA ($1,631).

ADA/USD

Cardano's ADA fell to the 20-day EMA ($0.66) today, but the bulls purchased this dip, which shows that sentiment remains bullish. The buyers will now try to push the price above the $0.9817712 resistance.

ADA/USDT daily chart. Source: TradingView

If they succeed, the ADA/USD pair may resume its uptrend, with the next target objective at $1.25 and then $1.50.

Contrary to this assumption, if the price turns down from the overhead resistance, the pair may consolidate in a large range between $0.981 and $0.687 for a few days.

This positive view will be negated if the bears sink and sustain the price below the 20-day EMA. Such a move will suggest that supply exceeds demand and will signal a possible change in trend.

XRP/USD

XRP price turned down from the overhead resistance at $0.65 on Feb. 14 and plummeted to the breakout level at $0.50. The retest was successful, as the altcoin bounced back sharply and has formed a long tail on the day’s candlestick.

XRP/USDT daily chart. Source: TradingView

If the bulls can push the price above $0.65, the XRP/USD pair could rally to $0.78068. The bears are likely to defend this level aggressively, but if the bulls can propel the price above the resistance, the pair may rally to $1.

On the other hand, if the price turns down from $0.65 once again, the pair may fall to $0.50 and then remain range-bound between these two levels for a few more days. A break below the 20-day EMA ($0.47) will be the first indication of a deeper correction to $0.3855.

DOT/USD

Polkadot's DOT turned down from the resistance line of the ascending channel on Feb. 13 and dipped to the 20-day EMA ($22.37) today. However, the sharp rebound from the 20-day EMA suggests strong demand at lower levels.

DOT/USDT daily chart. Source: TradingView

The DOT/USD pair may now again move up to the resistance line of the ascending channel. If the price breaks above the channel, the DOT/USD pair could pick up momentum and rally to $41.

However, if the bears defend the resistance line of the channel, the pair may gradually continue to move up. The trend will turn in favor of the bears if they can sink and sustain the price below the support line of the channel.

BNB/USD

Binance Coin (BNB) has been range-bound between $117.7289 and $141.32 for the past few days. A consolidation after a sharp uptrend is a positive sign, as it shows that traders are not hurrying to close their positions.

BNB/USDT daily chart. Source: TradingView

If the bulls can push the price above the $141.32 to $148.40 overhead resistance, the BNB/USD pair could resume the uptrend. The pair could then rally to the psychological resistance at $200.

Conversely, if the bears sink the price below the $117.7289 support, the pair could drop to the 38.2% Fibonacci retracement level at $105.7886. If this support also cracks, the decline may extend to the 20-day EMA ($92).

LTC/USD

Litecoin (LTC) broke out and held above the $185.5831 resistance on Feb. 12. This resumed the uptrend, and the bulls easily pushed the price above the psychological barrier of $200 on Feb. 13.

LTC/USDT daily chart. Source: TradingView

The LTC/USD pair turned down from $230.5305 on Feb. 14 and dropped to the breakout level at $185.5821 today. The long tail on the day’s candlestick suggests the retest of the breakout level was successful.

If the bulls can now thrust the price above $230.5305, the uptrend could extend to the next target at $256 and then $272.

Contrary to this assumption, if the price turns down from the current levels or the overhead resistance, then it may drop to $185.5821 and consolidate for a few days. The first sign of weakness will be a break below the 20-day EMA ($174).

BCH/USD

Bitcoin Cash (BCH) broke above the $631.71 resistance on Feb. 13 and rose to $750 on Feb. 14. The bears pulled the price below $631.71 today, but the bulls bought the dips aggressively.

BCH/USD daily chart. Source: TradingView

The buyers have sustained the momentum and pushed the price to a new 52-week high at $773.32. The next target objective on the upside is $900.

However, if the bulls fail to sustain the price above $750, the BCH/USD pair may again turn down to $631.71 and remain range-bound for a few days.

A break below $631.71 will indicate weakness and may result in a fall to $539. Such a move could delay the start of the next leg of the up-move.

LINK/USD

Chainlink's LINK broke above the resistance line of the rising wedge pattern on Feb. 13. This is a positive sign, as it invalidated the bearish setup. The bulls had pulled the price back into the wedge today, but the long tail on the day’s candlestick suggests the bulls aggressively bought the drop to the 20-day EMA ($27).

LINK/USDT daily chart. Source: TradingView

If the bulls can sustain the price above the wedge, it will indicate strength. A break above $35.6945 could resume the uptrend, with the next target objective at $41.

On the contrary, if the bears sink the price back into the wedge, it may catch several aggressive bulls off guard. That may pull the price down to the support line of the wedge. A break below this support could signal a trend change.

XLM/USD

Stellar's Lumen (XLM) corrected sharply today, but the long tail on the candlestick shows the bulls aggressively purchased the dip to the 20-day EMA ($0.409). In an uptrend, a strong rebound off the 20-day EMA suggests the bulls are accumulating on dips.

XLM/USDT daily chart. Source: TradingView

If the buyers can propel the price above the $0.600681 resistance, the XLM/USD pair may resume its uptrend. The next target on the upside is $0.79.

Contrary to this assumption, if the bulls fail to sustain the price above $0.50, the pair may again slide down to the 20-day EMA ($0.40). A break below this support could result in a fall to $0.35.

A deep correction in an uptrend usually indicates a loss of momentum. If that happens, the price may remain range-bound for a few days before starting the next trending move.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC.

Top 5 cryptocurrencies to watch this week: BTC, BCH, EOS, XMR, XTZ

Bitcoin is facing minor resistance near $50,000 but if this psychological barrier is crossed, a major breakout could occur in select altcoins.

Demand and supply metrics determine the price of an asset and data from Glassnode, an on-chain data firm, shows that Bitcoin’s (BTC) liquid supply has been decreasing since June 2020. This signals that traders owning Bitcoin are not selling their holdings.

While the supply is shrinking, demand has been going up in the past few months as an increasing number of institutional investors have been buying Bitcoin.

Bloomberg recently reported that Morgan Stanley Investment Management’s subsidiary Cointerpoint Global “is exploring whether the cryptocurrency would be a suitable option for its investors.”

According to Morgan Stanley’s website, Counterpoint Global chooses to invest in assets “whose market value can increase significantly for underlying fundamental reasons.” This suggests that the bank believes Bitcoin may be undervalued compared to its fundamentals.

Crypto market data daily view. Source: Coin360

 JPMorgan Chase also hinted that it might eventually introduce Bitcoin services. JPMorgan’s co-president Daniel Pinto believes that if investors and asset managers start using Bitcoin, the bank “will have to be involved.” Pinto however said that the current demand was not strong enough, but conceded it may grow in the future.

Even though Bitcoin has risen sharply in the past few months, its dominance has fallen from about 69.71% on Jan. 4 to 60.9% currently. This shows that altcoins have outperformed Bitcoin in the past few weeks. With an eye on altcoins, let’s study the charts of the top-5 cryptocurrencies that may trend in the next few days.

BTC/USD

Bitcoin broke above the $41,959.63 resistance on Feb. 8 with a strong up-move, but since then, the momentum has weakened. Although the price has been nudging higher, the leading cryptocurrency is facing profit-booking at intermittent levels.

BTC/USDT daily chart. Source: TradingView

If the price turns down from the current levels and slips below $46,000, the correction could deepen to the strong support at $41,959.63. If the BTC/USD pair rebounds off this support, it will suggest the bulls continue to accumulate on dips, which is a sign that the uptrend is intact.

The bulls will then try to drive the price above the psychological barrier at $50,000 and resume the uptrend with the next target objective at $60,974.43. On the other hand, if the bears sink the price below the 20-day exponential moving average ($41,349), the pair may drop to the 50-day simple moving average ($36,070).

This is an important support to watch out for because the price has not dipped below the 50-day SMA since Oct. 9. Hence, a break below it will indicate a possible change in trend. The next support on the downside is much lower at $28,850.

BTC/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the pair has formed a rising wedge pattern that will complete on a breakdown and close below the support line. If that happens, the pair may drop to $43,720.85 and then to $41,959.63.

Contrary to this assumption, if the price turns up from the current levels or the 20-EMA and rises above the wedge, it will invalidate the bearish setup. A breakout above $50,000 could attract short-covering from the aggressive bears and may result in a quick up-move to $55,000.

BCH/USD

Bitcoin Cash (BCH) broke above the $539 resistance on Feb. 12 and this attracted buying from the bulls. The altcoin picked up momentum and soared above the $631.71 resistance on Feb. 13

BCH/USD daily chart. Source: TradingView

The long wick on today’s candlestick suggests short-term traders may be booking profits after the recent runup. The BCH/USD pair may now correct to $631.71 and if the bulls can flip this level into support, it will indicate buying on every minor dip.

If the bulls can push the price above $730.02, the uptrend could reach $900. Both moving averages are sloping up and the relative strength index (RSI) is in the overbought zone, suggesting an advantage to the bulls.

Contrary to this assumption, if the price dips and sustains below $631.71, the correction could deepen to $539.

BCH/USD 4-hour chart. Source: TradingView

The 4-hour chart shows the bears are defending the $720 resistance and the bulls are buying on dips to $650. If the buyers can propel the price above $730.02, the uptrend could resume.

On the other hand, if the price again turns down from $720, the bears will try to pull the price down to $631.71. If this support cracks, the decline could extend to the 20-EMA and then to the 50-SMA.

EOS/USD

EOS broke out of the long basing formation and started a new uptrend when it soared above the $3.95 overhead resistance on Feb. 9. The altcoin picked up momentum and the bulls pushed the price above the $5.4861 resistance on Feb. 13.

EOS/USD daily chart. Source: TradingView

However, the failure to sustain the price above $5.4861 may have attracted profit-booking from the short-term traders. This has started a correction that could extend to the 38.2% Fibonacci retracement level at $4.5014.

If the price rebounds off this level, the bulls will again try to push and sustain the price above the $5.4861 to $5.6118 overhead resistance. Contrary to this assumption, if the bears sink the price below $4.5014, the EOS/USD pair could drop to $3.95.

Such a deep correction will suggest that the momentum has weakened and the pair could then consolidate in a wide range between $3.95 and $5.6118 for a few days.

EOS/USD 4-hour chart. Source: TradingView

The 4-hour chart shows that the bulls have purchased the dip to the 20-EMA. If the pair sustains the rebound, the bulls will again try to push the price above $5.6118. If they succeed, the uptrend could resume.

The next target objective on the upside is $6 and if that level is also scaled, the uptrend could reach $7.50. On the other hand, a break below the 20-EMA could extend the correction to the 50-SMA.

XMR/USD

Monero (XMR) broke above the $190 resistance on Feb. 12 and resumed the uptrend. The 20-day EMA ($174) has turned up and the RSI has moved into overbought territory, which suggests the bulls are in command.

XMR/USDT daily chart. Source: TradingView

The bears are currently defending the psychological level at $250. The first support on the downside is the 38.2% Fibonacci retracement at 213.6152. If the price rebounds off this level, it will suggest that traders are viewing the dips as a buying opportunity.

A break above $254.45 will open the doors for a rally to $300 where the bears may again mount a stiff resistance.

Contrary to this assumption, if the bears sink the price below $213.6152, the correction may deepen to $190. Such a deep fall may delay the start of the next leg of the uptrend.

XMR/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the bears are defending the $240 to $254.45 resistance zone but the positive sign is that the bulls have not given up much ground. If the price rises from the current level or rebounds off the 20-EMA, it will signal strength.

If the bulls can push the price above the overhead resistance, a rally to $268 and then to $300 is likely. This bullish view will invalidate if the XMR/USD pair dips and closes below the 20-EMA.

XTZ/USD

Tezos (XTZ) broke above the previous all-time high at $4.4936 on Feb. 12 and has made a new high at $5.6471 today. Whenever an asset hits a new high, it indicates that bulls are in control.

XTZ/USDT daily chart. Source: TradingView

Another thing that usually happens when a major resistance is broken is that the price turns down and retests the breakout level. In this case, the price could dip to the breakout level at $4.4936.

If the price rebounds off this level, it will suggest that traders are buying on dips and have flipped the previous resistance to support. The bulls will then attempt to resume the uptrend by pushing the price above $5.6471.

If they succeed, the XTZ/USD pair could rally to $7.1407. This bullish view will invalidate if the pair breaks and sustains below $4.4936.

XTZ/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the bulls could not sustain the price above $5.40, which may have attracted profit-booking from short-term traders. The bulls are currently attempting to defend the 20-EMA.

If the price rebounds off this support, it will signal strength. A break above $5.6471 may resume the up-move. On the other hand, if the price dips below the 20-EMA and the $4.4936 support, the correction could deepen to the 50-SMA.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Price analysis 2/12: BTC, ETH, ADA, XRP, DOT, BNB, LTC, LINK, XLM, BCH

Altcoins are soaring to new highs while Bitcoin price trades in a sideways range near the $47,000 support.

Financial regulators across the world finally seem to be warming up to the idea that cryptocurrencies can trade in tandem with stock markets and also in exchange-traded funds (ETF).  On Feb. 11, Canada’s Ontario Securities Commission approved the proposal of a Bitcoin ETF by Accelerate Financial, which marks the first approval of a Bitcoin (BTC) ETF in North America.

The Australian Securities and Investments Commission has also softened its stance toward a Bitcoin ETF. ASIC commissioner Cathie Armour said a Bitcoin ETF may get the green light if the particular market has proper rules in place.

The approval of Bitcoin ETFs by several countries will put pressure on the regulators in the U.S. to consider future proposals favorably.

Daily cryptocurrency market performance. Source: Coin360

Bitcoin soared above a $900 billion market capitalization today, bringing it within a striking distance of the $1 trillion figure.

The growing popularity of the crypto derivatives market is another added advantage as it shows the asset class has matured. Even in legacy markets, derivatives are one of the key components that are used for the price discovery of an asset.

Let’s analyze the charts of the top-10 cryptocurrencies to determine the trend and spot the critical levels that may signal a trend change.

BTC/USD

During strong uptrends, pullbacks usually last only for one to three days because the bulls buy every minor dip as they expect higher levels in the future. The same was seen in Bitcoin as the price bounced back sharply on Feb. 11.

BTC/USDT daily chart. Source: TradingView

The psychological level at $50,000 may act as a resistance but if the bulls can drive the price above it, the BTC/USD pair could rally to $60,974.43.

However, the failure of the pair to pick up momentum after making a new all-time high on Feb. 11 and today shows hesitation to buy at higher levels. If the bulls do not resume the up-move in the next few days, short-term traders may book profits.

The pair could then drop to $41,959.63 and the 20-day exponential moving average ($39,895). This is a critical zone to keep an eye on because a break below it will signal that the momentum has weakened.

The bears will be back in the game if the pair slides below the 50-day simple moving average ($35,180).

ETH/USD

Ether (ETH) is currently attempting to break out of the $1,680.173 to $1835.554 tight range it had been stuck in for the past few days. A breakout will suggest that the bulls have overpowered the bears.

ETH/USDT daily chart. Source: TradingView

The rising moving averages and the relative strength index (RSI) just below the overbought level suggest that the path of least resistance is to the upside. If the bulls can sustain the price above $1,835.554, the ETH/USD pair could move up to the resistance line of the ascending channel.

A breakout of the channel will indicate a pick up in momentum. There is a psychological resistance at $2,000 but if the bulls can push the price above it, the pair may move up to $2,500.

Contrary to this assumption, if the price slips below $1,680.173, the pair may dip to the 20-day EMA ($1,568) and then to the support line of the channel. This is an important support to watch out for because if it cracks, the pair may signal a trend change.

ADA/USD

Cardano (ADA) is currently witnessing a minor correction in a strong uptrend. The shallow pullback shows that traders are not booking profits in a hurry as they expect the uptrend to resume.

ADA/USDT daily chart. Source: TradingView

The upsloping moving averages and the RSI above 87 suggest the trend remains firmly in favor of the bulls. The first support on the downside is the 38.2% Fibonacci retracement level at $0.7230669.

If the price rebounds off this support, the bulls will again try to resume the uptrend. A breakout and close above $0.9817712 could push the price $1.25 and then to $1.50.

Contrary to this assumption, if the price turns down from the current levels and breaks below the 20-day EMA ($0.593), the ADA/USD pair may signal a possible change in trend.

XRP/USD

XRP rallied to close above the $0.50 overhead resistance on Feb. 11 and the altcoin followed it up with another up-move today. The upsloping 20-day EMA ($0.425) and the RSI in the overbought zone suggest bulls have the upper hand.

XRP/USDT daily chart. Source: TradingView

The bulls will now try to push the price to $0.65 and then to $0.78068. The bears may mount a stiff resistance at $0.78068 but if the bulls can thrust the price above the overhead resistance, the XRP/USD pair may pick up momentum and rally to $1.

This bullish view will invalidate if the price turns down from the current levels or the overhead resistance and drops below $0.50. Such a move will suggest that traders are dumping their positions on rallies.

DOT/USD

Polkadot (DOT) is in a strong uptrend. The price has currently reached the resistance line of the ascending channel where the bears may mount a stiff resistance. Previously, when the price had reached the resistance line of the channel, the altcoin had entered a minor correction and dropped to the support line of the channel.

DOT/USDT daily chart. Source: TradingView

However, if the bulls can push and sustain the price above the channel, the momentum may pick up. The first target on the upside is $33 and then $40. The rising moving averages and the RSI in the overbought zone suggest bulls have the upper hand.

This bullish view will invalidate if the DOT/USD pair turns down and breaks below the support line of the channel. Such a move will indicate the start of a deeper correction.

BNB/USD

Binance Coin (BNB) witnessed profit-booking on Feb. 10, but the correction was short-lived as the bears could not even pull the price down to the 38.2% Fibonacci retracement level at $105.7886. A shallow correction after a sharp rally is a positive sign as it suggests that traders are not hurrying to close their position.

BNB/USDT daily chart. Source: TradingView

The bulls are currently attempting to resume the uptrend by pushing the price above the $148.40 overhead resistance. If they succeed, the BNB/USD pair could start its journey towards $200.

However, the RSI is already above 88 levels, which suggests the rally is overextended. Any rise above $148.40 is likely to push the RSI deeper into the overbought zone, increasing the risk of a melt-up that may be followed by a sharp reversal.

On the contrary, if the price turns down from $148.40, the pair may remain range-bound or enter a meaningful correction.

LTC/USD

Litecoin (LTC) formed a Doji candlestick pattern on Feb. 10 and 11, which showed indecision among the bulls and the bears. If the bulls can push and sustain the price above $185.5821, a rally to $200 is possible.

LTC/USDT daily chart. Source: TradingView

The gradually upsloping moving averages and the RSI near the overbought zone suggest the path of least resistance is to the upside.

Contrary to this assumption, if the price again fails to sustain above $185.5821, it will suggest that demand dries up at higher levels. The LTC/USD pair could then drop to the 20-day EMA ($158).

If the price rebounds off this support, it will indicate that bulls are buying the dips. They will then again try to propel the price above the overhead resistance and resume the uptrend.

On the other hand, if the price turns down and breaks below the moving averages, a drop to $120 is possible.

LINK/USD

After sustaining above $25.7824 for the past three days, Chainlink (LINK) has resumed its uptrend today. The price has currently reached the resistance line of the rising wedge pattern, which may attract selling from the bears.

LINK/USDT daily chart. Source: TradingView

But if the bulls can push the price above the rising wedge pattern, the LINK/USD pair could pick up momentum and rally to $33 and then $36.

