Every beef market experiences cyclical recessions, with weaker hands selling in anticipation of the climax and a build-up of strong hands in the long run. Coinbase Pro data shows significant Bitcoin (BTC) flows this week, indicating that institutions are likely to continue buying the current decline.
Comparative Historical Analysis Whalemap recently reported that Bitcoin’s previous overall peaks in 2017 and 2019 coincided with thousands of large Bitcoin transactions valued at $ 5-7 million. However, researchers believe that “such a FOMO is invisible to BTC.”
JPMorgan strategists Joyce Chang and Amy Hu recently agreed to allocate 1% to bitcoin in multi-asset portfolios “to achieve efficiency in total risk-adjusted portfolio returns”.
With gold and the S & P500 shrinking in the short term, investors looking to protect their portfolios may be looking for alternatives such as cryptocurrencies that could limit bitcoin’s downside.
While the data shows the downside is limited, let’s break down the charts of the top 10 cryptocurrencies to determine where buyers can go.
Bitcoin / USD
It is a tug of war between bulls and bears. The Bulls attempted to resume movement on February 25, but were unable to maintain higher levels. Bitcoin reversed its trend and broke the 20-day exponential moving average ($ 48,159), indicating bearish selling at higher levels.
However, the long tail of the candlestick today shows that bears cannot keep the price below the 20 day EMA. This indicates that traders are buying on dips.
The steady 20-day EMA and the Relative Strength Index (RSI) near its midpoint indicate potential for a short-term consolidation. Support for this range could be at $ 41,959.63, just above the 50-day SMA ($ 40,914).
If the bears manage to slide below the 50 day simple moving average, the selling could go up and the pair could drop to $ 28,850.
On the contrary, if the bulls manage to push the price above $ 52,040.95, a fresh test of $ 58,341.03 may appear on the charts.
ETH / USD
Ether (ETH) failed to rise above the 20-day moving average ($ 1.686) on February 24th, indicating that the bears are protecting this level. The largest cryptocurrency switched south on February 25 and slid to the 50-day simple moving average ($ 1,498).
Despite the price dropping below the 50 day simple moving average today, the bears failed to breach the intraday low on February 23 at $ 1,350. This indicates no selling pressure at lower levels.
The bulls pushed the price away from the 50 day moving average. If they can maintain the momentum and pull the ETH / USD pair above the 20-day moving average, this may improve their chances of trying the $ 2000 again.
On the other hand, if the price falls again from the 20-day moving average, this would indicate a change in sentiment from lower buying to higher selling. If the bears breach the $ 1,350 support, the pair might drop to $ 1,000.
ADA / US Dollar
Cardano (ADA) is in a strong bullish trend and entered the top 3 cryptocurrencies by market value for the first time. On February 25th, the bulls attempted to push the price above $ 1.20 but failed. However, the bulls successfully cleared the $ 0.9817712 level as support today, indicating strong buying with each smaller drop.
Buyers pushed the price above the upper $ 1.20 resistance level, indicating a renewed trend. Altcoin can now reach the next target of $ 1.25.
Both moving averages are sloping upwards and the RSI is in the overbought zone, indicating that the bulls are in control of the market.
This bullish view becomes invalid if the ADA / USD pair fails to sustain its breakout and reversal trend, breaching below the 20-day moving average ($ 0.92).
BNB / US Dollar
The inability of the bulls to push the Binance coin (BNB) towards a downtrend line on February 24th may have sparked a fresh battle with traders taking profits. Altcoin ditched most of its profits on February 19.
If the current yield continues, the bears will try to push the price down the downward line. If they succeed, this means that the short-term correction may come to an end. Then the BNB / USD could rise to $ 300 and then $ 348.6969.
The high of the 20 day moving average ($ 192) and the RSI in positive territory indicate that the bulls have an edge. Dip below the downtrend and the 20 day moving average could invalidate this bullish scenario. Such a move could drop the price down to $ 118.