The surge in the S&P 500 Market rally and significant investments into Bitcoin ETFs are believed to be driving BTC’s price rise above $50,300.
Bitcoin (BTC) has surpassed the psychologically significant threshold of $50,000, propelled by the strength of the US stock markets and substantial investments into spot Bitcoin exchange-traded funds (ETFs). Notably, trader Daan Crypto Trades highlighted in a recent post that net inflows into Bitcoin ETFs have remained positive for 11 consecutive days.
While many analysts anticipate the bullish trend to persist, James Van Straten, a research and data analyst at CryptoSlate, has cautioned traders about a potential correction. In a recent post, Van Straten noted that Bitcoin’s total supply in profit is approaching 95%, a level that historically indicates market tops.
While short-term risks of a pullback remain, the long-term picture looks encouraging. Crypto analysis platform Glassnode said in an X post on Feb. 10 that select on-chain indicators show signs that Bitcoin could be in the initial stages of a bull market.
Could Bitcoin extend its up move, pulling select altcoins higher? Let’s analyze the charts to find out.
S&P 500 Index (SPX) Market Analysis
The S&P 500 Index extended its rally above the psychologically important level of 5,000 last week, indicating solid demand from the bulls.
If buyers maintain the price above 5,000, the index will likely increase momentum and surge toward the next target at 5,200. Although the upsloping moving averages indicate an advantage to buyers, the negative divergence on the relative strength index (RSI) cautions that a correction could be around the corner.
The bears must pull the price below the 20-day exponential moving average (4,913) to signal a short-term local top. The index may then fall to the 50-day simple moving average (4,779).
U.S. Dollar Index (DXY) Market Analysis
The U.S. Dollar Index is consolidating after breaking out of the neckline of the inverse head-and-shoulders pattern on Feb. 2.
The upsloping 20-day EMA (103.63) and the RSI in the positive zone indicate that bulls have a slight edge. If buyers propel the price above 104.60, it will signal the resumption of the uptrend. The index may then climb to 106 and later to 107.
Contrarily, if the price skids below the neckline, it will indicate that the bears are trying to make a comeback. The bullish setup will be invalidated if the price continues lower and slumps below 102.77.
Bitcoin (BTC) Market Analysis
Bitcoin broke above the Jan. 11 high of $48,970, indicating the start of the next leg of the uptrend on Feb. 12.
A close above $48,970 will confirm the breakout and set the stage for a possible rally to $52,000. The $50,000 level may act as a minor resistance, but it will likely be crossed. A strong momentum could clear the path for a potential rise to $60,000.
Contrary to this assumption, if the BTC/USDT pair turns down and breaks back below $48,970, it will suggest that the bears are selling near $50,000. That will increase the risk of a fall to $44,700.
Ether (ETH) Price Analysis
The bears tried to stall Ether’s recovery near the 61.8% Fibonacci retracement level of $2,507 on Feb. 12, but the bulls did not relent.
The rising 20-day EMA ($2,400) and the RSI in the positive territory indicate that bulls are in command. There is a minor resistance at $2,600, but the ETH/USDT pair could reach $2,717 if that level is crossed.
The breakout level of $2,400 remains the critical support to watch for on the downside. If this level is removed, the selling could accelerate, and the pair may plummet to the strong support at $2,100. Buyers are expected to defend this level aggressively.
BNB Price Analysis
BNB broke above the downtrend line on Feb. 8, but the bulls find it challenging to drive the price to the overhead resistance at $338.
The BNB/USDT pair dipped near the moving averages on Feb. 12, but the long tail on the candlestick shows solid buying at lower levels. Buyers will try to clear the minor hurdle at $326 and shove the price to the stiff overhead resistance of $338.
On the contrary, if the price turns down sharply and breaks below the moving average, it will indicate that the bears are attempting a comeback. The pair may then slump to the strong support at $288.
XRP Price Analysis
XRP’s recovery attempt is facing selling at the 20-day EMA ($0.52), indicating that the sentiment remains negative and traders are selling on rallies.
If the price turns lower from the current level, the bears will try to sink and maintain the price below the strong support at $0.50. The XRP/USDT pair could slide to the critical support at $0.46 if they do that. Buyers are expected to defend this level with vigour.
On the upside, a break and close above the 20-day EMA will be the first sign of strength. The pair may climb to the downtrend line, which will likely be a significant hurdle for the bulls. A break above this resistance will clear the path for a rally to $0.67.
Solana (SOL) Price Analysis
The bulls propelled Solana above the neckline of the inverse H&S pattern on Feb. 10 and are trying to defend the level during the pullback on Feb. 12.
If buyers maintain the price above $107, the SOL/USDT pair will likely accelerate toward $117 and then $126. A break above this resistance will signal the resumption of the uptrend. The next target objective on the upside is $135.
Alternatively, if the price turns down sharply and breaks below the moving averages, it will indicate that the break above $107 may have been a bull trap. The pair may then fall to $93 and later to $80.
Cardano (ADA) Price Analysis
Cardano is witnessing a tough battle between the bulls and the bears near the downtrend line of the descending channel pattern.
The bulls pushed the price above the channel on Feb. 10, but they could not build upon the breakout on Feb. 11. The bears tried to take advantage of the situation and sink the price below the 50-day SMA ($0.53) on Feb. 12, but the bulls held their ground. This shows that every minor dip is being bought. Buyers will try to propel the ADA/USDT pair to $0.62 and $0.68.
Meanwhile, the bears are likely to have other plans. They will try to drag the price back below the moving averages. The pair may fall to the vital support at $0.46 if they can pull it off. Buyers are expected to guard this level because if they fail to do that, the pair may dive to $0.40.
Avalanche (AVAX) Price Analysis
Avalanche is facing selling near $42, indicating that the higher levels continue to attract sellers.
The first support on the downside is at the moving averages. If the price bounces off the 20-day EMA ($36.27), it will indicate that the sentiment remains positive and traders are viewing the dips as a buying opportunity. The AVAX/USDT pair will again try to overcome the barrier at $42. If that happens, the pair may soar to $50.
On the contrary, a slide below the moving averages will indicate that the breakout was a fake move. The pair may decline to $32, a significant level to watch out for.
Dogecoin (DOGE) Price Analysis
Dogecoin has been trading inside a symmetrical triangle for several days, indicating indecision between the bulls and the bears.
The 20-day EMA ($0.08) has flattened out, and the RSI is near the midpoint, indicating a balance between supply and demand. Buyers must thrust the price above the triangle to gain the upper hand. The DOGE/USDT pair may then attempt a rally to the $0.10 to $0.11 resistance zone.
The advantage will tilt in favour of the bears if they sink and maintain the price below the uptrend line. That may start a fall to the strong support at $0.07 and eventually to $0.06. Buyers are likely to defend this level aggressively.