On the contrary, if the price turns down from the current levels, the pair may drop to the $25.7824 support. A break below the support line of the wedge will complete the bearish setup and open the doors for a fall to $20.1111.

XLM/USD

Stellar Lumens (XLM) is in an uptrend. The rising moving averages and the RSI in the overbought zone suggest the bulls have the upper hand. However, the altcoin could face resistance at the $0.50 psychological level.

XLM/USDT daily chart. Source: TradingView

If the price turns down from the overhead resistance, the XLM/USD pair could drop to $0.409 and then to the 20-day EMA ($0.36). A strong bounce off this support will suggest accumulation at lower levels.

The bulls will then once again try to resume the uptrend by pushing the price above $0.50. If they succeed, the uptrend could pick up momentum and reach $0.58. Conversely, a break below $0.35 could suggest a deeper correction to the 50-day SMA ($0.27).

BCH/USD

The bulls are attempting to sustain Bitcoin Cash (BCH) above the $539 overhead resistance. If they succeed, the altcoin could rally to $631.71 and if this level is also scaled, the up-move may reach $745.

BCH/USD daily chart. Source: TradingView

The upsloping moving averages and the RSI above 65 suggest the path of least resistance is to the upside.

Contrary to this assumption, if the price turns down from the current levels, it will suggest the bears are aggressively defending $539. A break below the moving averages could keep the price stuck inside the $539 to $370 range for a few more days.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Qtum, Status (SNT) and Iota (MIOTA) rally after breaking multi-year downtrend

Qtum, Status and Iota recently broke free of their long term downtrends after each network added new features and announced new partnerships.

Shortly after Tesla announced that it will allow customers to buy products with Bitcoin (BTC), a curious job posting from Amazon suggests that the company could also be working on a platform that will allow customers in Mexico to use digital currencies for making payments.

If Amazon jumps on the crypto bandwagon, it will immensely strengthen the possibility of cryptocurrencies going mainstream across the world.

Crypto market data daily view. Source: Coin360

Today Bitcoin price is showing a new spark of optimism after the Bank of New York Mellon announced that it would hold, transfer and issue Bitcoin on part of its clients.  The bank is also said to be developing a platform that will process and custody digital currencies alongside traditional assets like treasuries and stocks.

Bitcoin’s future of becoming a widely accepted medium of exchange and investment vehicle appears to be becoming etched in stone. Meanwhile, several altcoins have been rising, buoyed by strong use cases and protocol upgrades.

Let’s analyze a few of the top performing tokens of this week.

QTUM/USD

Airdrops are an easy way to make some extra money, hence they remain extremely popular with investors. Qtum (QTUM) holders will receive an airdrop of Qi, the native cryptocurrency of the decentralized exchange QiSwap which is built on the Qtum blockchain. With crypto volumes rising and the demand for DEX’s picking up, the proposed airdrop scheduled from Feb. 14 may have attracted fresh buying from several investors.

The protocol has identified decentralized finance as a focus area and is taking steps to attract new DeFi projects. Qtum is planning a hard fork that will reduce its block spacing from 128 to 32 seconds in order to support the faster transaction speeds needed in DeFi.

Qtum is also developing Neutron, an agnostic interface that allows virtual machines to run on Qtum and other blockchains. The aim is to build a low-cost entry platform that is also easy to use. With an eye on DeFi, the Qtum protocol seems to be taking the necessary steps to attract projects and investors alike.

QTUM surged from an intraday low at $3.18 on Feb. 1 to an intraday high at $8.82 today, a 177% rally within two weeks. The breakout of $5.90 has completed a long-term bottoming formation, indicating the start of a new uptrend.

A long base readies a strong launchpad for the start of the next trending move. The longer the base, the stronger is the breakout from it.

QTUM/USDT daily chart. Source: TradingView

However, after the breakout from a long basing formation, the price retests the breakout level. The long wick on today’s candlestick suggests profit-booking at higher levels and the deeply overbought level on the relative strength index (RSI) also points to a possible correction.

The price may now dip back to $5.90. If the bulls can flip this previous resistance to support and the price rebounds off it sharply, it will increase the prospects of the resumption of the uptrend. The first target on the upside is $10.30 and then $14.7.

Contrary to this assumption, if the price drops and sustains below $5.90, it will suggest the current rally was a bull trap. The QTUM/USD pair could then dip to the 20-day moving average ($4.46).

SNT/USD

The recently proposed changes in the WhatsApp privacy policy triggered outrage among users and resulted in millions of users switching to other messaging platforms. While a few users shifted to other centralized apps, others who wanted to keep their privacy in their hands opted for Status App.

This app has witnessed a sharp increase in the number of downloads on Android, which crossed above 600,000 recently. The latest update in Status allows users to bookmark their favorite DApps, enabling one-tap access to some of the popular DeFi projects.

Along with its features on mobile, Status Network (SNT) also rolled out Beta versions of its Desktop app that allow users to stay connected even from their laptops.

The Nimbus team also rolled out a new release that aims to increase sync speed by 50% while reducing CPU utilization by half and providing protection against accidental slashings. Nimbus will eventually be integrated into the Status-desktop and Status mobile app in order to improve the user experience.

SNT rose from $0.0465 on Feb. 1 to an intraday high at $0.1260 today, a 170% rally within two weeks. However, the long wick on the day’s candlestick suggests traders are booking profits at higher levels.

SNT/USD daily chart. Source: TradingView

The SNT/USD pair may now drop to the 38.2% Fibonacci retracement level at $0.0935 and then to the 50% retracement level at $0.0835. If the price rebounds off either level, it will suggest that traders are buying on dips. They will then try to resume the uptrend.

If the bulls can propel the price above $0.1260, the uptrend could reach $0.1786 and then $0.20.

This bullish view will invalidate if the bears pull the price below $0.0835. Such a move will suggest that supply exceeds demand and that may result in a drop to the 20-day EMA ($0.066). A deep fall is likely to be followed by a range-bound action before the next trending move starts.

MIOTA/USD

Iota recently launched its oracles to bring off-chain data to smart contracts on its network. An oracle is only as valuable as the quality of data it streams and in order to reduce the possibility of data manipulation, Iota will use First Party Oracles, which only reflect the data submitted by the data issuer. This will reduce the possibility of data tampering.

Modern technology relies on various data sources for taking automated decisions, hence the data should be trustworthy. To ensure this, Iota and Dell Technologies partnered on a demo project called Alvarium. The platform ensures that the data’s journey from initiation to its final destination is given a trust rating to increase the confidence in the data in a measurable way. This can have real-world use cases in industries that need a high degree of compliance and security.

Expanding its offering, Iota partnered with the South Korean Observer foundation and Tanglehub to apply for smart city projects in Asia and Europe in 2021.

Along with these new offerings, the protocol is also getting ready to launch the second part of its Chrysalis upgrade, which according to Iota is the most extensive in its history. With the launch of the new update, the community can build scalable Automated Market Makers, fee-free decentralized finance platforms, and smart contracts to leverage the protocol.

Chrysalis will also introduce steps needed for the removal of the coordinator and bring in a greater amount of decentralization.

Iota had been stuck in a bottoming formation for over two years. It rallied from $0.4367 on Feb. 5 to $1.29 today, a 197% gain within seven days. The altcoin picked up momentum after it broke above the resistance at $0.55.

MIOTA/USD daily chart. Source: TradingView

The sharp rally has pushed the RSI above 91, which suggests the rally is overextended in the short term and may witness a minor correction or consolidation. If the MIOTA/USD pair turns up from the 38.2% Fibonacci retracement level at $0.94, it will suggest strength.

The bulls will then try to resume the uptrend. If the buyers push the price above $1.29, the pair could extend its rally to $2.00 and then to $2.60. As the price has spent a long time in a basing pattern, the rally is likely to surprise to the upside.

Contrary to this assumption, if the price turns down from the current level and breaks below the 50% Fibonacci retracement level at $0.83, the pair may drop to the 61.8% retracement at $0.72. Such a deep fall will suggest the momentum has weakened.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Price analysis 2/10: BTC, ETH, ADA, XRP, DOT, BNB, LTC, LINK, DOGE, BCH

Bitcoin and select altcoins are witnessing profit-booking at higher levels, a signal that a short phase of consolidation could occur over the next few days.

Bitcoin’s (BTC) market capitalization topped $889 billion on Feb. 9, pushing BTC above the value of Tesla and the Russian ruble, according to data from AssetDash.

The current rally is longer limited to Bitcoin as several altcoins have been surging in the past few days. This shows the buying interest is broad-based and today the total crypto market cap surpassed $1.4 trillion.

While the positive news flow and price rise in most cryptocurrencies may give the impression that the bull run will never stop, traders should be careful because every bull phase witnesses periodic corrections.

Daily cryptocurrency market performance. Source: Coin360

Another important thing to note is that every bull phase usually has a different set of leaders. The altcoins that have performed exceedingly well in the current bull run may not lead the next one. Therefore, traders should study their portfolio and close the positions that may not be fundamentally strong but could have risen only due to positive sentiment.

It is difficult to time the top because it is only in hindsight that one can say with conviction that a top has been made. Therefore, traders may consider keeping appropriate stop-losses on their positions to protect their paper profits.

Let’s study the charts of the top-10 cryptocurrencies to determine the strength in the trend and the critical levels to watch out for.

BTC/USD

After the sharp rally on Feb. 8, Bitcoin formed a Doji candlestick pattern on Feb. 9, which suggests the bulls and the bears were undecided about the next move. The indecision has resolved to the downside today, indicating profit-booking by traders.

BTC/USDT daily chart. Source: TradingView

The BTC/USD pair may now drop to the breakout level at $41,959.63. If the price rebounds off this support, it will suggest that the sentiment remains bullish and traders are not waiting for a deeper correction to buy.

If the bulls can push the price above $48,152.84, the uptrend may resume, with the next target objective at $60,974.43.

Contrary to this assumption, if the pair breaks and sustains below $41,959.63, it will suggest that traders are booking profits aggressively.

A break below the moving averages will be the first sign that supply exceeds demand. The bears will gain an upper hand if the pair drops below $28,850.

ETH/USD

Ether (ETH) made a new all-time high today, but the long wick on the candlestick suggests that traders are booking profits at higher levels. The failure of the biggest altcoin to pick up momentum after breaking above $1,757.338 indicates that demand dries up at higher levels.

ETH/USDT daily chart. Source: TradingView

The ETH/USD pair may witness a minor correction or consolidation that could pull the price down to the 20-day exponential moving average ($1,514). This is an important support to watch out for because the bulls have not allowed the price to sustain below it for the past several weeks.

If the price rebounds off the 20-day EMA, it will suggest that traders continue to view the dips to this level as a buying opportunity. The bulls will then try to resume the uptrend and push the price to $2,000.

This positive view will invalidate if the bears sink and sustain the price below the 20-day EMA for more than two days. Such a move will signal that traders are booking profits aggressively and that could pull the price down to the 50-day simple moving average ($1,194).

ADA/USD

Cardano (ADA) is witnessing a vertical rally that pushed the price to $0.8871889 today. This strong up-move of the past few days has pushed the relative strength index (RSI) deep into overbought territory.

ADA/USDT daily chart. Source: TradingView

Vertical rallies are rarely sustainable and if the uptrend stalls, several momentum traders may rush to the exit, resulting in a sharp drop.

The first support on the downside is the 38.2% Fibonacci retracement level at $0.6646150 and then the 50% retracement level at $0.5958618.

If the price rebounds off either support, it will suggest that bulls continue to look for buying opportunities on dips. They will then try to resume the uptrend and drive the price to the psychological level at $1.

On the contrary, if the bears sink the price below $0.5958618, the correction could deepen to the 20-day EMA ($0.51).

XRP/USD

XRP has been a laggard during the current crypto bull run but the bulls are trying to make amends. The buyers are currently trying to push and sustain the price above $0.50. If they manage to do that, a new uptrend is likely.

XRP/USDT daily chart. Source: TradingView

The rising 20-day EMA ($0.39) and the RSI just below the overbought level suggests that bulls have the upper hand. The first target objective on the upside is $0.65 and if this level is scaled, the uptrend may reach $0.75.

Contrary to this assumption, if the bulls fail to sustain the price above $0.50, it will indicate that traders continue to lighten up their positions on rallies. Such a move could keep the price range-bound between $0.3855 and $0.50 for a few days.

DOT/USD

Polkadot (DOT) remains in an uptrend but the momentum is weakening. The altcoin formed a Doji candlestick pattern on Feb. 9 and has again made one today, which suggests indecision among the bulls and the bears.

DOT/USDT daily chart. Source: TradingView

If the uncertainty resolves to the downside and the price sustains below $22, the DOT/USD pair could drop to the $19.40 support. This is an important level to keep an eye on because a break below it could pull the price down to $14.7259.

On the other hand, if the price turns up from the current level or $19.40, it will suggest traders continue to buy the dips. If the bulls can resume the uptrend, the pair could rally to $30.

BNB/USD

Binance Coin (BNB) is in a strong uptrend. The vertical rally of the past few days has pushed the RSI above 91, which suggests the markets are overheated in the short-term. Such gravity-defying rallies are rarely sustainable and a correction could be around the corner.

BNB/USDT daily chart. Source: TradingView

The long wick on today’s candlestick suggests traders are booking profits after the recent up-move. The first support on the downside is 38.2% Fibonacci retracement level at $105.7886 and then the 50% retracement at $92.6259.

If the price rebounds off either support, it will suggest that traders continue to buy on dips. The buyers will then try to resume the uptrend. On the other hand, if the price breaks below $92.6259, the BNB/USD pair could drop to the 61.8% retracement level at $79.4632.

LTC/USD

Litecoin (LTC) broke above the $185.5821 overhead resistance today but the bulls are finding it difficult to sustain the breakout. This suggests the bears are selling at higher levels and are attempting to trap the aggressive bulls.

LTC/USDT daily chart. Source: TradingView

If the LTC/USD pair fails to sustain above $185.5821, the short-term traders may book profits and that could sink the price to the moving averages.

If the price bounces off the moving averages, the bulls will again try to propel and sustain the price above $185.5821. If they succeed, the pair may rally to $200 and then to $250.

Conversely, if the bears sink the price below the moving averages, a drop to $120 is possible. A rebound off this level could keep the pair range-bound for a few days. A break below this support could tilt the advantage in favor of the bears.

LINK/USD

Chainlink (LINK) rose to a new all-time high on Feb. 9 and the up-move extended today, but the bulls are not able to sustain the momentum. This could have resulted in a few short-term traders booking profits.

LINK/USDT daily chart. Source: TradingView

However, the long tail on today’s candlestick shows the bulls have not given up and are buying on dips.

If the price rises from the current levels and breaks above $28.6412, the LINK/USD pair may rally to $30 and then $33.

On the contrary, if the bears sink the price below the 20-day EMA ($23.85), the pair could drop to $20.1111.

DOGE/USD

Dogecoin’s (DOGE) volatility has been reducing and that has resulted in successive inside day candlestick patterns in the past three days. This suggests the bulls and the bears are not taking large directional bets.

DOGE/USDT daily chart. Source: TradingView

If the uncertainty resolves to the upside and the bulls push the price above the $0.0875 overhead resistance, the uptrend could resume, with the next target objective at $0.102412 and then $0.13.

Contrary to this assumption, if the price slips below $0.0625, the DOGE/USD pair could start a deeper correction that may reach the 20-day EMA ($0.44).

BCH/USD

Bitcoin Cash (BCH) turned down from the overhead resistance today and has formed a bearish engulfing candlestick pattern. The bears will now try to sink the altcoin to the moving averages.

BCH/USD daily chart. Source: TradingView

A strong rebound off the moving averages will suggest the bulls are buying on dips. They will then try to once again push and sustain the price above $539. If they succeed, a rally to $631.71 is possible.

On the contrary, if the bears sink the price below the moving averages, the BCH/USD pair may drop to $370. A strong bounce off this critical support may keep the pair range-bound between $539 and $370 for a few days.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Helium (HNT), Avalanche (AVAX) and Pickle rally on partnership announcements

Partnership announcements, improving fundamentals and growing interest in DeFi are driving the price of Helium, Avalanche and Pickle higher.

Bitcoin (BTC) price continues to defy gravity and its strong bullish breakouts frequently result in short sellers needing to cover their positions in a hurry. A repeat of this happened on Feb. 9 when Bitcoin soared on the news of Tesla’s $1.5 billion Bitcoin purchase. Bybt data shows that about $1.34 billion worth of Bitcoin futures positions were liquidated due to the sharp rally.

Crypto market data daily view. Source: Coin360

Another notable event was the launch of CME Ether (ETH) futures on Feb. 8. Several traders feared that the launch would send Ether price tumbling, similar to the weakness seen in Bitcoin shortly after the launch of its futures in 2017. However, this has not happened and Ether remains strong.

Along with the major cryptocurrencies, several smaller tokens with strong use cases have also performed well. Let’s study three tokens that have been performing well in the current bullish environment.

HNT/USD

The number of daily use gadgets connected to the internet has surged over the years and as more are added Helium (HNT) wants to allow users and firms to build, connect and send data across a network of nodes.

The number of new Helium nodes saw a sharp jump from 3,271 active nodes at the end of April 2020 to 18,001 active hotspots in active use today. Another positive sign is the original Helium miner is sold out but the company recently formed a partnership with three new third-party manufacturers for its mining hardware.

The number of hotspots in use could receive a further boost as Helium plans to enter China in March and has tied up with HBTC to cater to the massive demand in Southeast Asia.

On the use case front, the network is attempting to solve car parking problems, autonomously control the operating systems of cooling towers, monitor agricultural commodities in real-time and support COVID-19 medical innovations. The growth of the network and its use cases project a positive picture for the protocol.

HNT has risen from an intraday low at $2.160 on Feb. 1 to an intraday high at $4.009 today, an 85% rally in a short time. The trend favors the bulls but the bears are not yet willing to accept defeat.

HNT/USDT daily chart. Source: TradingView

The long wick on the Feb. 6 to Feb. 8 candlesticks show the bears aggressively sold near the $4 resistance. However, the sellers could not capitalize on this strength and start a deeper correction.

This attracted dip-buying from the bulls and currently traders attempting to propel the price above $4 and resume the uptrend. If they succeed, the HNT/USD pair could rally to $5.15.

On the other hand, if the price again turns down from the current levels, the pair may consolidate in a tight range for a few days. The relative strength index (RSI) above 80 suggests the markets are overheated in the short-term and may be ripe to enter a correction or consolidation phase.

The first sign of weakness will be a breakdown and close below the 20-day exponential moving average ($2.712).

AVAX/USD

Traders use several strategies to make money in the markets and one among them, algorithmic trading, is quickly gaining popularity as it removes emotions from trading. Velox plans to bring algorithmic trading for decentralized exchanges to Avalanche (AVAX) in the first quarter of this year, which may attract a new breed of traders.

Along with the various trading products, risk management also plays a major role in a trader’s success. To meet this requirement, Avalanche is in the process of integrating with DSLA protocol and UNION to offer risk control services and insurance to the DeFi users.

True decentralization is achieved when most operations are free from centralized services. Many times, developers have to depend on centralized cloud services for their applications’ database and computing. To address this problem, Avalanche partnered with Aleph.im to provide decentralized cloud services to the teams building new products.

Stablecoins play an important part in the crypto universe and e-Money has announced plans to launch several European-currency stablecoins such as digital euro, Swiss Francs, Norwegian Krone, Swedish Krona, and Danish Krone to Avalanche.

