Bitcoin and select altcoins have bounced sharply off their support levels, a possible sign that investors are buying into the market’s recent decline.
Bitcoins
BTC
stripes down
$27,991
is leading the cryptocurrency markets on the road to recovery. Although the US consumer price index (CPI) print for January was slightly higher than expected, it did not dampen the enthusiasm of bullish cryptocurrency traders.
A positive reaction to seemingly negative data is a sign that sentiment is positive and investors are looking for buying opportunities.
However, some analysts are cautious due to the strengthening of the US dollar index (DXY). They believe that a sustained DXY rally could cap the cryptocurrency’s price upside.
Usually, long-term downtrends are followed by a base pattern. At this stage, several analysts remain skeptical of the rally, but the price action continues to surprise them. While data is important, short-term traders should focus more on price action and strategize accordingly.
What critical levels should you pay attention to? Let’s explore the top 10 cryptocurrency rankings to find out.
BTC/USDT
Bitcoins
BTC
stripes down
$27,991
rebounded from $21,480 on February 14 to the 20-day exponential moving average ($22,235). This shows that buyers are trying to stop the correction near the 38.2% Fibonacci retracement level at $21,228. A shallow retracement shows that traders are buying on small dips.
If the bears want to consolidate their position, they will have to aggressively defend the $22,800 level and push the price below $21,228. If they do, the BTC/USDT pair could extend the correction to the 50% retracement level at $20,294. The deeper the correction, the longer it is likely to take for the next part of the uptrend to begin.
Conversely, if the bulls go ahead and hold the price above $22,800, the pair could rise to $23,500 and then to $24,255. Bears are expected to fiercely guard this zone. If the price falls, the pair may remain in the range between $21,228 and $24,255 for a few days.
ETH/USDT
Ether
ETH
stripes down
1815 dollars
continues to trade between moving averages. A strong bounce from the 50-day simple moving average ($1483) on February 14 indicates demand for lower levels.
The flattened 20-day EMA ($1569) and RSI near the midpoint suggest a balance between supply and demand. A break above the 20-day EMA will tilt the advantage in favor of the buyers. The ETH/USDT pair may then retest the solid overhead resistance at $1,680.
On the contrary, if the price breaks from its current level and breaks below the 50-day simple moving average (SMA), it will signal an advantage for the bears. This could initiate a deeper correction to another strong support at $1352.
BNB/USDT
BNB
BNB
stripes down
338 dollars
it fell below the 50-day SMA ($293) on February 13, but the bears were unable to capitalize on this advantage. The long tail of the daily candlestick indicates strong buying near $280.
The 20-day EMA has started to decline and the RSI is in the red, indicating that the bears are slightly ahead. Another drop to $280 increases the risk of failure. Below this support, BNB/USDT could extend its decline to $260.
If the price pulls back from its current level and rises above the 20-day EMA, it would indicate solid demand for the lower levels. This could increase the prospects for a rally to the neckline of an inverted Head and Shoulders (H&S) pattern.
XRP/USDT
XRP
XRP
stripes down
$0.39
it bounced off strong support at $0.36 on February 14 to reach the 50-day SMA ($0.38). Bears are probably selling a relief rally with moving averages.
If the price drops from its current level, it will suggest that the bears are selling the rally. This could lead to a retest of support at $0.36. This is an important level for bullish protection because if broken, the XRP/USDT pair will form a head and shoulders pattern. This bearish setup has a target target of $0.29.
Alternatively, if the price moves above the moving averages, it will mean that the pair may fluctuate between $0.42 and $0.36 for some time.
ADA/USDT
ADA Cardano
ADA
stripes down
$0.349
attracted solid buying at the 50-day SMA ($0.34) as seen in the long tail of the February 13 candle. The bulls followed that up with another strong move up on February 14, which crossed the 20-day EMA ($0.38).
If the price holds above the 20-day EMA, the bulls will try to push ADA/USDT above the neckline of the head and shoulders reversal pattern. If they succeed, the pair could gain momentum and break above the immediate resistance at $0.44. The next major hurdle is $0.52, and if this is breached, the rally could extend to the $0.60 target.
