BTC and altcoins are pulling back sharply, but is the recent correction a simple low support revision, or a sign of worse things to come?
US equity markets saw their worst performance of 2023 as concerned investors dumped stocks on February 21 on fears of continued rate hikes by the US Federal Reserve.
While cryptocurrency markets also gave back some gains, the fall was relatively quiet. Dylan LeClair, a senior analyst at UTXO Management said that Bitcoin.
BTC
Tuckers down
$23,239
The S&P 500 index’s correlation has hit its lowest level since the end of 2021.
After quickly recovering from its decline, Glassnode data showed that only 21% of coins sent to exchanges by long-term holders were lost earlier this week, a big improvement from mid-January, when exchanges LTH coins shipped decreased by 56%.
The de-coupling of crypto and US equity markets is a positive sign, but traders should be cautious. If stocks decline sharply and risk aversion sets in, the crypto group may find it difficult to continue its gains.
What are the key levels that could catch an improvement in bitcoin altcoins? Let’s study the chart of the top 10 cryptocurrencies to find out.
BTC/USDT
Bitcoin suffered another rejection at $25,211 on February 21, which may have prompted short-term bulls to give up and sell profits. This could lead the price to its first major support at the 20-day exponential moving average ($23,364).
In an uptrend, buyers are looking to protect the 20-day EMA and then the 50-day simple moving average ($21,772). If the price bounces back from the 20-day EMA, it would indicate that the bulls are not waiting for a deeper correction to buy. This could increase the chances of a rally above $25,250.
Conversely, if the price falls below the 20-day EMA, it would indicate that traders are rushing to exit. This resulted in the 50-day SMA. The BTC/USDT pair may try to bounce back from this but, along the way, the 20-day EMA may present a strong challenge.
The short-term trend may tilt in favor of the bears if the price closes below the key support at $21,480.
ETH/USDT
Although the sky
Eth
Tuckers down
$1,605
Standing above the $1,680 level since February 17, the bulls could not clear the barrier above $1,743. This may have attracted selling by short-term traders.
The price declined on February 21 and sank below the breakout level of $1,680. Sellers are now looking to close this gain and price below the 50-day SMA ($1,550).
If they manage to do so, the ETH/USDT pair could sink into immediate support at $1,461. Bulls can strongly defend this level as the pair could move to $1,352 if this support gives way.
If they quickly push the price above $1,680, the bulls have a chance. Such a move would suggest aggressive buying in short dips. A break above $1,743 could initiate the next move towards $2,000.
BNB/USDT
Bell BnB even after several attempts
BNB
Tuckers down
$304
Above the $318 upper resistance in the last few days. This indicates that the bears are heavily defending the $318 level.
Bears are looking to extend their profits by sinking the price below the 50-day SMA ($306). If they succeed, the BNB/USDT pair could reach $280 towards the next major support. If the price bounces back from this level, the pair may hover between $318 and $280 for a few days.
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A flat 20-day EMA near the midpoint and RSI also indicate range-bound action in the near term. The price will have to rise above $318 for the bulls to gain the upper hand.
XRP/USDT
XRP
XRP
Tuckers down
$0.38
It is trading within a descending channel pattern. The bears thwarted the bulls’ attempts to push the price above the resistance line on February 20.
The 20-day EMA ($0.39) is flat and the RSI is near the center, indicating a balance of supply and demand. If the price breaks below the moving average, the bears will try to pull the price towards the key support at $0.36.
Alternatively, if the price breaks above the current level and breaks above the channel, it will indicate a profit to the bulls. Then the XRP/USDT pair may try to rally to $0.43 where the bears may raise a strong resistance.
ADA/USDT
Cardano
Ada
Tuckers down
$0.363
The upside header is trading in a tight range between the shoulder pattern neckline and immediate support at $0.38.