OKCoin also became the first U.S. exchange to add support to AVAX and the trading went live from Feb. 3. OKCoin also plans to airdrop over $1 million worth of AVAX tokens in the next few days.

AVAX skyrocketed from $10.80 on Jan. 28 to an intraday high at $33.8167 on Feb. 8, a 213% rally in about two weeks. This sharp up-move pushed the RSI above 90, which suggests the markets were extremely overbought in the short term.

AVAX/USD daily chart. Source: TradingView

This resulted in profit-booking on Feb. 8, as seen from the long wick on the day’s candlestick. The selling has continued today and the bears will now try to pull the price down to the 38.2% Fibonacci retracement level at $25.0129.

If the price rebounds off this support, it will suggest that traders are eager to buy on a shallow pullback. The bulls will then try to resume the uptrend once again. If they can propel the price above $33.8167, the AVAX/USD pair may move up to $47.

On the other hand, if the bears sink the price below $25.0129, the correction could deepen to the 20-day EMA ($16.90). Such a move will suggest the momentum has weakened. The pair could then remain range-bound for a few days before starting the next trending move.

PICKLE/USD

Buybacks have been one of the favored mechanisms used by companies in legacy finance to boost the value of their stocks. The treasury of a company also acts as a source of funds that ensures the firm's liquidity and reduces operational and financial risk.

Pickle Finance (PICKLE) has achieved both these functions with the launch of their smart treasury, which not only acts as a buyback mechanism that consumes PICKLE that can be used for community initiatives.

Pickle launched two new jars, one with BAC/DAI and another with MIC/USDT in January, which offered astronomical yields. At a time when traditional banks pay negligible returns on deposits, it’s no surprise that Pickle’s high yields are a huge attraction.

The protocol announced that DILL, developed in collaboration with Yearn Finance, has passed multiple audits and is ready to be implemented. The investors who lock their PICKLE tokens for four years will receive DILL, the non-tradable token. The DILL owners will receive withdrawal, performance, and protocol fees in addition to rewards on their deposits.

PICKLE rose from an intraday low at $13.69 on Feb. 1 to an intraday high at $35.89, a 162% gain in a short time. The token witnessed large range moves between Feb. 6 and 8, which pushed the RSI above 84.

PICKLE/USDT daily chart. Source: TradingView

Usually, after a period of large daily ranges, the volatility drops, and the price trades in a tight range. The PICKLE/USD pair has formed an inside-day candlestick pattern today, which suggests indecision among the bulls and the bears about the next directional move.

If the indecision resolves to the upside and the bulls push the price above $35.89, the pair may continue its uptrend and reach $44 and then $50 where the bears are likely to mount a stiff resistance.

Contrary to this assumption, if the uncertainty resolves to the downside and the bears sink the price below $27.72, the pair may drop to the 20-day EMA ($20.51). If that happens, the pair may consolidate for a few days before making the next directional move.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Price analysis 2/8: BTC, ETH, ADA, XRP, DOT, BNB, LTC, DOGE, LINK, BCH

Strong institutional demand has propelled Bitcoin and many altcoins to new all-time highs.

Bitcoin (BTC) broke out to a new all-time high today, buoyed by the news that Tesla has purchased $1.5 billion worth of Bitcoin, according to a filing with the Securities and Exchange Commission.

In addition to the Bitcoin purchase, Tesla also plans to offer its customers the option of buying products with BTC. Instead of converting BTC payments to fiat upon receipt, Tesla may decide to add it to its reserves.

Daily cryptocurrency market performance. Source: Coin360

In addition to Tesla’s purchase, legendary investor Bill Miller also plans to increase his exposure to Bitcoin by investing over $300 million in Grayscale Bitcoin Trust. These purchases by large investors even after Bitcoin’s sharp rally show they expect the up-move to continue further.

Mexico’s third-richest person Ricardo Salinas Pliego has added the hashtag Bitcoin to his Twitter bio. This act by Salinas brings Bitcoin to the notice of his 840,000 followers, some of whom may want to emulate the billionaire by buying Bitcoin. Salinas had revealed back in November that 10% of his “liquid portfolio” was invested in Bitcoin.

These developments have given a positive boost to the fundamentals in the crypto sector. With a huge tailwind in place, let’s analyze the charts of the top-10 cryptocurrencies to arrive at the possible target levels on the upside.

BTC/USD

Bitcoin had been stuck between $38,000 and $40,000 for the past two days. The long wick on Feb. 6 candlestick showed traders booked profits at higher levels and the long tail on Feb. 7 candlestick signaled buying on dips.

BTC/USDT daily chart. Source: TradingView

Today, the bulls have propelled the price above the $41,959.63 overhead resistance. This opens the possibility of a rally to the immediate target objective at $50,000 where the bears may again mount a stiff resistance.

But if the bulls can drive the price above $50,000, the BTC/USD pair may rally to $60,974.43.

Contrary to this assumption, if the bulls fail to sustain the breakout, it will indicate that traders are booking profits at higher levels. The bears will then try to pull the price back below $38,000.

If they succeed, a retest of the moving averages is likely. A break below the 20-day exponential moving average ($36,196) will be the first sign of weakness and a drop below the 50-day simple moving average ($33,250) will increase the likelihood of a deeper correction.

ETH/USD

Ether (ETH) turned down from $1,757.338 on Feb. 5 but the bulls aggressively purchased the dip to the breakout level at $1,474.096 on Feb. 7 as seen from the long tail on the day’s candlestick.

ETH/USDT daily chart. Source: TradingView

The upsloping moving averages and the RSI in the positive territory suggest that the path of least resistance is to the upside.

If the bulls can sustain the price above $1,757.338, the ETH/USD pair could resume its uptrend. The next target on the upside is $1,870 and if this level is crossed, the up-move may reach the psychologically critical level at $2,000.

On the contrary, if the price turns down from the current level, the pair could consolidate between $1,757.338 and $1,473.096 for a few more days. A break below $1,473.096 could pull the price down to the 50-day SMA ($1,148).

ADA/USD

Cardano (ADA) picked up momentum after breaking above the ascending channel on Feb. 5. The bulls easily pushed the price above the immediate resistance at $0.60 on Feb. 6, which opens the possibility of a rally to $0.80.

ADA/USDT daily chart. Source: TradingView

Although the rising moving averages suggest advantage to the bulls, the RSI in the overbought territory warns of a possible correction or consolidation in the near term.

A consolidation will indicate that traders are not booking profits in a hurry and that will enhance the prospects of the resumption of the uptrend.

On the other hand, a correction could reach the 20-day EMA ($0.454). A strong rebound off it will suggest that the uptrend remains intact, while a break below it will suggest the momentum has weakened.

XRP/USD

XRP has been sustaining above $0.3850 for the past few days, but the bulls are struggling to push the price above $0.50. This suggests that demand dries up at higher levels.

XRP/USDT daily chart. Source: TradingView

The bears tried to sink the price below the $0.3855 support on Feb. 7 but failed. This shows the bulls are buying the dips. When bears sell on rallies and bulls buy on dips, the price gets stuck in a range.

A break and close above $0.50 could start an up-move that could reach $0.65, while a break below the 20-day EMA ($0.374) could sink the XRP/USD pair to the 50-day SMA ($0.312).

DOT/USD

The failure of the bears to sink and sustain the price below $19.40 has attracted strong buying from the bulls. This has propelled Polkadot (DOT) to a new all-time high today.

DOT/USDT daily chart. Source: TradingView

The immediate target on the upside is $24.08 and if this level is crossed, the uptrend may extend to $30. Both moving averages are sloping up and the RSI is near the overbought territory, indicating that the bulls are in control.

This positive view will invalidate if the DOT/USD pair reverses direction and breaks below the 20-day EMA ($17.91). Such a move could pull the price down to the next support at $14.7259.

BNB/USD

Binance Coin (BNB) soared above the resistance line of the broadening wedge pattern on Feb. 5, which invalidated the bearish setup. The bears are trying to stall the current uptrend at $75, but the positive sign is that the bulls have not given up much ground.

BNB/USDT daily chart. Source: TradingView

After a shallow correction on Feb. 7, the bulls are currently attempting to resume the uptrend. A breakout and close above $75.5 could propel the BNB/USD pair to $95 and then to $100.

On the contrary, if the price again turns down from $75.5, the bears will try to sink the pair back into the wedge. If they succeed, it will suggest profit booking at higher levels.

LTC/USD

Litecoin (LTC) had been consolidating between the 20-day EMA ($144.98) and $160 for the past few days. The bulls are currently attempting to resolve this tight trading range to the upside. If they manage a close above $160, the altcoin could rise to $185.5821.

LTC/USDT daily chart. Source: TradingView

If the bulls can propel the price above $185.5821, the LTC/USD pair could resume the uptrend and rally to $200. Contrary to this assumption, if the price turns down from the overhead resistance, the pair could again dip to the 20-day EMA.

A breakdown and close below the moving averages will be the first sign of weakness. Such a move could pull the price down to $120.

DOGE/USD

Dogecoin’s pump on Jan. 28 and 29 met with strong selling at $0.0875. Although the altcoin dropped on Jan. 30, the bears could not capitalize on this weakness. Strong buying at lower levels again resumed the up-move on Feb. 4 when the price broke and closed above the psychological barrier at $0.050.

DOGE/USDT daily chart. Source: TradingView

The DOGE/USD pair turned down from the $0.0875 overhead resistance on Feb. 7, but the long tail on today’s candlestick suggests that bulls are accumulating on dips. If buyers can drive the price above $0.0875, the momentum could pick up.

The next target to watch on the upside is $0.102412 and then $0.13. Contrary to this assumption, if the price turns down from $0.875, the pair may consolidate in a range for a few days before starting the next trending move.

LINK/USD

The long tail on the Feb. 7 candlestick shows the bulls purchased the dip to the 20-day EMA ($23.15). If buyers can now drive Chainlink (LINK) above the $25.7824 to $27 overhead resistance zone, the uptrend could resume.

LINK/USDT daily chart. Source: TradingView

The first target on the upside is $30 and if the bulls can thrust the price above it, the LINK/USD pair could rally to $33. The upsloping moving averages and the RSI in the positive territory suggest advantage to the bulls.

Contrary to this assumption, if the price turns down from the overhead resistance, the bears will once again try to sink the price below the 20-day EMA. If they succeed, the pair could slide to $20.1111.

BCH/USD

Bitcoin Cash (BCH) broke above the $465.02 resistance on Feb. 6 but the bulls could not sustain the breakout. This attracted profit-booking and the altcoin slipped below the 20-day EMA ($439) on Feb. 7.

BCH/USD daily chart. Source: TradingView

However, the bears could not capitalize on the weakness on Feb. 7 and sink the price below the 50-day SMA ($422). The bulls have currently again pushed the price above $465.02. This increases the likelihood of a rally to $515.

Contrary to this assumption, if the BCH/USD pair turns down from the current levels and breaks below the 50-day SMA, it will signal weakness.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Top 5 cryptocurrencies to watch this week: BTC, DOT, LINK, XLM, THETA

Bitcoin is facing rejection above $40,000, but if the bulls do not give up much ground, several altcoins could resume their uptrend.

Bitcoin (BTC) has attracted several institutional investors in the past few months, but with the market capitalization sustaining above $700 billion, many more institutions are likely to contemplate buying Bitcoin. Similarly, Ether (ETH) with a market cap of about $180 billion also cannot be ignored by the investors. 

The institutional adoption of the top two cryptocurrencies is likely to attract numerous venture capitalists and early investors into smaller projects that have gained a decent size but have not yet reached their full potential. Although the risk is high in such investments, the returns could be equally attractive.

Crypto market data daily view. Source: Coin360

For such investors, there are multiple projects to choose from because over 50 digital assets command a market cap of over $1 billion, giving them unicorn status, a term used in legacy markets for companies with a market cap of over $1 billion.

If large players jump into these unicorns, they are likely to rally strongly, which will benefit the early retail investors who have a head start over the institutions. While these gains may take a long time, traders can benefit in the short term from the sharp up-moves in several altcoins.

Let’s study the charts of the top-5 cryptocurrencies that may resume their uptrend in the next few days.

BTC/USD

Bitcoin broke above the $38,000 overhead resistance on Feb. 5 and followed it up with another up-move on Feb. 6, but the bulls could not sustain the higher levels as seen from the long wick on the day’s candlestick.

BTC/USDT daily chart. Source: TradingView

The failure of the bulls to sustain the price above $40,000 has attracted profit-booking today and the bears are attempting to pull and sustain the price below $38,000. If they succeed, the BTC/USD pair could drop to the 20-day exponential moving average ($35,386).

If the pair rebounds off the 20-day EMA, the bulls will once again try to resume the uptrend. A breakout of the $40,000 to $41,959.63 overhead resistance zone could signal the start of the next leg of the uptrend to $50,000.

On the contrary, if the bears sink the price below the 20-day EMA, the pair may dip to the 50-day simple moving average ($32,840). If this support also cracks, the pair may drop to the $28,850 support.

BTC/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the bulls had pushed the price above the $38,000 to $40,000 overhead resistance zone, but the pair turned down from $40,952.16. This shows the bears are active at higher levels.

The pair has dipped below the 20-EMA and the relative strength index (RSI) is just above the midpoint, which suggests the momentum may be weakening. The pair could now drop to the 50-SMA.

If the pair rebounds off the 50-SMA, the bulls will make one more attempt to resume the uptrend, but if the 50-SMA cracks, the correction could deepen to $32,000.

DOT/USD

Polkadot (DOT) is in a strong uptrend. The bulls pushed the price above the $19.40 resistance on Feb. 03 but they have not been able to build upon the breakout. This suggests the bears are attempting to stall the uptrend.

DOT/USDT daily chart. Source: TradingView

However, the positive sign is that the bulls have not allowed the price to sustain below $19.40. This suggests traders are not booking profits aggressively and are buying on every minor dip.

If the bulls can now propel the price above $21.7321, the next leg of the uptrend could begin. The target objective on the upside is $24.08 and then $30. The rising moving averages and the RSI above 61 suggest the bulls are in control.

Contrary to this assumption, if the bears sink and sustain the price below the 20-day EMA ($17.43), it will suggest that the bullish momentum has weakened. The DOT/USD pair could then spend some more time oscillating between $19.40 and $14.7259.

DOT/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the formation of a symmetrical triangle, which generally acts as a continuation pattern. The bears attempted to sink the price below the triangle but the sharp rebound off the 50-SMA shows aggressive buying at lower levels.

If the bulls can propel the price above the triangle, it will shift the advantage in favor of the bulls. The pattern target of the break above the triangle is $24.1621. On the other hand, if the bears sustain the price below the triangle, the pair could drop to $15.8379.

LINK/USD

Chainlink (LINK) broke and closed above the $25.7824 overhead resistance on Feb. 5 but the bulls could not sustain the momentum the next day. This shows the bears are aggressively defending the $25.7824 to $27 resistance zone.

LINK/USDT daily chart. Source: TradingView

However, the long tail on today’s candlestick shows the bulls are buying the dip to the 20-day EMA ($22.83). The upsloping moving averages and the RSI in the positive zone suggest the path of least resistance is to the upside.

If the bulls can drive the price above the overhead resistance zone, the next leg of the uptrend could begin. The next level to watch on the upside is $30 and if that is also crossed, the up-move may reach $33.

On the contrary, if the bears sink the price below the 20-day EMA, the LINK/USD pair may extend its range-bound action between $20.1111 and $25.7824 for a few more days.

LINK/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the formation of an ascending triangle pattern. If the pair rebounds off the current level, the bulls will make one more attempt to push the price above the overhead resistance zone. If they succeed, the pair could rally to the pattern target of $31.4537.

Conversely, if the bears sustain the price below the support line, the pair could drop to $22.61 and then to $21.65. The marginally downsloping 20-EMA and the RSI in the negative territory suggest a minor advantage to the bears.

XLM/USD

The tight range trading between $0.325 and $0.35 resolved to the upside on Feb. 6, which shows the bulls have overpowered the bears. If the bulls can now sustain Stellar Lumens (XLM) above $0.40, the next leg of the uptrend could begin.

XLM/USDT daily chart. Source: TradingView

The upsloping moving averages and the RSI near the overbought zone suggest that bulls are in command. Above $0.40, the XLM/USD pair could rally to $0.50 where the bears may again mount stiff resistance.

If the bulls fail to close the price above $0.40, the pair could again dip back to $0.35. A strong rebound from this support will suggest the bulls have flipped it to support, which will increase the possibility of a break above $0.40.

Contrary to this assumption, if the bears sink the price below the 20-day EMA ($0.315), it will suggest the current breakout was a bear trap.

XLM/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the pair has broken out of a symmetrical triangle, which has a target objective at $0.445. Both moving averages are sloping up and the RSI is in the positive zone, suggesting the bulls are in control.

If the price rebounds off the 20-EMA, it will indicate traders are accumulating on dips and that will enhance the prospects of the resumption of the uptrend. Conversely, a break below the 20-EMA will be the first sign that the momentum may be weakening.

THETA/USD

THETA is currently consolidating in an uptrend. The price action of the past few days has formed a bullish ascending triangle pattern that will complete on a breakout and close above $2.51.

THETA/USDT daily chart. Source: TradingView

The bulls had pushed the price above $2.51 on Feb. 5 but they could not sustain the breakout. This suggests the bears are trying to defend the resistance at $2.51.

However, the positive sign is that the bulls have not allowed the price to dip below the 20-day EMA ($2.09). If the price rebounds off the current levels, the bulls will again try to thrust the THETA/USD pair above $2.51.

If they succeed, the pair could resume the next leg of the uptrend. The pattern target of the breakout from the triangle is $3.56. This bullish setup will invalidate if the bears sink the price below the triangle.

THETA/USDT 4-hour chart. Source: TradingView

The 20-EMA on the 4-hour chart has started to turn down and the RSI has dropped into the negative territory, indicating the bears are attempting to make a comeback. A break below $2.10 could pull the price down to the support line of the triangle.

On the other hand, if the price turns up from the current levels or the support line of the triangle, it will suggest the bulls are buying on dips. They will then again try to push the price above the $2.51 resistance.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Price analysis 2/5: BTC, ETH, XRP, DOT, ADA, LINK, LTC, BNB, BCH, XLM

Altcoins are reaching multi-year highs while Bitcoin price builds momentum for the next run at the $40,000 level.

Bitcoin’s (BTC) correction from its January high has not shaken the confidence of institutional investors. According to Glassnode analysts, the number of whales holding more than 1,000 Bitcoin has increased by 200 this year.

Along with the institutions, several high profile investors have also committed money to the crypto sector. Hedge fund manager Paul Tudor Jones, former PepsiCo CEO Indra Nooyi, and American rapper LL Cool J have invested in a new venture capital crypto fund launched by Silver Lake Partners co-founder Glenn Hutchins and his associates.

Daily cryptocurrency market performance. Source: Coin360

The steady inflow into crypto assets suggests that investors are bullish in the long-term. ARK analyst Yassine Elmandjra believes that Bitcoin is still in the early stages of its bull phase. According to Elmandjra, if Bitcoin mimics its previous two bull runs, it could rally to about $390,000 before the current bull phase ends.

Even though Bitcoin’s price action attracts the bulk of the attention, several altcoins have been rallying higher. Let’s analyze the charts of the top-10 cryptocurrencies and determine their target objectives on the upside.

BTC/USD

Bitcoin has been facing resistance at the $38,000 level for the past two days, but the shallow correction on Feb. 4 suggests traders are not closing their positions and are buying on any minor dip. This increases the possibility of a break above $38,000.

