Bitcoin and selected altcoins such as ETH, OKB, ALGO and THETA may extend their upward movement after a brief correction.
After a spectacular rally in January, Wikipedia
BTC
Will go down
22,348 US dollars
It seems to breathe in February. This is a positive sign as vertical rallies are rarely sustained. A small drop will shake jittery spirits and give long-term investors an opportunity to add to their positions.
Is Bitcoin Price Going Down?
However, opinions are divided on whether Bitcoin has bottomed out. Some analysts expect the rally to reverse and dip below the November lows, while others expect markets to continue higher and disappoint traders expecting to buy lower.
Mark Yusko, founder and CEO of Morgan Creek Capital Management, said in an interview with Cointelegraph that the “crypto summer” will begin in the second quarter of this year.
He predicts that risk assets will turn bullish if the US Federal Reserve signals that it will slow or stop raising interest rates. Another potential catalyst for Bitcoin is the block reward halving in 2024.
Can Altcoins Continue Their Move While Bitcoin Consolidates Near-Term? Let’s examine the Bitcoin charts and pick altcoins that can outperform in the coming days.
BTC/USDT
Bitcoin has been steadily correcting since hitting $24,255 on February 2. This indicates profit booking for short-term traders. The price is approaching a strong support zone between $22,800 and $22,292. The 20-day exponential moving average ($22,436) is also in this zone, so buyers are expected to defend the zone with all their might.
The 20-day EMA and Relative Strength Index (RSI) in positive territory suggest that the bulls have an advantage. If the price breaks out of the support zone, the bulls will again try to push the BTC/USDT pair to $25,000. This level should act as a huge resistance.
On the downside, a break below the support zone triggers multiple stop losses and can lead to a deeper pullback. The pair may first fall to $21,480 and if this support also fails, the next stop could be the 50-day SMA ($19,572).
The four-hour chart shows that the price is trading in an ascending channel, while the RSI is forming a negative divergence. This suggests that the bullish momentum may be weakening. A break and close at the bottom of the channel could tip the short-term advantage in favor of the bears. The pair will then decline to $21,480.
Alternatively, if the price bounces off the support line of the channel, the bulls will try to break above the channel again. If they can do that, the pair can resume an uptrend.
ETH/USDT
Ether
ETH
Will go down
1567 US dollars
It has been close to the $1,680 resistance in recent days. Usually, a tight consolidation at the top resistance fades to the upside.
While the rising 20-day EMA ($1,586) suggests upside for buyers, a negative RSI divergence suggests that bulls may be losing their grip. If the bulls want to assert their dominance, they need to hold above $1,680.
If they do, the ETH/USDT pair could reach $1,800. This level will again act as resistance, but if the bulls do not break below $1,680, the rally could extend to $2,000.
Instead, if the price breaks down and falls below the 20-day EMA, the ETH/USDT pair may decline to $1,500. This is an important support level to watch as the bounce pair ranges from $1,500 to $1,680. On the other hand, if the $1,500 support is breached, the pair could reach $1,352.
The four-hour chart shows that the bears have pulled below the 20-EMA. This is the first sign that the bulls may be taking a step back. The 50-SMA is a minor support, but if it fails to hold, the pair could slide to $1,550 and then $1,500.
Conversely, if the price rises from the moving averages, the bulls will again try to push the pair above the upper resistance. If they succeed, the pair could resume an uptrend.
OKB/USDT
While most cryptocurrencies are well below all-time highs, OKB (OKB) hit a new high on February 5th. This indicates that the bulls rule.
Some traders may book profits near the overhead resistance of $44.35 as it acts as a huge resistance. This suggests that bulls should continue to buy the dips if the price declines from current levels but rebounds from the 20-day EMA ($37).
This raises the possibility of a break above $45. The OKB/USDT pair may first rise to $50 and then to $58.
If the price breaks down and falls below the 20-day EMA, it indicates that traders are rushing to exit. The pair may decline to $34 and then the 50-day SMA ($30).