BTC/USDT daily chart. Source: TradingView

There is a minor resistance at $40,000, but if the bulls can drive the price above it, the BTC/USD pair could retest the all-time high at $41,959.63.

The bears are likely to defend this level aggressively but if the bulls do not give up much ground, it increases the likelihood of the resumption of the uptrend.

The next resistance on the upside is $50,000 and then $60,000. The 20-day exponential moving average ($34,625) has turned up and the relative strength index (RSI) has climbed above 61, suggesting the bulls are back in command.

However, if the price turns down from the current levels, the pair may drop to the 20-day EMA. If the pair rebounds strongly from this level, the bulls will again try to resume the uptrend.

On the other hand, if the bears sink the price below the moving averages, the pair may consolidate between $28,850 and $38,000 for a few more days.

ETH/USD

Ether (ETH) picked up momentum after breaking out to a new all-time high on Feb. 2. There was some hesitation near the $1,675 overhead resistance but the bears could not even pull the price down to the breakout level at $1,473.096.

ETH/USDT daily chart. Source: TradingView

The shallow correction on Feb. 4 shows traders are in no mood to book profits as they anticipate the uptrend to extend further. Both moving averages are sloping up and the RSI is close to the overbought zone, indicating that the bulls are in control. The next target on the upside is $2,000.

This positive view will invalidate if the ETH/USD pair turns down and breaks below the 20-day EMA ($1,385). Such a move will suggest aggressive profit-booking at higher levels and may result in a deeper correction to the 50-day simple moving average ($1,087).

XRP/USD

XRP rebounded off the moving averages on Feb. 2, which suggests the selling pressure has reduced and the bulls are accumulating at lower levels. However, the bulls may not get an easy ride higher as the bears will try to stall the current rally at $0.50.

XRP/USDT daily chart. Source: TradingView

If the price turns down from $0.50, the XRP/USD pair could again drop to $0.3855 and consolidate between these two levels for a few days.

However, the 20-day EMA ($0.35) has started to turn up and the RSI is in the positive territory, indicating an advantage to the bulls. If the bulls can push and sustain the price above $0.50, the pair could rise to $0.60 and then to $0.75.

DOT/USD

Polkadot (DOT) surged and closed above the $19.40 resistance on Feb. 3, indicating the resumption of the uptrend. The bears attempted to drag the price back below $19.40 on Feb. 4 but the bulls defended the level aggressively.

DOT/USDT daily chart. Source: TradingView

The bulls have flipped $19.40 into support and this level could now act as a launchpad for the next leg of the uptrend. If the DOT/USD pair can ascend $21,7321, the next level to watch out for is $24.08 and then $30.

This bullish view will be negated if the bears sink and sustain the price below $18.50. Such a move will suggest the current breakout was a bull trap and the pair could then remain range-bound between $14.7259 and $19.40.

ADA/USD

Cardano (ADA) has soared above the ascending channel today, which suggests a pick-up in momentum. If the bulls can sustain the price above the channel, the altcoin could extend the rally to $0.60.

ADA/USDT daily chart. Source: TradingView

However, the bears are unlikely to give up without a fight. They will try to stall the rally at the current levels and sink the ADA/USD pair back into the channel. If they succeed, it may trap the aggressive bulls and the price could dip to the 20-day EMA ($0.37).

If the pair rebounds off the 20-day EMA, it will suggest the bulls continue to buy at lower levels. On the contrary, if the bears can sink the price below the support line of the channel, it will indicate a possible change in trend.

LINK/USD

Chainlink (LINK) rose to a new all-time high on Feb. 4 but the bulls could not hold on to the breakout. The bears tried to trap the aggressive bulls by sinking the price below the downtrend line but the buyers were unwilling to relent.

LINK/USDT daily chart. Source: TradingView

The long tail on the Feb. 4 candlestick showed the bulls continue to accumulate at lower levels. The upsloping moving averages and the RSI above 63 suggest the path of least resistance is to the upside. If the LINK/USD pair closes above $25.8532, a move to $30 is likely.

On the contrary, if the pair again closes below $25.8532, it will suggest that traders are booking profits at higher levels. A break below the 20-day EMA ($22) will be the first sign of weakness that could pull the price down to $20.1111.

LTC/USD

The correction on Feb. 4 shows the bears tried to sink Litecoin (LTC) back below the moving averages but failed. The bulls purchased the dip to the 20-day EMA ($140), which suggests a positive sentiment.

LTC/USDT daily chart. Source: TradingView

If the buyers can now drive the price above the $159 to $166 overhead resistance zone, the LTC/USD pair could retest $185.5821. The bears may defend this level but if the bulls do not allow the price to dip back below $166, it will enhance the prospects of a rally to $200.

This bullish view will invalidate if the pair turns down from the overhead resistance and drops below the moving averages. Such a move could drag the price down to $120.

BNB/USD

Binance Coin (BNB) resumed its up-move after breaking above $53 on Feb. 4. The bulls continued their buying today and pushed the price above the resistance line of the broadening wedge pattern, but the wick on the candlestick suggests the bears are selling at higher levels.

BNB/USDT daily chart. Source: TradingView

If the BNB/USD pair turns down from the current levels but the bulls do not give up much ground, it will indicate strength. The bulls will then again try to resume the uptrend. A breakout and close above $60 will open the doors for a possible rally to $80.

Although the indicators are positive, the RSI above 80 suggests the rally is overheated in the short-term. If the pair turns down from the current level and slips below $52, it could result in a drop to the 20-day EMA ($46).

BCH/USD

Bitcoin Cash (BCH) is struggling to rise above the $450 to $465.02 overhead resistance zone, which suggests the bears are defending this region aggressively. However, the selling dries up at lower levels because the bears have not succeeded in sinking the price below the 50-day SMA ($414) support.

BCH/USD daily chart. Source: TradingView

The flat 20-day EMA ($430.99) and the RSI near the midpoint does not give a clear advantage to either the bulls or the bears.

If the price rises from the current levels, the bulls will again try to propel the BCH/USD pair above $465.02. If they succeed, a rally to $515.35 and then to $539 is possible.

Conversely, if the bears sink the price below the 50-day SMA, the pair could drop to the next support at $370 and then to $353.

XLM/USD

Stellar Lumens (XLM) has been trading between $0.325 and $0.35 for the past four days. A tight consolidation near an overhead resistance signals strength and usually results in an upside breakout.

XLM/USDT daily chart. Source: TradingView

If the bulls can push and sustain the price above $0.35, the XLM/USD pair could rally to $0.409. The bears may again offer a stiff resistance at this level, but if the bulls can bulldoze their way higher, the pair may rally to $0.50.

Contrary to this assumption, if the bears sink the price below $0.325, a drop to the 20-day EMA ($0.30) is likely. A strong bounce will suggest a bullish sentiment, but a break below it could drag the pair down to $0.26.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

DeFi boom pushes Universal Market Access (UMA), SwissBorg and Siacoin (SC) higher

As the DeFi boom continues, Universal Market Access, SwissBorg, and Siacoin are notching triple-digit gains due to protocol upgrades and new product launches.

The total market capitalization of cryptocurrencies surged to $1.139 trillion on Feb. 4, just short of silver’s total market cap at $1.5 trillion.

While the crypto market cap is still way below that of gold, Bloomberg senior commodity strategist Mike McGlone said in a report that Bitcoin (BTC) has found strong support at $30,000 and it may now rally to $50,000 and higher.

Crypto market data daily view. Source: Coin360

However, some institutional investors who had invested at lower levels and are sitting on huge profits are taking some money off the table.

United Kingdom-based Ruffer Investment Management said it had initially invested about $600 million in November 2020, which had more than doubled when Bitcoin hit an all-time high at $41,959.63. The firm booked profits on an amount just more than their cost and decided to let the remaining balance ride.

While Bitcoin gradually climbs towards the all-time high, altcoins have been soaring, suggesting that traders have shifted their funds from BTC into Ether and other smaller-cap coins.

Let’s analyze three such tokens that are backed by strong fundamentals.

UMA/USD

Professional traders use volatility data to make informed decisions and be on the right side of  trade. Therefore, the CBOE Volatility Index, known as the VIX, is popular with traders.

Bitcoin is known for its high volatility and Universal Market Access (UMA) plans to offer traders an opportunity to trade volatility in a decentralized way. For that, the protocol plans to launch a uVol-BTC product that will be settled at the end of the month. Traders could use the token to speculate on the increase or decrease in volatility, or hedge their Bitcoin positions they do not want to sell during sharp corrections. If the product turns out to be successful, a uVOL-ETH token is also planned in the future.

Other than the regular synthetic tokens that track the price of an asset, traders keep looking for new opportunities that do not give institutions a direct edge. In order to cater to this demand, UMA plans to launch a new synthetic token called 'uSTONKS' that will be based on the ten most commented stocks on the r/wallstreetbets Reddit forum. The new uSTONKS token offers retail traders a unique way to benefit from the movement of the most popularly discussed stocks on the forum.

Early discussions are also in progress to create a “Big Mac Synth” based on the index invented by The Economist back in 1986. Launching innovative tokens attracts new traders. Another reason that could have added to the short-term demand for UMA was the negative 15.5% annualized yield for depositing Ether as collateral to borrow USDC.

UMA has soared from an intraday low at $11.234 on Feb.2 to an intraday high at $43.998 today, a 291% gain within three days. This sharp rally has pushed the relative strength index (RSI) deep into the overbought territory.

UMA/USDT daily chart. Source: TradingView

The long wick on today’s candlestick shows that traders are booking profits after the recent run-up. The first support on the downside is the 38.2% Fibonacci retracement level at $31.482.

If the UMA/USD pair rebounds off this support, it will suggest that traders are buying on a shallow correction and not waiting for a deeper fall. The bulls will then try to resume the up-move by pushing the price above $43.998. If they succeed, the pair could rally to $62.

Contrary to this assumption, if the bears sink and sustain the price below $31.482, the correction could deepen to the 61.8% retracement level at $23.75. Such a move will suggest that the bullish momentum has weakened.

CHSB/USD

Crypto projects that carry out buybacks increase value for their long-term investors. SwissBorg (CHSB) also does buybacks with 20% of threvenues made from fees, but unlike the usually followed method of a publicly shared scheduled buyback, the protocol buys only when the price is bearish and has dropped below the 20-day EMA. This ensures that the HODLers who do not sell their positions during the downturn benefit from the buybacks.

However, in the age of decentralized finance, buyback alone is unlikely to attract investors. Therefore, the protocol started rewarding CHSB token holders from Jan. 28 of this year. The premium users, who have staked 50,000 CHSB for a 12-month period, earn double the rewards on their crypto tokens, barring the quantity staked to go premium.

The protocol plans to launch a robo advisor in the future that will work similar to the rating agencies in traditional finance. The robo advisor will provide users with all the necessary information that can help investors decide on the project and the yield depending on their risk profile.

CHSB has been in a strong uptrend for the past few days. It rallied from an intraday low at $0.289898 on Jan. 26 to an intraday high at $1.008969 today, which is a 248% rally in a short time.

CHSB/USD daily chart. Source: TradingView

However, the recent rally has pushed the RSI deep into the overbought territory, which suggests the rally is vulnerable to a minor correction or consolidation.

The long wick on today’s candlestick suggests traders are booking profits near the psychological resistance at $1. The first support on the downside is the 38.2% Fibonacci retracement level at $0.734282.

If the bulls defend this support, the CHSB/USD pair will attempt to resume the uptrend. A break above $1.008969 could start the next leg of the up-move that could reach $1.15 and then $1.40.

On the other hand, if the bears sink the price below $0.734284, the decline could extend to the 20-day exponential moving average ($0.52). Such a fall will point to a possible range-bound action for a few days.

SC/USD

Several large corporations like Microsoft, Google, and Amazon are spending large amounts of money on their cloud storage systems.

However, using a centralized cloud storage service means the data is at the mercy of the corporation and several security breaches in the past are an example of how the data can be compromised. These disadvantages are alleviated in a decentralized cloud storage service such as Siacoin (SC) where the owners have complete control over their data.

Sia recently completed a hardfork to incorporate a new Sia foundation that will handle the ongoing developments of the Sia ecosystem. This will gradually free the Sia foundation from Skynet labs, which currently handles the operations of the protocol.

Rumors are that Coinbase may add support to Sia. If that happens, the coin could extend its up-move further.

SC surged from $0.004108 on Jan. 28 to $0.009950 on Jan. 29, a 142% rally within two days. After this sharp up-move, the token witnessed a correction that found support near the 61.8% Fibonacci retracement at $0.006340.

SC/USDT daily chart. Source: TradingView

The bulls are currently attempting to resume the uptrend but the bears have other plans. The SC/USD pair turned down from $0.009709 on Feb. 3, indicating that the bears are defending the overhead resistance aggressively.

If the bulls do not allow the price to dip below $0.007718, the pair could again try to break out of the overhead resistance. If they succeed, the pair could rise to $0.0120 and then $0.0150.

On the other hand, if the price slips below $0.007718, the pair could drop to the 20-day EMA ($0.006). A strong rebound off this support will point to a few more days of range-bound action. A break below the 20-day EMA could signal advantage to the bears.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Price analysis 2/3: BTC, ETH, XRP, DOT, ADA, LINK, LTC, BCH, BNB, XLM

Ethereum's rally to a new all-time high boosted investor sentiment in Bitcoin and several altcoins are now surging toward new highs.

Bitcoin’s (BTC) stellar run in the latter half of 2020 and MicroStrategy’s purchase of the digital asset appears to have attracted attention from several publicly listed companies in the United States. However, the lack of regulatory clarity could have deterred them from buying Bitcoin at lower levels.

To address this issue, business intelligence firm MicroStrategy is hosting an online seminar on Feb. 3 and 4, where “the legal considerations firms face while integrating Bitcoin into their corporate strategy” will be discussed. Several major crypto firms will also make presentations to the audience.

About 1,400 firms have signed up for the webinar, which shows companies are deeply interested in Bitcoin. Even if a handful of these firms end up buying Bitcoin, it could start the next leg of the rally to a new all-time high.

Daily cryptocurrency market performance. Source: Coin360

U.S.-based institutional investors have shown increasing interest in Bitcoin in 2020, which has propelled Coinbase to the top 1,000 websites in the world and one of the top 400 in the U.S.

The popularity seems to have increased further in January of this year. Morgan Creek Digital co-founder Anthony Pompliano recently highlighted that the Coinbase app was downloaded 1.3 million times in January, which is greater than “E-trade, TD Ameritrade, Charles Schwab, Fidelity, and Sofi” combined.

With these positive fundamental tailwinds, let’s analyze the charts of the top-10 cryptocurrencies and determine what the technicals project.

BTC/USD

Bitcoin broke above the downtrend line on Feb. 2 and followed that up with another up-move today, which invalidates the short-term bearish sentiment. The relative strength index (RSI) has jumped into the positive zone and the 20-day exponential moving average ($33,945) has started to turn up, indicating advantage to the bulls.

BTC/USDT daily chart. Source: TradingView

The BTC/USD pair could now rally to $38,000. If the bulls can drive the price above this resistance, the pair could retest the all-time high at $41,959.63. A breakout of this level could start the next leg of the up-move that may reach $50,000.

On the other hand, if the bears defend the $38,000 level aggressively, the price may turn down and drop to the 20-day EMA. If the price rebounds off this level, the bulls will again try to resume the uptrend.

But if the bears sink the price below the moving averages, the pair may consolidate between $28,850 and $38,000. A break below $28,850 could start a deeper correction.

ETH/USD

Ether (ETH) soared above the $1,400 to $1,473.096 overhead resistance on Feb. 2 and followed that up with another strong up-move today. This suggests that the bulls continue to buy at higher levels.

ETH/USDT daily chart. Source: TradingView

The price action of the past three days has invalidated the negative divergence on the RSI. The ETH/USD pair could now rally to $1,675 and if that level is also crossed, the rally could extend to $2,000.

Any correction is likely to find strong support at the breakout level at $1,400 and below that at the 20-day EMA ($1,321). A bounce off either level will suggest that bulls remain in command.

This positive view will invalidate if the pair reverses direction and breaks below the uptrend line. Such a move will suggest aggressive profit-booking at higher levels.

XRP/USD

XRP formed a Doji candlestick on Feb. 2, indicating indecision among the bulls and the bears. Today, the bulls are attempting to resolve the uncertainty in their favor by pushing and sustaining the price above $0.41123.

XRP/USDT daily chart. Source: TradingView

If they succeed, the XRP/USD pair could rally to $0.50 and then to $0.60. The gradually upsloping 20-day EMA ($0.33) and the RSI in the positive zone suggest that the bulls are trying to make a comeback.

However, if the bulls fail to sustain the price above $0.41123, the bears will try to pull the pair back below $0.3855. A break below the moving averages will suggest weakness and the decline may then extend to $0.245.

DOT/USD

Polkadot (DOT) bounced off the 20-day EMA ($15.97) on Feb. 1 and has soared above the all-time high today. If the altcoin closes above $19.40, it will suggest the next leg of the uptrend has begun.

DOT/USDT daily chart. Source: TradingView

The DOT/USD pair could then rally to $24.08 and then $30. The upsloping moving averages and the RSI near the overbought territory indicate the bulls are in control.

Contrary to this assumption, if the pair reverses direction from the current levels, a few more days of range-bound action is possible. The bears will have to sink the price below the $14.7259 support to tilt the advantage in their favor.

ADA/USD

Cardano (ADA) took support at the 20-day EMA ($0.35) and surged above the $0.38 resistance on Feb. 1. That was followed by another up-move on Feb. 2, which carried the altcoin near the resistance line of the ascending channel.

ADA/USDT daily chart. Source: TradingView

However, the long wick on the Feb. 2 candlestick suggests traders are booking profits near the resistance line. The ADA/USD pair has formed an inside day candlestick pattern today, which generally acts as a continuation pattern.

If the bulls can thrust the price above $0.4546265, the pair could rally to the resistance line of the channel. A break above the channel can push the price to the psychological resistance at $0.50.

Contrary to this assumption, if the pair turns down from the current levels and breaks below $0.38, it will suggest profit-booking at higher levels. A break below the channel will indicate a possible trend change.

LINK/USD

Chainlink (LINK) bounced off the 20-day EMA ($21.80) on Feb. 1 and broke above the downtrend line today. The bulls will now try to propel the price above the all-time high at $25.7824 and resume the uptrend.

LINK/USDT daily chart. Source: TradingView

If they succeed, the LINK/USD pair could rally to $30. The rising moving averages and the RSI above 62 indicate advantage to the bulls.

On the other hand, if the price turns down from $25.7824, the LINK/USD pair could again drop to the 20-day EMA. A break below this support may result in a fall to $20.1111 and the pair could consolidate in this range for a few days.

The advantage will tilt in favor of the bears if the $20.1111 support cracks. Such a move could sink the price to the 50-day SMA ($17.11).

LTC/USD

Litecoin (LTC) broke above the downtrend line and the moving averages on Feb. 2. This move invalidates the head and shoulders pattern, which suggests the selling pressure has reduced.

LTC/USDT daily chart. Source: TradingView

The LTC/USD pair could now rally to $165.9709. If the price turns down from this resistance, it will point to a possible consolidation between $120 and $165.9709.

On the other hand, if the bulls can drive the price above $165.9709, the pair could retest $185.5821. A break above this resistance could resume the uptrend.

This bullish view will invalidate if the pair turns down from the current levels and breaks below the $120 support. Such a move will suggest that the bears are back in command.

BCH/USD

The bulls have pushed Bitcoin Cash (BCH) above the downtrend line and the 20-day EMA ($431), which suggests the bearish sentiment has weakened. The 20-day EMA has flattened out and the RSI is just above the midpoint, suggesting a balance between supply and demand.

BCH/USD daily chart. Source: TradingView

The bulls can now push the price to $465 and then to $515.35. If the price turns down from either level, it will suggest that bears are selling on rallies. The bears will then again try to sink the price below the moving averages.

If they succeed, the BCH/USD pair could drop to the $370 to $353 support zone. A bounce off this zone will keep the pair range-bound for a few more days, but a break below it could pull the price down to $275.

BNB/USD

Binance Coin (BNB) skyrocketed above the $50 psychological resistance on Feb. 1, indicating strong demand from the bulls. Another positive sign is that the altcoin has not given up much ground since then, which shows that traders are not booking profits in a hurry.

BNB/USDT daily chart. Source: TradingView

In a strong uptrend, corrections are usually shallow and last for one to three days. If the bulls can push the price above $53, the next leg of the up-move may begin. The next target objective on the upside is $60.

Contrary to this assumption, if the bears sink the price below $49, the BNB/USD pair could drop to $47. If the bulls can flip this previous resistance to support, the pair will again try to resume the uptrend.

The first sign of weakness will be a break below $47 and the trend could turn in favor of the bears if the 50-day SMA ($39.75) cracks.

XLM/USD

The bears have been defending the $0.325 to $0.35 overhead resistance zone for the past few days, but they have not been able to sink and sustain Stellar (XLM) below the 20-day EMA ($0.29). This suggests the bulls are buying at lower levels.

XLM/USDT daily chart. Source: TradingView

When the price repeatedly pierces a resistance level, it tends to weaken. Therefore, the possibility of an upward breakout in the XLM/USD pair is high. If the bulls can sustain the price above $0.35, the pair could rally to $0.409.

A breakout above this level will start the next leg of the uptrend that could reach $0.50. The rising moving averages and the RSI above 64 suggest the path of least resistance is to the upside.

Contrary to this assumption, if the pair breaks below the 20-day EMA, it will suggest a change in sentiment. That could result in a drop to the 50-day SMA ($0.235).

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Band, Loopring (LCR) and Cream secure a slice of DeFi with new partnerships

Band, Loopring and Cream aim to increase their DeFi market share by building new partnerships and offering solutions that address fees, lending and price discovery.

The U.S. dollar lost about 7% of its value in 2020, while Bitcoin rallied about 300% during the same period. As Bitcoin’s institutional adoption increases, United States companies may start to diversify their treasury with other stores of value, and Bitcoin (BTC) stands a good chance to garner a portion of it.

Crypto market data daily view. Source: Coin360

Ark Invest’s latest report, "Bitcoin: Preparing for Institutions," shows that even a paltry allocation of 1% by companies from the S&P 500 could boost Bitcoin’s price by $40,000. However, analysts at Ar believe that the allocation is likely to be in the range of 2.5% to 6.5%, which "could impact bitcoin’s price by $200,000 to $500,000."

Even as Bitcoin’s price consolidates and readies for the next leg up, several altcoins have been rising, backed by strong fundamentals and investors' high expectations of their upcoming products. Let’s look at three such tokens today.

BAND/USD

The decentralized finance space has boomed in the past few months, and the success of the protocols rely heavily upon data sources that are decentralized, fast and reliable. This is where Band Protocol steps in. The cross-chain data oracle has announced several partnerships in the past few days, which shows it is gradually building its market share.

The strong rally in stocks such as GameStop, AMC and others have captured traders' attention in the past few days. Band’s tie-up with Injective Protocol to deliver decentralized price oracles for various stocks to be supported on the decentralized derivatives platform could benefit the price of its native token, BAND, as a successful integration would be followed by an increase in demand.

Similarly, Linear Finance, a derivatives asset protocol, will also use Band’s real-time price feeds to offer its clients a seamless trading experience for several synthetic assets.

Band is not limited to only providing price feeds of cryptocurrencies, foreign exchange assets and commodities. Elrond and Band have expanded their partnership further to bridge the two networks to provide off-chain data to various applications being developed on the Elrond network. Other than the usual price feeds, Band will also cater to data requests for sports, gaming, esports and much more.

Along with these, Band has also entered into partnerships with the Moonbeam protocol, Nervos and Fantom in the past few days and broadened its existing partnership with CoinGecko.

BAND price rose from $7.1532 on Jan. 22 to $12.949 on Tuesday, an 81% rally within a short time.  Previous to this move, the price had largely been stuck in the range of $7 to $11.50 for the past few days.

BAND/USDT daily chart. Source: TradingView

The bulls pushed the price above the range on Tuesday, but the long wick on the day’s candlestick shows the bears are aggressively selling at higher levels. This has dragged the price back into the aforementioned trading range.

If the bulls do not give up much ground, then one more attempt to break above the range is likely. The 20-day exponential moving average ($9.28) has started to turn up, and the relative strength index (RSI) is in the positive territory, which suggests that the path of least resistance is to the upside.

If the bulls can drive and sustain the price above $11.50, the BAND/USD pair could rally to $16 and then to $17.78. This zone may act as stiff resistance, but if the bulls can propel the price above it, the momentum could further pick up.

Contrary to this assumption, if the bears successfully defend the $11.50–$12.949 resistance zone, the pair may extend its stay inside the range for a few more days.

LRC/USD

The GameStop saga and the trading limits imposed on retail traders by brokerages like Robinhood have exposed their significant flaws. This is likely to draw traders to decentralized exchanges where control does not lie with any central entity.

Transaction fees are an extremely important aspect during trading, especially for smaller-sized traders. So, when the Ethereum gas fees increase, these retail traders are the most affected. Loopring (LRC) attempts to solve this problem with their layer-two scaling.

Data from Dune Analytics shows that Loopring’s fee collection recently surged to its highest-ever level due to increasing volume. The protocol recently updated its LRC model and announced a new fee distribution pattern to its various participants. This could further attract LRC investors who may want to benefit from the rising popularity of the protocol.

LRC rose from an intraday low at $0.33651 on Jan. 22 to an intraday high at $0.57618 on Jan. 31, a 71% rally within a few days. The upsloping moving averages and the RSI in the positive territory suggest that bulls are in control.

LRC/USDT daily chart. Source: TradingView

The up-move is currently facing resistance near $0.55 and the LRC/USD pair could drop to the 20-day EMA ($0.43). This is an important level to watch out for because the pair has taken support at the 20-day EMA on three previous occasions.

If the pair again rebounds off the 20-day EMA, the bulls will make one more attempt to resume the uptrend by pushing the price above $0.62167. If they succeed, the pair could rally to $0.71773 and then to $0.78.

This bullish view will invalidate if the bears sink and sustain the price below the 20-day EMA. Such a move will suggest that the bulls are not buying the dips anymore and that could result in a fall to $0.35 and then to the 50-day simple moving average ($0.31).

CREAM/USD

Certain aspects of traditional finance could act as an inspiration to build projects in the decentralized space. Cream Finance (CREAM) has recently announced the launch of an Iron Bank, which is guided by the success of the $10 trillion U.S. corporate debt market.

While there are several peer-to-peer lending protocols existing in the crypto space, Cream has taken it a step further and created a protocol-to-protocol lending mechanism. The main attraction of the Iron Bank is that it will facilitate zero-collateral lending.

To keep the risk under check, Cream will set a credit limit after white listing the protocols. Initially, the Iron Bank is available only for Cream’s partners but if this project succeeds, it is likely to be a huge positive for the entire DeFi space.

In other news, Cream recently widened its services by adding SushiSwap and Uniswap LP tokens as collateral options for lending and borrowing.

CREAM rallied from $119.35 on Jan. 22 to an intraday high at $319.9 today, a 168% rally within a short time. The long wick on the day’s candlestick shows that traders aggressively booked profits at higher levels.

CREAM/USDT daily chart. Source: TradingView

If the bulls do not allow the price to dip below the 38.2% Fibonacci retracement level at $251.65, it will suggest accumulation at lower levels. The upsloping 20-day EMA ($181) and the RSI near the overbought zone suggest advantage to the bulls.

If the bulls can push and sustain the price above $294.80, the CREAM/USD pair could rally to $362 and then to $430.

Conversely, if the bears sink the price below $251.65, the pair could dip to the 61.8% retracement level at $209.45.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Price analysis 2/1: BTC, ETH, XRP, DOT, ADA, LINK, LTC, BCH, BNB, XLM

Bitcoin price is trading in a tight range, which is allowing multiple altcoins to push higher.

Tesla CEO Elon Musk recently voiced his support for Bitcoin (BTC) during a chat with Clubhouse. Musk said that his friends tried to onboard him to the Bitcoin bandwagon as early as 2013, but the world’s richest man did not take the final step. Musk admitted that he was “late to the party.”

Musk also said that Bitcoin could be “on the verge of getting broad acceptance by conventional finance." While these comments by the SpaceX founder are positive, they did not move the markets since he did not commit to buying Bitcoin as a personal investment or for the treasury reserves for his companies.

Daily cryptocurrency market performance. Source: Coin360

However, institutional investors have continued their purchases without waiting for a deeper correction. CoinCorner CEO Danny Scott noted that recently a single entity had withdrawn $500 million worth of Bitcoin, an indication of institutional buying.

While Bitcoin buyers seem to be planning to hold their positions, the same cannot be said about the pump and dump schemes that are being promoted in select altcoins. First, it was Dogecoin (DOGE) and today it is XRP’s 50% fall from $0.75 that may have left several novice traders with huge losses.

These violent corrections should be a lesson to traders and remind them to follow a well thought out trading strategy instead of getting carried away by emotions and greed.

Let’s study the charts of the top-10 cryptocurrencies to determine the trend and the path of least resistance.

BTC/USD

Bitcoin has been hugging the downtrend line for the past three days, but the bulls have not been able to push and sustain the price above it. This shows that the bears are aggressively defending the higher levels.

BTC/USDT daily chart. Source: TradingView

The 20-day exponential moving average ($33,412) has flattened out and the relative strength index (RSI) is near the midpoint, suggesting a balance between supply and demand.

If the bears sink the price below the $31,900 support, the BTC/USD pair could drop to the 50-day simple moving average ($30,920) and then to the critical support at $28,850. A break below this level will complete a bearish descending triangle pattern that could start a deeper correction.

Conversely, if the bulls can push and sustain the price above $35,000 the pair may rally to $38,520 and then to $40,000. The next leg of the up-move could start after the bulls drive the price above the all-time high at $41,959.63.

ETH/USD

The bears are defending the $1,400 overhead resistance while the bulls are buying the dips to the 20-day EMA ($1,258). This suggests that Ether (ETH) is stuck in a tightening trading range, which is likely to expand within the next few days.

ETH/USDT daily chart. Source: TradingView

If the resolution happens to the downside and the bears sink the price below the uptrend line, the selling could intensify. This may result in a possible drop to the 50-day SMA ($1,005) and then to the critical support at $840.93.

On the contrary, if the ETH/USD pair turns up from the current level and breaks above the $1,400 to $1,473.096 resistance zone, it will indicate the resumption of the uptrend. The pair could then rally to $1,675.

While the upsloping moving averages suggest an advantage to the bulls, the negative divergence on the RSI favors the bears. As the indicators are sending mixed signals, it is better to wait for the price to complete a breakout before taking a directional bet.

XRP/USD

XRP skyrocketed to an intraday high at $0.755 today, but the long wick on the day’s candlestick shows that traders used the higher levels to aggressively close their long positions.

XRP/USDT daily chart. Source: TradingView

The XRP/USD pair has plunged to the $0.3885 support. If the bears sink the price below this level, the selling could intensify and the pair could drop to the moving averages and then to $0.245, giving back all of the recent gains.

A break below $0.245 could result in a fall to $0.17351. On the other hand, if the bulls can defend the $0.3885 support, the pair may again attempt to rally to $0.60.

DOT/USD

Polkadot’s (DOT) rebound on Jan. 28 fizzled out at $17.7522 on Jan. 29. The failure of the bulls to push the price to the top of the $14.7259 to $19.40 range suggests demand dries up at higher levels.

DOT/USDT daily chart. Source: TradingView

The 20-day EMA ($15.41) has started to flatten out and the RSI is gradually dropping towards the center, which points to a balance between supply and demand. If the price rebounds off the $14.7259 support, the consolidation may extend for a few more days.

Contrary to this assumption, a break below the $14.7259 support will be the first sign of weakness. That could pull the DOT/USD pair down to the 61.8% Fibonacci retracement level at $11.8383.

This negative view will invalidate if the bulls can push the price above the $19.40 range. Such a move will signal the resumption of the uptrend.

ADA/USD

Cardano (ADA) broke above the downtrend line on Jan. 30, but the bulls could not push the price above the $0.38 resistance, which shows that demand dries up at higher levels.

ADA/USDT daily chart. Source: TradingView

However, the positive sign is that the bulls have not allowed the price to dip below the support line of the ascending channel. The buyers are currently attempting to defend the 20-day EMA ($0.33).

A strong rebound off the current levels could reach the $0.38 overhead resistance. If the bulls can push the price above this level, the ADA/USD pair could resume the uptrend, with the next target objective at $0.48.

Conversely, if the bears pull the price below the support line of the channel, the pair could drop to $0.28 and then to the 50-day SMA ($0.25).

LINK/USD

Chainlink (LINK) has not been able to sustain above the $24 level for the past few days, which suggests traders are closing their long positions on rallies.

LINK/USDT daily chart. Source: TradingView

The RSI has formed a descending triangle pattern, which will complete on a break and close below 53. Sometimes, the patterns on the indicators project the upcoming directional move in the price.

If the bears can sink the price below the 20-day EMA ($21.18), the selling could intensify and break the $20.1111 support. If that happens, the LINK/USD pair could drop to $17.7777 and then to the 50-day SMA ($16.63).

This negative view will invalidate if the pair rebounds off the 20-day EMA or the $20.1111 support and sustains above the downtrend line. Such a move will enhance the prospects of the resumption of the uptrend.

LTC/USD

Litecoin (LTC) has been facing stiff resistance at the downtrend line for the past few days. The long wick on the day’s candlestick suggests every relief rally is being sold into.

LTC/USDT daily chart. Source: TradingView

If the bulls fail to push the price above the downtrend line within the next few days, the possibility of a break below the $120 support increases. If that happens, the LTC/USD pair will complete a bearish head and shoulders pattern, which has a target objective of $55.

However, it may not be a straight fall because the bulls will try to stall the decline at $100 and then again at $70.

This negative view will be negated if the bulls can push and sustain the price above the downtrend line. Such a move will suggest that the selling pressure may have ended. On the upside, a break above $150 will suggest the bulls are making a comeback.

BCH/USD

The relief rally in Bitcoin Cash (BCH) is facing stiff resistance at the 20-day EMA ($429), which suggests the bears are attempting to defend this level. If the price turns down and breaks below the $370 to $353 support zone, the altcoin could drop to $275.

BCH/USD daily chart. Source: TradingView

The downsloping 20-day EMA and the RSI just below the midpoint suggest the bears have a marginal edge.

Contrary to this assumption, if the bulls can push the price above the downtrend line, the BCH/USD pair may rally to $465 and then to $539. If the price turns down from this resistance, the pair could extend its consolidation for a few more days.

BNB/USD

Binance Coin (BNB) soared above the previous all-time high at $47.2187 and hit a new high at $50.60 today. Whenever the price of an asset class makes a new all-time high, it shows that the bulls are in command.

BNB/USDT daily chart. Source: TradingView

However, the long wick on today’s candlestick suggests profit-booking near the psychological resistance at $50. If the price fails to rise and sustain above $50, the BNB/USD pair could consolidate in a tight range for a few days.

A breakout and close above $50 could start the next leg of the up-move that may reach $60. Conversely, if the bears sink the price below $46, the pair could drop to the support line of the ascending broadening wedge pattern. A break below this support could signal the start of a deeper correction.

XLM/USD

The bulls and the bears are locked in a battle for supremacy in the $0.325 to $0.35 zone for the past three days. Although the bulls pushed Stellar (XLM) above $0.35 on Jan. 28, 30, and today, they could not sustain the higher levels, which shows traders are booking profits on rallies.

XLM/USDT daily chart. Source: TradingView

However, the bulls have not allowed the price to sink below the 20-day EMA ($0.28), indicating accumulation at lower levels. The bulls are currently trying to push and sustain the price above the overhead resistance zone.

If they succeed, the XLM/USD pair could rise to $0.409. A breakout and close above this resistance may start the journey towards $0.50. The rising moving averages and the RSI above 61 suggest the bulls have the upper hand.

This positive view will invalidate if the bears sink the price below the 20-day EMA. Such a move could pull the price down to the 50-day SMA ($0.228).

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Top 5 cryptocurrencies to watch this week: BTC, ETH, UNI, ATOM, COMP

Bitcoin price fell back into the descending triangle but this dip may attract buyers to altcoins and DeFi tokens in the short term.

Over the past seven days, the crypto market saw an uptick in volatility as Bitcoin (BTC) and Dogecoin (DOGE) price rallied higher simply because of social media activity. In situations like these, traders who make their investment decisions based on emotions tend to incur heavy losses and this is exactly what happened last week.

Dogecoin’s (DOGE) recent pump and dump caused several new traders who bought due to FOMO to lose money within a short time and this scenario is likely to play out again as social media groups have decided that collective pumps of altcoins is a new method of investing.

A similar trend currently seems to be developing in Bitcoin (BTC), which has retraced a large portion of the up-move that was caused due to the “Elon pump” on Jan. 29. This shows that barring a few emotional buyers, most professional traders may have used the rally to lighten their long positions.

Crypto market data daily view. Source: Coin360

Stack Funds head of research Lennard Neo believes the Bitcoin miners are selling on rallies and that trend may continue as the Chinese New Year holiday approaches. Neo expects Bitcoin’s price to remain volatile in the near term.

Even as Bitcoin’s price consolidates, the decentralized finance tokens continue to surge, which suggests traders' focus has shifted to the DeFi space. Let’s analyze the charts of the top-5 cryptocurrencies that could trend in the next few days.

BTC/USD

Bitcoin’s long wick on Jan. 29 shows the bears aggressively sold the rally above the downtrend line of the descending triangle. That was followed by a Doji candlestick pattern on Jan. 30, indicating indecision among the bulls and the bears.

BTC/USDT daily chart. Source: TradingView

The failure of the bulls to push the price above the downtrend line today has attracted further selling. The bears are currently trying to sustain the price below the 20-day exponential moving average ($33,395).

If they succeed, the BTC/USD pair may drop to the 50-day simple moving average ($30,631) and then to $28,850.

A breakdown and close below $28,850 will complete the bearish descending triangle pattern that has a target objective at $15,741. However, it is unlikely to be a straight fall because the bulls will try to arrest the decline at the 50% Fibonacci retracement level at $25,897.42 and again at the 61.8% retracement at $22,106.73.

This negative view will invalidate if the price turns up from the current level or rebounds off the $28,850 support and sustains above the downtrend line. Such a move will suggest strong accumulation at lower levels, which could result in a rise to $40,000.

BTC/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the breakout above the downtrend line met with strong selling pressure and the price quickly retracted back into the triangle.

The failure of the bulls to push the price back above the downtrend line has attracted selling and the bears have pulled the price below the 20-EMA. The bulls are currently attempting to defend the 50-SMA but if this support also cracks, the pair may start its journey towards $28,850.

This negative view will invalidate if the price rebounds off the current level and rises above the downtrend line. Such a move could push the price to $38,519.63.

ETH/USD

Ether (ETH) broke above the $1,400 resistance on three previous occasions but the bulls could not sustain the breakout, which shows profit-booking at higher levels. However, the positive thing is that the bulls have not given up much ground in the past few days. This shows the bulls are accumulating on dips.

ETH/USDT daily chart. Source: TradingView

The ETH/USD pair had formed a Doji candlestick pattern on Jan. 30, indicating uncertainty. That indecision has resolved to the downside today and the pair may now drop to the 20-day EMA ($1,253), which is likely to act as strong support.

A bounce off the support will suggest the sentiment remains bullish and traders are buying on dips. The bulls will then try to resume the uptrend. If the bulls can drive the price above the $1,400 to $1,473.096 resistance zone, the pair could rally to $1,675 and then to $2,000.

This bullish view will invalidate if the bears sink the price below the 20-day EMA and the uptrend line. In such a case, the pair may drop to the 50-day SMA ($990).

ETH/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the formation of an ascending triangle pattern, which will complete on a breakout and close above $1,440. This bullish setup has a target objective of $1,768.

However, the moving averages have flattened out and the relative strength index (RSI) is just below the midpoint, which suggests a balance between supply and demand.

If the bears sink the price below the support line of the triangle, it will invalidate the pattern. The next support on the downside is the uptrend line and then $1,050.

UNI/USD

Uniswap (UNI) is in a strong uptrend that has pushed the RSI deep into the overbought territory. While the RSI can remain overbought for an extended period, traders should be cautious as corrections from overbought levels can be swift and sharp.

UNI/USDT daily chart. Source: TradingView

The first support on the downside is the 38.2% Fibonacci retracement level at $15.3963. If the price rebounds off this level, it will suggest the bulls are aggressively buying the dips and are not waiting for a deeper correction to enter.

If the bulls can push the price above $20.5612, the UNI/USD pair could rally to $28 and then to $32. Both moving averages are rising and the RSI is above 79, indicating the bulls are in control.

However, if the correction deepens below $15.3963, the next support is at the 20-day EMA ($11.85), which is near the 61.8% Fibonacci retracement level at $12.2054. A deeper fall usually delays the start of the next leg of the uptrend.

UNI/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the pair has made a flag pattern. If the bulls can push the price above the flag, the uptrend could resume and the pair may rally to $22 and then to $25.

Another possibility is that the pair continues to correct and drop to the 20-EMA. If the price rebounds off this support, it will suggest the sentiment remains positive and the bulls are buying on minor dips.

During the current leg of the uptrend, the price has repeatedly taken support at the 20-EMA. Therefore, a break below the 20-EMA will suggest the bullish sentiment may be waning and could result in a drop to $15.3963 and then to the 50-SMA.

ATOM/USD

Cosmos (ATOM) has formed a cup and handle pattern that will complete on a breakout and close above $8.877. If the bulls can propel the price above the $10.20 resistance, the uptrend could begin.

ATOM/USDT daily chart. Source: TradingView

The first target on the upside is $11.151 and the next level to watch out for is $13.554. The rising moving averages and the RSI’s bounce from the midpoint suggest the bulls have the upper hand.

If the bears sink the price below the 20-day EMA ($7.65), the ATOM/USD pair may remain range-bound between $6.603 and $8.877 for a few more days.

The bullish assumption will be negated if the bears sink and sustain the price below the 50-day SMA ($6.4). Such a move may pull the price down to $5.50 and then to $4.50.

ATOM/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the bulls have pushed the price above the downtrend line of the descending triangle. This has invalidated the bearish setup but the bulls are struggling to thrust the price above the $8.877 resistance.

The flat moving averages and the RSI near the midpoint suggest the pair may remain range-bound between $8.877 and $6.726 for some more time. If the bulls can propel the price above $8.877, the pair could rise to $10.20, while a break below $6.726 will suggest the bears are trying to make a comeback.

COMP/USD

Compound (COMP) completed a rounding bottom pattern on Jan. 29 when it broke and closed above the $272.61 resistance. This reversal setup has a target objective of $464.60.

COMP/USDT daily chart. Source: TradingView

The upsloping moving averages and the RSI near the overbought territory suggest bulls are in command. After the breakout from a pattern, the price usually retraces and retests the breakout level, but if the trend is very strong, it only consolidates or enters a minor correction before resuming the up-move.

If the COMP/USD pair rebounds off $272.61, it will suggest the bulls have flipped the previous resistance into support. That could then act as a launchpad for the next leg of the uptrend.

This positive view will invalidate if the bears sink and sustain the price below $272.61. Such a move will indicate profit-booking at higher levels and a lack of buying on dips.

COMP/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows traders booked profits near $340 but the correction was short-lived as the price turned up from $304.84. If the bulls can now drive the price above $340, the pair may rally to $405.

On the other hand, if the price again turns down from $340, the pair may drop to the 20-EMA. If the price rebounds off this support, the bulls will again try to resume the up-move, but if the bears sink the pair below the 20-day EMA, a drop to $272.61 will be on the cards.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Price analysis 1/29: BTC, ETH, DOT, XRP, ADA, LINK, LTC, BCH, BNB, XLM

Bitcoin’s surprise rally to $38,500 lifted sentiment across the market but the temporary boost appears to be losing steam.

Sentiment plays a major role in the short-term price action of an asset. This truth was demonstrated today when Elon Musk, the world’s richest man, simply wrote 'Bitcoin’ in his Twitter bio. Crypto traders and Musk followers immediately noticed and Bitcoin price conveniently shot up a few minutes after the tweet.

When BTC price makes a sharp directional move, traders buy into the breakout and short-sellers are squeezed out of their positions. That is what seems to have happened with Bitcoin (BTC) as the sentiment swiftly turned bullish.

It is not only Bitcoin that has seen a pick up in sentiment. Rumors were afloat that Reddit users, who were recently responsible for GameStop’s massive surge in price, were discussing whether or not Dogecoin’s (DOGE) could be pushed to $1. This resulted in a huge spike in Dogecoin’s price.

Daily cryptocurrency market performance. Source: Coin360

Trading with excessive greed and emotion can be risky. While professional traders may make money in such volatile environments, the novice retail trader usually gets stuck at higher levels and has to bear heavy losses. Therefore, traders should keep their greed in check and stick to their trading strategy.

In volatile environments, the price action and trends can change quickly. Let’s analyze the charts of the top-10 cryptocurrencies to spot the support and resistance levels that could be helpful in making trading decisions.

BTC/USD

Bitcoin held the 50-day simple moving average ($30,065) on Jan. 27 and dip buyers aggressively purchased on Jan. 28, which pushed the price to the 20-day exponential moving average ($33,555).

BTC/USDT daily chart. Source: TradingView

The buying continued today and the bulls have propelled the price above the downtrend line. This move invalidates the short-term bearish view on the BTC/USD pair.

There is a minor resistance at $38,000, but if this level is crossed, the rally could extend to $40,000 and then to $41,959.63. The current all-time high may act as stiff resistance but if the momentum can push the price above it, the journey to $50,000 may begin.

Contrary to this assumption, if the price turns down from either overhead resistance, the bulls are likely to defend the 20-day EMA. If they succeed, it will suggest traders are buying on dips. The bulls will then again try to resume the uptrend.

The trend will turn in favor of the bears if the pair turns down and plummets below the critical $28,850 support.

ETH/USD

Ether (ETH) bounced off the 20-day EMA ($1,234) on Jan. 28, which shows the bulls are aggressively buying on every minor dip and are not waiting for a deeper correction to enter long positions.

ETH/USDT daily chart. Source: TradingView

The bulls had driven the price above the $1,400 overhead resistance today but are currently struggling to hold the higher levels. If they can sustain the price above $1,400, a retest of the all-time high at $1,473.096 is possible.

A breakout to a new all-time high will open the gates for a further rally to $1,675 and then $2,000. The upsloping moving averages suggest advantage to the bulls, but the negative divergence on the relative strength index (RSI) points to a weakening momentum.

If the bears can sink and sustain the ETH/USD pair below the uptrend line, it will indicate weakness.

DOT/USD

Polkadot’s (DOT) strong rebound off the $14.7259 support on Jan. 28 shows the bulls are aggressively buying on dips to this level. The altcoin could now extend its stay inside the $14.7259 to $19.40 range for a few more days.

DOT/USDT daily chart. Source: TradingView

A shallow correction after a strong rally and consolidation near the overhead resistance are signs of strength. This shows traders are not booking profits in a hurry as they anticipate the uptrend to resume.

If the bulls can push the price above $19.40, the next leg of the uptrend could begin. The first target objective is $24 and then $27. The upsloping moving averages and the RSI above 60 suggest the bulls are in control.

This bullish view will invalidate if the price turns down from the current level and breaks below the $14.7259 support. Such a move will suggest traders are aggressively booking profits and that could result in a drop to the 61.8% retracement at $11.8383.

XRP/USD

The bulls defended the $0.245 support on Jan. 27 and XRP started a relief rally on Jan. 28. This shows traders are accumulating at lower levels. The flat 20-day EMA ($0.28) and the RSI just below the midpoint suggest the selling pressure has reduced.

XRP/USDT daily chart. Source: TradingView

The bulls had pushed the price above the downtrend line today, but they could not sustain the higher levels. This indicates, traders are offloading their positions at higher levels as they do not expect a sustained up-move.

If the price turns down from the current level, the bears will again try to break the $0.245 support. If they succeed, a drop to $0.17351 is possible. On the other hand, if the bulls can sustain the price above the downtrend line, the XRP/USD pair may rally to $0.3855.

ADA/USD

Cardano (ADA) bounced off the support line of the ascending channel on Jan. 28, which shows the bulls are accumulating on dips. The buying has continued today and the altcoin has risen above the downtrend line.

ADA/USDT daily chart. Source: TradingView

The ADA/USD pair could now rally to $0.38 and then to $0.40. If the bulls can drive the price above this resistance, the pair may rally to the resistance line of the channel near $0.46. The momentum could pick up if the bulls propel the price above the channel.

The gradually upsloping 20-day EMA ($0.32) and the RSI in the positive zone suggest bulls have the upper hand. This bullish move will be negated if the price turns down and plummets below the support line of the channel. If that happens, the pair could drop to the 50-day SMA ($0.24).

LINK/USD

The bulls flipped the previous resistance at $20.1111 into support when Chainlink (LINK) rebounded off it on Jan. 27. The buyers will now try to resume the uptrend by pushing the price above the all-time high at $25.7824.

LINK/USDT daily chart. Source: TradingView

If they succeed, the LINK/USD pair could rally to $30. The upsloping moving averages and the RSI in the positive territory suggest the trend favors the bulls.

Contrary to this assumption, if the pair turns down from the current level or the overhead resistance and breaks below $20.1111, it will suggest the sentiment has turned negative and traders are selling on rallies. That could pull the price down to $17.7777 and then to the 50-day SMA ($16).

LTC/USD

Litecoin (LTC) did not complete the bearish head and shoulders pattern on Jan. 27 as the bears could not sustain the price below the critical $120 support. The altcoin rebounded sharply on Jan. 28, suggesting strong demand at lower levels.

LTC/USDT daily chart. Source: TradingView

The relief rally has reached the downtrend line, which may act as a resistance. If the price turns down from the downtrend line, the bears will again try to sink the price below the neckline of the H&S pattern at $120. If they succeed, a drop to $100 and then to $70 may be on the cards.

Conversely, if the bulls can drive the price above the downtrend line, it may result in a rally to $165.9709. The bears may attempt to defend this level but if the LTC/USD pair can climb above it, a retest of $185.5821 is possible.

The price action at the downtrend line is likely to decide whether the next move will favor the bulls or the bears.

BCH/USD

Bitcoin Cash (BCH) bounced off the $370 support on Jan. 28, which suggests the bulls are attempting to defend this level. The rebound is currently facing resistance at the 20-day EMA ($437).

BCH/USD daily chart. Source: TradingView

If the price turns down from the current level and breaks below the 50-day SMA ($395), the bears will try to sink the price below the $370 to $353 support zone.

However, the 20-day EMA is flattening out and the RSI is just below the midpoint, indicating a balance between supply and demand.

If the bulls can sustain the price above the 20-day EMA, the BCH/USD pair may rise to $465 and then to $515 and extend its consolidation by a few more days.

BNB/USD

Binance Coin (BNB) bounced off the support line of the ascending broadening wedge pattern on Jan. 28, which shows strong demand at lower levels. The bulls continued their purchase today and pushed the price above the $43.4241 resistance but are struggling to hold on to the higher levels.

BNB/USDT daily chart. Source: TradingView

The gradually upsloping 20-day EMA and the RSI in the positive territory suggest the path of least resistance is to the upside. If the bulls can sustain the price above $43.4341, the BNB/USD pair could retest the all-time high at $47.2187.

A breakout of this resistance will suggest the resumption of the uptrend with the next target objective at $50 and then $55. This bullish view will invalidate if the pair turns down from the current level and breaks below the support line.

XLM/USD

Stellar Lumens (XLM) broke below the $0.26 support on Jan. 27, but the bears could not capitalize on this weakness. This attracted aggressive buying from the bulls on Jan. 28, resulting in a sharp bounce that pushed the price back above $0.26.

XLM/USDT daily chart. Source: TradingView

The buying continued today and the bulls propelled the price above the $0.35 resistance but they have not been able to sustain the higher levels as seen from the long wick on the day’s candlestick.

Aggressive buying at lower levels and selling at higher levels suggest the XLM/USD pair may remain range-bound for a few more days.

This view of a consolidation will invalidate if the bulls push and sustain the price above $0.35. Such a move will indicate the bulls have made a strong comeback. If they can push the price above $0.409, a rally to $0.50 is possible.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

DeFi sector growth pushes Reserve Rights, 0x and Kyber Network higher

New features that address high gas fees and interoperability between DeFi platforms could draw investors' attention to Reserve Rights, 0x, and Kyber Network in the next few weeks.

Bitcoin (BTC) has bounced back above the $32,000 level today, but Guggenheim chief investment officer Scott Minerd believes that the current institutional demand is not sufficient to keep the price above $30,000 for long. Despite this view, Minerd continues to believe that the current downturn does not alter the long-term bullish story of Bitcoin.

Crypto market data daily view. Source: Coin360

While several institutional investors are turning positive on Bitcoin as a store of value, BlackRock CEO Larry Fink does not seem impressed. Fink pointed out the volatility and called Bitcoin “a very small market” that is affected by small-dollar investments. Although Fink said that “some form of a digitized currency is going to play a bigger role in the future,” he was unsure if it would be Bitcoin.

A cryptocurrency that has a strong use case and can keep up with the ever-growing demands of crypto users may have good future prospects. The tokens selected today are strong contenders that fill each of these criteria.

RSR/USD

The Reserve Rights (RSR) protocol aims to reach the unbanked, help people transact, and preserve their wealth against the devaluation of a currency by using a stablecoin. This is a strong use case, especially in countries that suffer from the clutch of hyperinflation.

The team is currently mainly operating in Venezuela and Argentina, where the local fiat currencies have rapidly lost their purchasing power. Initially, the team wants to concentrate on streamlining the process. Various incentive measures for growth are planned for the later part of the year.

In a recent AMA, Reserve co-founder Nevin Freeman said the protocol aims to do a Mainnet launch in 2021, but refrained from putting a timeline to it. The protocol wants to expand their team to speed up the process and they are on the lookout for new engineers. The mainnet’s launch may also open arbitrage opportunities for RSR token holders.

The team is also in discussion with PayPal about allowing users to cash out using the platform. Reserve Rights expects the results of the deliberation in the first quarter of this year.

RSR corrected from an intraday high at $0.04941 on Jan. 18 to a low at $0.03086 on Jan. 27, a fall of 37% in the past ten days. The price has currently rebounded off the breakout level of $0.030, which suggests the previous resistance has flipped to support.

RSR/USDT daily chart. Source: TradingView

If the bulls can push the price above the 20-day exponential moving average ($0.036), a move to $0.042 and then a retest of $0.04977 is possible. A breakout of this resistance will resume the uptrend with the next target objective at $0.065.

On the other hand, if the price turns down from the 20-day EMA, it will suggest the sentiment has turned bearish and traders are looking to sell on rallies. If the bears can sink the price below the 50-day simple moving average ($0.0297), the pair could drop to $0.025.

Such a move will indicate the bullish momentum has weakened and bears have made a comeback.

ZRX/USD

As the crypto market matures, the popularity of decentralized exchanges is on the rise and 0X (ZRX) is one of the beneficiaries. The community recently voted to upgrade the protocol to version 4, which promises several improvements to its users.

This upgrade is expected to result in gas savings of up to 70% for requests on quote and 10% for limit orders compared to the previous version. The protocol also highlights that the upgrade has made it cheaper for the users to trade on Uniswap and SushiSwap using 0x v4 rather than on their native platforms.

Users seem to be impressed with the new features and the exchange recorded a 24-hour trading volume record of $200 million recently. The latest version is also auto upgradable, allowing future changes to be incorporated easily.

ZRX has risen from an intraday low at $0.4337 on Jan. 22 to an intraday high at $0.6688 today, a 54% rally in seven days. The price is currently forming a rounding bottom pattern, which points to a possible trend reversal.

ZRX/USDT daily chart. Source: TradingView

The 20-day EMA is sloping up and the relative strength index (RSI) is in the positive territory indicating bulls are in control.

The buyers have pushed the price above the $0.6310 resistance today, signaling the resumption of the uptrend. There is a minor resistance at $0.6784 but if that level is crossed, the ZRX/USD pair could rally to $0.75 and then to $0.85.

This bullish view will invalidate if the price turns down from the current level or the overhead resistance and dips below the 20-day EMA ($0.52). Such a move will suggest that supply exceeds demand. That may result in a fall to the 50-day SMA at $0.044.

KNC/USD

The DeFi space has evolved over the past few months and a surge in transaction volumes followed. To keep up with the latest trends, Kyber Network (KNC) has announced an upgrade to its protocol. The Kyber 3.0 upgrade will transition Kyber from a single protocol to a network of specialized liquidity pools, catering to various DeFi use cases.

A new automated Dynamic Market Maker will allow permissionless liquidity contribution and enable the liquidity pool creators to adjust their pricing curves. The upgrade also attempts to reduce the damage from impermanent loss by automatically adjusting trading fees, which will be increased during periods of high volume and decreased when the volume is low.

The Kyber DAO and KNC will be upgraded to a new token contract that aims to add to the token’s governance power and create multiple streams of token utility. The upgrade is expected to be completed by the third quarter of this year.

KNC corrected from $1.492 on Jan. 21 to an intraday low at $1.145 on Jan. 27, a 23% correction in seven days. However, the price has rebounded off the 20-day EMA ($1.22) today, indicating demand at lower levels.

KNC/USDT daily chart. Source: TradingView

The upsloping moving averages and the RSI in the positive territory suggest bulls have the upper hand. If buyers can push the price above the $1.36 to $1.50 resistance zone, the KNC/USD pair will complete a double bottom pattern, which has a target objective of $2.02.

It may not be a straight dash to $2.02 because the bears are likely to defend the $1.80 resistance. If the price rebounds off $1.50, it will suggest the sentiment remains positive and that bulls are buying the dips.

Contrary to this assumption, if the price turns down from $1.36 or $1.50 and breaks below the 20-day EMA, it will indicate selling at higher levels. Such a move could keep the pair range-bound for a few more days.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Price analysis 1/27: BTC, ETH, DOT, XRP, ADA, LINK, LTC, BCH, BNB, XLM

Bitcoin's dip below $30,000 triggered a sell-off in altcoins and dip-buying traders might not have enough momentum to cause a relief rally.

Public companies have purchased about 85,000 Bitcoin (BTC) in the past year and institutional investors have pumped money into Grayscale Investments, which shows increasing institutional adoption is one of the main reasons for the recent Bitcoin rally.

However, at the moment it seems institutional investors are unlikely to chase prices higher. If the fresh inflow of money stalls or reduces drastically, it could result in a pullback in Bitcoin’s price. If that happens, short-term traders and momentum players may book profits and trigger a deeper correction. 

Daily cryptocurrency market performance. Source: Coin360

A correction will be a healthy sign because it will shake out the speculators and only the long-term HODLers will be left in the market. As the price dips, additional institutional investors may start buying at lower levels. The transfer of Bitcoin’s ownership from speculators to long-term investors will be positive in the long term.

If Bitcoin enters a deeper correction in the short term, several altcoins are likely to follow suit.

Let’s study the charts of the top-10 cryptocurrencies to determine the support levels where buyers may step in.

BTC/USD

Bitcoin broke above the 20-day exponential moving average ($33,254) on Jan. 25 but the traders used this rise to sell, which pushed the price down to the $30,450 support on Jan. 26. The bulls purchased this dip but could not push the price above the 20-day EMA.

BTC/USDT daily chart. Source: TradingView

The BTC/USD pair has resumed its correction today, which shows the bulls are not able to absorb the supply. The downsloping 20-day EMA and the relative strength index (RSI) in the negative zone suggest bears are in control.

If the bears can sink and sustain the price below the 50-day simple moving average ($29,407), the pair will complete a bearish descending triangle pattern. This could result in a drop to the 50% Fibonacci retracement level at 25,897.42 and then to the 61.8% retracement level at $22,106.73.

This bearish view will invalidate if the price rebounds off the current level and breaks above the downtrend line. If that happens, the pair may rally to $40,000 and then to $41,959.63.

ETH/USD

Ether’s (ETH) inability to sustain above $1,400 on Jan. 25 shows the bears were booking profits at higher levels. The bulls again attempted to regroup on Jan. 26 but the altcoin has turned down today, which suggests traders may be closing their long positions.

ETH/USDT daily chart. Source: TradingView

The negative divergence on the RSI shows the momentum has weakened. If the bears can pull the price below the 20-day EMA ($1,211), a retest of the uptrend line is likely. This is an important support to watch out for because a break below it will signal a possible trend change. The next support on the downside is the 50-day SMA ($928).

On the other hand, if the bulls can sustain the current rebound, it will suggest that the bulls are buying on dips. If the bulls can push the ETH/USD pair above the $1,400 to $1,473.096 resistance zone, the uptrend could resume with the next target objective at $1,675.

DOT/USD

Polkadot (DOT) turned down from the overhead resistance on Jan. 25 and dropped to the $14.7259 support today. The bulls are likely to defend this support aggressively.

DOT/USDT daily chart. Source: TradingView

A strong rebound off $14.7259 will suggest traders are accumulating on dips. That could keep the DOT/USD pair range-bound between $14.7259 and $19.40 for a few more days. The gradually rising 20-day EMA and the RSI in the positive territory suggest the bulls have a minor advantage.

On the contrary, if the bears sink the price below $14.7259, the decline may extend to the 50% Fibonacci retracement level at $13.2821 and then to the 61.8% retracement at $11.8383. A deeper correction will suggest the uptrend has lost momentum and that may result in a few days of consolidation before the next trending move starts.

XRP/USD

After defending the 20-day EMA ($0.28) for the past few days, the bears are currently attempting to sink XRP below the $0.245 support. The downsloping moving averages and the RSI in the negative territory suggest the path of least resistance is to the downside.

XRP/USDT daily chart. Source: TradingView

A break below $0.245 will increase the possibility for a fall to the next critical support at $0.17351. If this support also cracks, the XRP/USD pair could resume the downtrend with the next possible stop at $0.10.

On the contrary, if the pair rebounds off the current level, the bulls will again try to push the price above the downtrend line. If they manage to do that, the pair could remain range-bound between $0.245 and $0.3855 for a few more days.

ADA/USD

Cardano’s (ADA) strong recovery on Jan. 22 fizzled out at $0.3685714 on Jan. 24, suggesting traders used the rally above $0.34 to close their long positions.

ADA/USDT daily chart. Source: TradingView

The bulls are currently defending the support line of the ascending channel. A strong bounce off this level will suggest the bulls are buying on dips. The bulls will then try to push the price above the downtrend line, which will be the first indication that the correction may be over.

If the price sustains above the downtrend line, a retest of $0.3971995 could be on the cards. Conversely, if the bears sink the price below the support line, it will suggest a possible trend change that could result in a drop to the 50-day SMA ($0.23).

LINK/USD

Chainlink (LINK) is currently witnessing a correction in an uptrend. The first critical support to watch on the downside is the 20-day EMA ($20.15), which is near the breakout level at $20.1111.

LINK/USDT daily chart. Source: TradingView

A strong rebound off this support will indicate the bulls are aggressively accumulating at lower levels. They will then try to resume the uptrend by pushing the price above the recent all-time high at $25.7824.

Contrary to this assumption, if the bears sink the price below the 20-day EMA, the LINK/USD pair could drop to $17.7777. A break below this support will suggest a change in trend and may pull the price down to the 50-day SMA ($15.58).

LTC/USD

Litecoin (LTC) turned down from the 20-day EMA ($139) on Jan. 25, which suggests the bears are selling on relief rallies. The bulls purchased the dip to the 50-day SMA ($128) on Jan. 26 but could not push the price above the 20-day EMA.

LTC/USDT daily chart. Source: TradingView

Renewed selling has dragged the LTC/USD pair below the 50-day SMA today and the bears will now try to break the $120 support. If they manage to do that, the pair will complete a bearish head and shoulders pattern that may result in a fall to $100 and then to $70.

The downsloping 20-day EMA and the RSI in the negative zone suggest the path of least resistance is to the downside. This negative view will be negated if the pair rebounds off the $120 support and rises above $148.

BCH/USD

Bitcoin Cash (BCH) failed to sustain above the 20-day EMA ($443) on Jan. 25 and that could have attracted selling from the bears who have dragged the price below the 50-day SMA ($389) today.

BCH/USD daily chart. Source: TradingView

The downsloping 20-day EMA and the RSI in the negative territory suggest the path of least resistance is to the downside. A break below the $370 support could pull the price down to $353 and if that level also cracks, the next stop may be $275.

This bearish view will invalidate if the BCH/USD pair bounces off the current level or the $353 support and rises above $450.

BNB/USD

Binance Coin (BNB) could not sustain above $43.0992 on Jan. 25, indicating a lack of buyers at higher levels. The altcoin formed a Doji candlestick pattern on Jan. 25 and 26, which showed indecision among the bulls and the bears.

BNB/USDT daily chart. Source: TradingView

The sellers are attempting to gain the upper hand by sinking the price below the support line of the ascending broadening wedge pattern. If they succeed, the BNB/USD pair may drop to $35.69 and then to $30.

Contrary to this assumption, if the bulls can defend the support line, it will suggest demand at lower levels. The bulls will then again try to push the price above $43.0992. If they can manage to do that, the pair may rise to $47.2187.

The flattish 20-day EMA ($40.99) and the RSI close to the midpoint does not give a clear advantage to either the bulls or the bears.

XLM/USD

The failure of the bulls to push Stellar Lumens (XLM) above $0.282 may have attracted profit-booking from short-term traders who had purchased the dip on Jan. 22. The altcoin turned down and broke below the 20-day EMA ($0.261) on Jan. 25.

XLM/USDT daily chart. Source: TradingView

When the price fails to build up momentum above the 20-day EMA, it shows a change in sentiment. The current fall indicates the traders used the recent relief rally to lighten their positions.

The XLM/USD pair can now drop to the 50-day SMA ($0.214), which may attract some dip buying. But if the pair fails to rebound off this support with strength, the correction could deepen, and a fall to $0.19 and then to $0.15 may be on the cards.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

DeFi revival pushes Celo, Venus (XVS) and Fantom (FTM) price higher

Strong fundamentals, increasing daily active users and successful layer 2 trials are pushing DeFi tokens to outperform the broader crypto market.

A new report by CoinShares suggests Bitcoin (BTC) has garnered 97% of the total crypto inflows in 2021.

The recent correction in Bitcoin price does not seem to have deterred crypto investors as CoinShares data shows a record $1.3 billion in crypto product inflows over the past week. This suggests that investors are accumulating on the dips rather than attempting to chase higher prices.

Crypto market data daily view. Source: Coin360

Another space that has taken giant strides in the past few months has been the decentralized finance sector. While bond yields across the world are reeling near-zero levels, the attractive yield farming opportunities in DeFi and flash loans have attracted investors, boosting the total value locked to $26.1 billion on Jan. 25.

Unless the markets are gripped in panic, there are always certain sections that are in a bull phase. The tokens selected today have also outperformed the broader market in the short term.

Let’s investigate some of the fundamental reasons behind their bullish moves and pinpoint the critical levels to watch out for.

CELO/USD

Transferring money seamlessly across borders without having to pay high fees is a necessity in today’s world and Celo (CELO) aims to ease this process. The project is gradually gaining adoption as there is now $30 million worth of cUSD in circulation.

After the success of cUSD, the platform plans to launch a new stablecoin that is pegged to the euro in the next two months. Similar to its cUSD, the euro stablecoin will use a basket of crypto assets to keep the price closely pegged to the underlying asset. 

Celo’s partnership with KardiaChain, Kadena, and Paychant opens several new opportunities for its users. The community also cheered Celo’s listing on Binance exchange on Jan. 5 and the altcoin broke out strongly after listing.

Celo recently announced a rewards program and starting Jan. 25 users who maintain a certain minimum average monthly balance of cUSD will earn rewards in CELO on a first-come, first-serve basis.

Along with the products, the credibility of the project is also important for its success. On that front, Celo’s inclusion in the World Economic Forum’s Global Future Council on Cryptocurrencies may have worked as a big positive.

CELO price surged from $1.752 on Jan. 12 to an intraday high at $3.922 on Jan. 22, a gain of 123% within ten days. The token is currently forming a rounding bottom pattern that will complete on a breakout and close above $4.50.

CELO/USDT daily chart. Source: TradingView

The CELO/USD pair has started a new uptrend and has been making a series of higher highs and higher lows. This suggests a bullish sentiment and traders are buying on dips. The moving averages are sloping upward and the relative strength index (RSI) is in the overbought zone, indicating an advantage to the bulls.

The pair does not have any major resistance until it reaches $4.30 but the bears are unlikely to give up easily. They will try to stall the current up-move in the $3.60 to $3.922 zone. If they succeed, the pair could drop to the 20-day exponential moving average ($2.528) where buyers are likely to step in.

A strong rebound off the 20-day EMA will keep the uptrend intact and the bulls will then again try to push the price to $4.30. A breakout and close above the $4.30 to $4.50 resistance zone could start the next leg of the uptrend.

This bullish view will invalidate if the pair breaks below the 20-day EMA. In such a case, the pair could drop to the 50-day simple moving average ($1.95).

XVS/USD

The DeFi space continues to hold strong even as major cryptocurrencies are witnessing a sharp correction. This shows users’ confidence in DeFi and the ability of the sectors' projects to offer much better returns compared to altcoins.

Venus Protocol (XVS) is exclusively on Binance Smart Chain, therefore it did not suffer from the detrimental effects of high gas fees that negatively impacted DeFi projects in early January. This could have attracted some traders to jump over to Venus.

Decentralization is one of the key factors in crypto and Venus completed the transition on Jan. 15. The protocol will now be governed by the community, which is a welcome step in the right direction. The positives of the past few days may have resulted in its total value locked to jumping to $400 million.

XVS has risen from an intraday low at $3.945 on Jan. 18 to an intraday high at $12.90 today, a 227% rally within a short span. The momentum picked up after the bulls pushed the price above the stiff $5 to $6 overhead resistance zone on Jan. 23.

XVS/USDT daily chart. Source: TradingView

Some profit-booking was seen on Jan. 25 but the bulls purchased the dip and pushed the price above $9.89 today to resume the uptrend. Crossing into double digits seems to have ignited the bulls who have continued to buy at higher levels.

The XVS/USD pair could now rally to $15 and then to $20. However, the recent rally has pushed the RSI deep into the overbought territory, which increases the risk of a correction or consolidation.

If the price turns down from the current levels, it is likely to find support at $10. A strong rebound off this level will suggest the previous resistance has flipped to support and the bulls will then try to resume the uptrend. On the contrary, if the price breaks below $10, the correction could deepen to $8.

FTM/USD

FantomFinance (FTM) is another DeFi project that is acting as a bright spot that is leading the market higher.

Fantom recently entered into a partnership with Injective Protocol that is expected to increase adoption as users can access assets on both chains. Together both teams plan to bring new and innovative synthetic products to the market, tapping the ever-growing popularity of synthetics and decentralized derivatives trading.

This offers an opportunity for the traders to benefit from trading markets that are in a trend rather than getting stuck to a specific asset class. FTM’s recent listing on SushiSwap also seems to have been cheered by the community.

FTM has soared from an intraday low at $0.0241 on Jan. 22 to an intraday high at $0.0678 today, a 181% rally within five days. The bulls had pushed the price above the $0.05665 resistance on Jan. 24 and 25 but could not sustain the higher levels.

FTM/USDT daily chart. Source: TradingView

The bears attempted to start a correction on Jan. 25 but the bulls were in no mood to relent. They have aggressively propelled the price to a new all-time high today. However, the sharp rally of the past few days has pushed the RSI deep into the overbought territory, which could start a correction or consolidation.

If the price turns down from the current levels but rebounds off the $0.05665 support, it will suggest the previous resistance has flipped to support. The FTM/USD pair may then start the next leg of the uptrend that could reach $0.0850.

Conversely, if the bears sink the price below $0.05665, the pair could drop to $0.05 and then to $0.045. A break below this support could signal a change in trend.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Price analysis 1/25: BTC, ETH, DOT, XRP, ADA, LINK, LTC, BCH, BNB, XLM

Altcoins continue to trend higher, but Bitcoin price needs to turn $35,000 to support in order for the entire market to gain momentum.

After the recent correction, Bitcoin (BTC) will need aggressive inflows to absorb the possible selling from the short-term traders and momentum players as the price nears $40,000. In the past few months, Grayscale Investments has been one of the major entities responsible for the pickup in demand.

However, JPMorgan Chase analysts pointed out in a recent note that Grayscale inflows “appear to have peaked” on a four-week rolling average basis. Without a strong tailwind from the institutional investors, many analysts believe Bitcoin may not break above $40,000.

Daily cryptocurrency market performance. Source: Coin360

The failure to resume the uptrend does not mean Bitcoin will plunge and enter a bear market similar to the one seen in 2018. Lower levels continue to attract investments from institutions, and the latest to disclose a position in Bitcoin is Nevada-based crypto mining firm Marathon Patent Group. The company has purchased $150 million worth of Bitcoin at an average price of $31,168.

Even if Bitcoin remains range-bound for the next few days, select altcoins could continue to move toward new highs.

Let’s study the charts of the top 10 cryptocurrencies to spot the ones that are in a bull trend.

BTC/USD

Bitcoin (BTC) broke above the 20-day exponential moving average ($33,851) today, indicating accumulation at lower levels. The current up-move could rise to the downtrend line where the bulls are likely to face stiff resistance from the bears.

BTC/USDT daily chart. Source: TradingView

The flat 20-day EMA and the relative strength index (RSI) just above the midpoint suggest a balance between supply and demand.

If the price reverses direction from the downtrend line, the bears will again try to sink and sustain the BTC/USD pair below the $30,450 support. If they succeed, the pair will complete a descending triangle pattern, which has a target objective of $18,940.37.

Contrary to this assumption, if the bulls drive the price above the downtrend line, the aggressive bears who may have sold short in the past few days could cover their positions, resulting in a short squeeze. Above the downtrend line, the pair could rise to $40,000 and then to $41,959.63.

ETH/USD

Ether (ETH) surged above the $1,350 resistance on Jan. 24 and followed it up with another up-move today, hitting a new all-time high at $1,473.096. However, the long wick on today’s candlestick suggests profit-booking at higher levels.

ETH/USDT daily chart. Source: TradingView

The RSI has also formed a negative divergence, which suggests the momentum may be weakening. If the bears sink the price below the $1,350 support, the ETH/USD pair could drop to the 20-day EMA ($1,195).

A strong rebound off the 20-day EMA will indicate that the bulls are accumulating on dips. The buyers will then try to resume the uptrend. If they can push the price above $1,500, the pair could rise to $1,675.

On the contrary, if the bears sink the price below the uptrend line, the pair may drop to the next support at $840, signaling a trend change.

DOT/USD

Polkadot's DOT has formed a Doji candlestick pattern today with a long wick, which suggests the bears are attempting to stall the current up-move at $19.40. However, the rising moving averages and the RSI near the overbought territory suggests the bulls are in control.

DOT/USDT daily chart. Source: TradingView

If the bulls do not give up much ground from the current level, it will suggest the buyers are absorbing the supply, and that will increase the possibility of a breakout above $19.40. If that happens, the DOT/USD pair could resume the uptrend and rally to the next target objective at $24 and then to $30.

Contrary to this assumption, if the bears sink the price below $16.7951, the pair may drop to the 20-day EMA ($14.51). A strong rebound off this support will keep the uptrend intact, and the bulls will again attempt to resume the uptrend. On the other hand, if bears sink the price below the 20-day EMA, it will suggest a trend change.

XRP/USD

The daily trading range for XRP has shrunk over the past two days. The gradually downsloping moving averages and the RSI in the negative territory suggest a minor advantage to the bears.

XRP/USDT daily chart. Source: TradingView

The Doji candlestick pattern on Jan. 24 and today signals indecision among the bulls and the bears. If the uncertainty resolves to the downside and the bears sink the price below $0.25, the XRP/USD pair will complete a bearish descending triangle pattern that could result in a drop to $0.169.

On the contrary, if the pair rises from the current levels and breaks above the downtrend line, it could result in a rally to $0.385.

ADA/USD

Cardano's Ada continues to trade inside the ascending channel and the price has been sustaining above the $0.34 support for the past two days, which is a positive sign. This suggests the traders are not hurrying to book profits on relief rallies.

ADA/USDT daily chart. Source: TradingView

The bulls will now try to push the price to $0.3971995. A breakout and close above the $0.40 resistance could start the next leg of the up-move that could reach $0.50. The ADA/USD pair could further pick up momentum if the bulls can thrust the price above the channel.

Both moving averages are sloping up and the RSI is above 60, which suggests the bulls have the upper hand. Contrary to this assumption, if the pair turns down from the current levels and breaks below $0.34, it will suggest traders are booking profits on rallies. A break below the support line of the channel may signal a trend change.

LINK/USD

Chainlink's LINK soared to a new all-time high on Jan. 23, but the bulls have not been able to build upon the momentum since then. The altcoin formed a hanging-man candlestick pattern on Jan. 24, which suggested the bulls may be tiring out.

LINK/USDT daily chart. Source: TradingView

The negative divergence on the RSI also indicates that the bullish momentum may be weakening.

The buyers attempted to resume the up-move today but the LINK/USD pair is facing profit-booking at higher levels. If the pair breaks below $23.1612, a drop to the critical support at $20.1111 is possible.

On the other hand, if the pair turns up from the current level and rises above $26, it will suggest the bulls are back in command. The next target on the upside is $30.

LTC/USD

Litecoin (LTC) bounced off the 50-day simple moving average ($126) on Jan. 22 and broke above the 20-day EMA ($143) today, but the long wick on the candlestick suggests the bears are aggressively defending the downtrend line.

LTC/USDT daily chart. Source: TradingView

If the price turns down from the downtrend line, the bears will again try to break the $120 support. If they succeed, the LTC/USD pair will complete a bearish head-and-shoulders pattern that may pull the price down to $100 and then to $70.

Conversely, if the bulls can push the price above the downtrend line, the pair may rise to $165.9709 and then retest the $185.5821 resistance. A breakout of this level could resume the uptrend.

However, the flat 20-day EMA and the RSI just above the midpoint are not signaling a clear advantage either to the bulls or the bears. The indicators suggest the pair may consolidate for a few more days.

BCH/USD

Bitcoin Cash (BCH) is currently attempting to rise and sustain above the 20-day EMA ($454). If successful, the altcoin could rise to $539. A breakout and close above this resistance could result in a retest of $631.71.

BCH/USD daily chart. Source: TradingView

Conversely, if the bulls fail to sustain the price above the 20-day EMA, the bears may again sink the price to the support of the range at $370. A breakdown and close below $353 could pull the price down to $275.

The indicators are currently not indicating an advantage to either the bulls or the bears. The flattish 20-day EMA and the RSI near the midpoint suggest the BCH/USD pair may extend its stay inside the range for a few more days.

BNB/USD

Binance Coin (BNB) bounced off the support line of the ascending broadening wedge pattern on Jan. 22, and the bulls have pushed the price above the 20-day EMA ($41), which is a positive sign.

BNB/USDT daily chart. Source: TradingView

If the bulls can push and sustain the price above $43.0992, the BNB/USD pair could retest the all-time high at $47.2187. A breakout of this resistance could resume the uptrend, with the next target objective at $50.

The 20-day EMA is sloping up gradually and the RSI is just above the midpoint, suggesting a marginal advantage to the bulls.

This positive view will be invalidated if the pair turns down from the current levels and breaks below the support line. If that happens, the bearish pattern will complete and could result in a fall to $35.69 and then $30.

XLM/USD

Stellar's Lumens (XLM) re-entered the $0.26 to $0.325 range on Jan. 22 and has been sustaining above the 20-day EMA ($0.265) since then. However, the bulls have failed to sustain the recovery and push the price toward the $0.325 resistance, which suggests a lack of demand at higher levels.

XLM/USDT daily chart. Source: TradingView

If the XLM/USD pair fails to rise and sustain above $0.282 in the next few days, the bears may again try to sink the price below the $0.26 support. If they succeed, the pair may drop to the 50-day SMA ($0.211).

Such a move will suggest the momentum has weakened. The flattish 20-day EMA and the RSI just above the midpoint also indicate a balance between supply and demand.

If the bulls push the price above $0.282, the pair may rise to $0.30 and then to $0.325. The bears may mount a stiff resistance at this level, and if the pair turns down from $0.325, it may continue the range-bound action for a few more days.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Top 5 cryptocurrencies to watch this week: BTC, ETH, DOT, AAVE, SNX

Select altcoins are rallying to new all-time highs while Bitcoin remains pinned below $33,000.

As Bitcoin price trade sideways, traders are keeping an eye out for new purchases from institutional investors in order to gauge whether BTC's correction is over.

MicroStrategy’s recent purchase of 314 Bitcoin at an average price of $31,808 is a mild sentiment booster but it may not be enough to arrest the decline if buyers do not step in and sustain their purchases at higher levels.

A recent timezone analysis by QCP Capital divided the Asia and U.S. trading sessions into a 12-hour bracket and found that since March 2020 Bitcoin price had risen during U.S. hours due to sustained buying from institutional investors. However, this buying momentum from the U.S. has shown signs of exhaustion for the first time since Bitcoin topped out about two weeks ago.

Crypto market data daily view. Source: Coin360

While keeping an eye on institutional investor inflow is a good strategy, it's also important to monitor what is happening on the retail side.  In the past few months, retail investor volume has picked up and this is supporting equity markets across the globe.

Bitcoin may be struggling to reclaim its all-time high but during this time a handful of altcoins have rallied to new highs. This shows that retail traders are currently focusing on altcoins.

Let’s study the charts of the top-5 cryptocurrencies that could trend in the next few days.

BTC/USD

Bitcoin’s bounce off the 50-day simple moving average ($28,632) is facing resistance near the 20-day exponential moving average ($33,775). The failure to rise above the 20-day EMA is a negative sign as it shows a possible change in sentiment from buying on dips to selling in each rally.

BTC/USDT daily chart. Source: TradingView

The 20-day EMA has started to slope down and the relative strength index (RSI) has been trading below the 50 level, suggesting that the bears are trying to make a comeback. The inside day candlestick pattern on Jan. 23 and today shows indecision among the bulls and the bears.

If the uncertainty resolves to the downside, the bears will try to establish their supremacy and sink the BTC/USD pair below the 50-day SMA. If they succeed, it could result in a deeper correction to the 50% Fibonacci retracement level at $25,897.42 and then to the 61.8% retracement level at $22,106.73.

On the contrary, if the bulls thrust the price above the 20-day EMA, the pair may rise to the downtrend line, where they are again likely to face stiff resistance. If the price turns down from this level and breaks below the 20-day EMA, it will suggest the bears are selling on rallies, but if the bulls push the price above the downtrend line, it will indicate the correction may be over.

A close above the downtrend line will increase the possibility of a retest of the all-time high at $41,959.63. A break above this resistance could result in a rally to $50,000.

BTC/USDT 4-hour chart. Source: TradingView

The downsloping moving averages and the RSI in the negative zone on the 4-hour chart shows the bears have the upper hand. The price action shows a bearish descending triangle formation that will complete on a breakdown and close below $30,450. The pattern target of this setup is $18,940.37.

Contrary to this assumption, if the bulls can propel the price above the moving averages, the pair could rise to the downtrend line. This is a critical resistance to watch out for because a break above it will invalidate the bearish setup. If that happens, it could catch the aggressive bears on the wrong side, resulting in a short squeeze that could drive the price to a new all-time high.

ETH/USD

Ether (ETH) has climbed above the $1,300 overhead resistance, and the bulls are attempting to resume the up-move. The upsloping moving averages and the RSI above 61 suggest the bulls are in control.

ETH/USDT daily chart. Source: TradingView

If the price sustains above $1,300, the ETH/USD pair could retest the all-time high at $1,438.318. A breakout and close above this resistance may start the journey to the target objective at $1,675.

On the other hand, if the price turns down from the overhead resistance, the pair may drop to the 20-day EMA ($1,166). A rebound off this support will increase the possibility of the resumption of the uptrend.

However, if the next drop breaks below the uptrend line, it will indicate a possible change in trend. The next support on the downside is at the 50-day SMA ($882).

ETH/USDT 4-hour chart. Source: TradingView

The bears are currently attempting to defend the $1,350 overhead resistance. If the price turns down from the current level, it could find support at the moving averages. A bounce off this level will suggest bulls are buying on every minor dip, and this will enhance the prospects of a breakout of $1,350.

Contrary to this assumption, if the bears sink the price below the moving averages, the pair could drop to the uptrend line. A break below this support will signal a change in sentiment and may result in a deeper correction.

DOT/USD

Polkadot (DOT) is currently range-bound between the high at $19.40 and the 38.2% Fibonacci retracement level at $14.7259. A consolidation near the all-time high is a positive sign as it shows traders are not rushing to book profits.

DOT/USDT daily chart. Source: TradingView

The bears are currently defending the overhead resistance at $19.40. This could extend the stay of the DOT/USD pair inside the range for a few more days

However, the upsloping 20-day EMA ($14.11) and the RSI near the overbought territory suggest the bulls have the upper hand. If buyers can drive the price above $19.40, the next leg of the up-move could begin. The first target on the upside is $24 and then $30.

This positive view will invalidate if the pair turns down and breaks below the 20-day EMA. Such a move could open the possibility of a deeper fall to the 61.8% Fibonacci retracement level at $11.8383.

DOT/USDT 4-hour chart. Source: TradingView

The pair has turned down from the overhead resistance, which suggests the bears are unwilling to give up without a fight. The flattening 20-EMA and the RSI near the midpoint on the 4-hour chart shows a balance between supply and demand.

If the bears sink the pair below the 50-SMA, a drop to $16 and then to $14.7259 is possible. The bulls are likely to buy this dip and try to keep the price inside the range. The next trending move could start after the price breaks above $19.40 or sinks below $14.7259.

AAVE/USD

AAVE is in a strong uptrend and has been hitting new highs for the past few days, which shows traders continue to buy at every higher level. In an uptrend, the bulls buy the dips to the 20-day EMA and that was seen during the recent fall on Jan. 21.

AAVE/USDT daily chart. Source: TradingView

The current leg of the uptrend has a target objective at $263.23 and then $294.229. The wick on today’s candlestick suggests bears are attempting to stall the rally near the psychological resistance at $250.

If the price turns down from the current level, the first support is at $200 and then at the 20-day EMA at $166. The upsloping moving averages and the RSI in the overbought zone indicate bulls are in command.

The first sign of weakness will be a breakdown and close below the 20-day EMA. Such a move will suggest that supply has exceeded demand from dip buyers and that could be a sign of a trend change.

AAVE/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the price is trading inside an ascending channel. If the price dips from the current levels, it could drop to the support line of the ascending channel where buyers are likely to step in.

A break below the channel could sink the price to the 20-EMA. A strong rebound off this support will suggest that bulls continue to accumulate on dips. However, a break below the moving averages will open the doors for a deeper correction.

SNX/USD

Synthetix (SNX) witnessed a sharp correction on Jan. 21 but it quickly recovered and is currently attempting to resume the uptrend. Aggressive buying near the 50% Fibonacci retracement level at $10.744 on Jan. 22 shows demand at lower levels.

SNX/USDT daily chart. Source: TradingView

Both moving averages are sloping up and the RSI has bounced from the midpoint, indicating the path of least resistance is to the upside. If the bulls can propel the price above $17.150, the next leg of the uptrend could begin.

The next target on the upside is $20 and then $24.083. However, if the price turns down from $17.150, the SNX/USD pair may dip to the 20-day EMA ($13.68), which is likely to act as strong support.

SNX/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the bears are attempting to defend the $17 overhead resistance. If the price turns down from the current level, the pair could drop to the moving averages and then to $14. A consolidation between $14 and $17 will be a positive sign and increase the possibility of a break above $17.15.

Contrary to this assumption, if the price breaks below $14, the correction could deepen to $11.263. Such a move will suggest the bullish momentum has weakened. A break below $11.262 may pull the price down to the 61.8% Fibonacci retracement at $9.232 and then $7.880.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Price analysis 1/22: BTC, ETH, DOT, XRP, ADA, LTC, LINK, BCH, BNB, XLM

Bitcoin price has rebounded above a key trendline but resistance at higher levels may limit the recovery in altcoins.

Aggressive profit-booking sent Bitcoin (BTC) spiraling below $29,000 on  Jan. 21 but was this a sign that institutional investors dumped their positions? This is one of the main questions bothering traders because large institutional inflows primarily led the run-up to $42,000.

Cointelegraph contributor Marcel Pechman analyzed derivatives data from various exchanges, which showed professional traders might have purchased at lower levels. The fall seems to have particularly hurt the excessively leveraged traders, resulting in $460 million worth of liquidations at derivatives exchanges.

Daily cryptocurrency market performance. Source: Coin360

Data from CryptoQuant shows that Bitcoin’s biggest mining pool, F2Pool, witnessed daily outflows of 10,000 Bitcoin for three days in a row, starting Jan. 17.

Although the outflows do not mean the miner has dumped the entire quantity, it shows a possible intent to reduce a portion of the inventory. This could have attracted selling from traders, fearing a sharp fall if the miners flooded the open market with BTC.

Currently, Bitcoin is rallying back toward $34,000 but is the current rebound a dead cat bounce or a resumption of the uptrend?

Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USD

Bitcoin held the 20-day exponential moving average ($34,146) on Jan. 20, but the bulls could not push the price back into the symmetrical triangle, which shows a lack of demand at higher levels. The bears renewed their selling on Jan. 21 and broke the 20-day EMA support decisively. This is the first indication that the bullish momentum has weakened.

BTC/USDT daily chart. Source: TradingView

The BTC/USD pair has bounced off the 50-day simple moving average ($28,103) today, but the rise could face resistance at the 20-day EMA. If the pair turns down from the 20-day EMA, it will suggest the sentiment has changed from buy on dips to sell on rallies.

If the next dip breaks below the 50-day SMA, the correction could deepen to the 61.8% Fibonacci retracement level at $22,106.73. Such a move may delay the resumption of the uptrend.

Contrary to this assumption, if the bulls can propel the price above the 20-day EMA, the pair could rise to the downtrend line. A breakout of this resistance could result in a retest of the all-time high at $41,959.63.

ETH/USD

Ether (ETH) plummeted below the $1,300 support and the 20-day EMA ($1,142) on Jan. 21, but the bulls defended the uptrend line today. The buyers are currently attempting to drive the price above the $1,300 resistance.

ETH/USDT daily chart. Source: TradingView

If they succeed, the ETH/USD pair could retest the all-time high at $1,438. A breakout and close above this resistance will suggest the uptrend has resumed. The next target objective on the upside is $1,675.

However, if the price turns down from the overhead resistance, the pair could consolidate in a range for a few days before starting the next trending move. The bears will be back in the game if the pair turns down and breaks below the uptrend line.

DOT/USD

Polkadot (DOT) is currently consolidating in an uptrend. The bulls have not allowed the price to dip below the 38.2% Fibonacci retracement level at $14.7259, suggesting that the traders are not rushing to the exit as they expect the uptrend to resume.

DOT/USDT daily chart. Source: TradingView

The upsloping moving averages and the relative strength index (RSI) near the overbought zone suggest the bulls are in command. If the buyers can thrust the price above the $18 to $19.40 overhead resistance zone, the uptrend could resume. The next level to watch on the upside is $24 and then $30.

If the price turns down from the overhead resistance, the DOT/USD pair may remain range-bound for a few more days. The pair could turn negative if the bears sink and sustain the price below the 20-day EMA ($13.25).

XRP/USD

XRP slipped below the $0.25 support today, but the bears could not sustain the lower levels. The bulls purchased the dip and are currently attempting to push the price above the 20-day EMA ($0.29).

XRP/USDT daily chart. Source: TradingView

If they manage to do that, the XRP/USD pair may rise to the downtrend line, which has acted as a stiff resistance on two previous occasions. If the price once again turns down from this resistance, the bears will try to sink the pair below $0.25 and complete the descending triangle pattern. If that happens, the pair could drop to $0.169.

On the other hand, if the bulls can push the price above the downtrend line, the pair may rise to $0.385. A breakout of this resistance could start a new uptrend, but if the price turns down from this level, the pair may continue to consolidate between $0.25 and $0.385 for a few more days.

ADA/USD

Cardano (ADA) broke below the $0.34 support on Jan. 21 and the 20-day EMA ($0.30) today, but the bulls purchased at the support line of the ascending channel, which shows demand at lower levels.

ADA/USDT daily chart. Source: TradingView

The buyers are currently attempting to sustain the price above the $0.34 overhead resistance. If they succeed, a retest of $0.3971995 is likely. The upsloping moving averages and the RSI in the positive zone suggest bulls have the upper hand.

A breakout and close above $0.40 could resume the uptrend with the next target objective at $0.50. This bullish view will invalidate the price turns down and breaks below the channel. The next support on the downside is the 50-day SMA at $0.22.

LTC/USD

Litecoin (LTC) has formed a head and shoulders pattern that will complete on a breakdown and close below $120. The strong rebound off the 50-day SMA ($122.80) today suggests the bulls are defending the $120 support.

LTC/USDT daily chart. Source: TradingView

The current bounce could face selling at the downtrend line. If the price turns down from this resistance, the bears will again try to break the neckline at $120 and complete the head and shoulder pattern. If they succeed, the LTC/USD pair could drop to $100 and then to $70.

This negative view will invalidate if the bulls push the price above the downtrend line. The momentum could pick up above $160 and result in a retest of $185.5821. A breakout of this resistance may resume the uptrend.

LINK/USD

Chainlink (LINK) rebounded sharply from just below the 20-day EMA ($18.18) today, which shows the bulls are actively buying on dips. The upsloping 20-day EMA and the RSI in the positive territory suggest bulls are in command.

LINK/USDT daily chart. Source: TradingView

If the bulls can sustain the price above $22, the LINK/USD pair could retest the all-time high at $23.767. A breakout and close above this resistance may resume the uptrend, with the next target at $27 and then $30.

Contrary to this assumption, if the price turns down from the overhead resistance, a few days of consolidation is possible. The trend will turn in favor of the bears if they can sink the pair below $17.

BCH/USD

Bitcoin Cash (BCH) broke below the uptrend line on Jan. 21, and the altcoin dropped close to the 50-day SMA ($375) today. The 20-day EMA ($459) has flattened out, and the RSI near the midpoint suggests a few days of range-bound action.

BCH/USD daily chart. Source: TradingView

If the bulls push the price back above the 20-day EMA, the BCH/USD pair could rise to $539. The bears are likely to mount a strong defense at this level. If the price turns down from this resistance, the pair may remain stuck between $539 and $370 for a few days.

On the contrary, if the current bounce turns down from the 20-day EMA, the bears will again try to sink the price below the $370 support. If they succeed, the pair may correct to $275.

BNB/USD

The bulls defended the 20-day EMA ($40.82) on Jan. 20 but renewed selling on Jan. 21 sent Binance Coin (BNB) tumbling to the support line of the ascending broadening wedge pattern.

BNB/USDT daily chart. Source: TradingView

The bears tried to sink the price below the pattern today but strong buying by the bulls has pushed the price to the 20-day EMA. If the bulls can propel the price above the 20-day EMA, it will indicate accumulation at lower levels. This could result in a rally to $44 and then to $47.2187.

Contrary to this assumption, if the price turns down from the current levels and breaks below the support line, it will suggest traders are selling at the 20-day EMA, which indicates a bearish sentiment. If the 50-day SMA ($35.95) cracks, the BNB/USD pair could correct to $30 and then to $26.7273.

XLM/USD

Stellar (XLM) plunged below the $0.26 to $0.325 range on Jan. 21, indicating the balance had shifted in favor of the bears. The sellers tried to sink the price to the 50-day SMA ($0.205) today, but the buyers arrested the decline at $0.228112.

XLM/USDT daily chart. Source: TradingView

The bulls are currently attempting to push the price back inside the range. If they succeed in sustaining the price above the 20-day EMA ($0.264), it will suggest the break below the range was a bear trap.

If the bulls can sustain their buying and push the price above $0.325, the XLM/USD pair could resume the uptrend and rally to $0.40

On the other hand, if the pair again turns down and breaks below $0.26, it will suggest the sentiment has turned negative, and traders are selling on minor rallies. This could pull the price down to the 50-day SMA.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.