The attempt by bulls to sustain Bitcoin’s market price above $52,000 appears to have faltered, potentially signalling a shift in short-term market dynamics for both BTC and alternative cryptocurrencies.
Bitcoin (BTC) has recently remained in a consolidation phase, reflecting a fierce struggle between bullish and bearish forces. The prevailing uncertainty raises speculation regarding whether selling pressure will prevail, leading to a short-term downturn, or if buying interest will prevail. This uncertainty weighs heavily on the minds of cryptocurrency investors.
With expectations for an imminent rate cut by the Federal Reserve dwindling, profit-taking has ensued in the S&P 500 Index. This development hints at a cautious market sentiment shortly, heightening the likelihood of a retracement in Bitcoin and specific alternative cryptocurrencies.
However, the dip may not change the long-term bullish view. Investors will likely view every dip as a buying opportunity because of Bitcoin’s upcoming halving in April, which has historically been bullish.
What essential support levels may arrest the decline in Bitcoin and altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin (BTC) Market Analysis
Bitcoin struggles to sustain above $52,000, indicating that the bears fiercely defend the level.
If the price slips below $50,000, short-term traders may give up and book profits. That could pull the BTC/USDT pair to the 20-day exponential moving average ($48,842).
If the price rebounds off the 20-day EMA with force, it will suggest that the sentiment remains positive and traders are buying at lower levels. That will increase the likelihood of a rally above $52,000. The pair could then jump to $60,000.
Instead, if the price continues lower and breaks below the 20-day EMA, it will start a pullback to the 50-day simple moving average ($44,924).
Ether (ETH) Market Analysis
Ether turned down from the psychological resistance of $3,000 on Feb. 21, indicating profit booking by short-term traders.
The corrections generally last between one to three days in a strong uptrend. The crucial support on the downside is $2,717. If the price snaps back from $2,717 with force, it will indicate that every minor dip is being purchased aggressively. That will enhance the prospects of a break above $3,000. The ETH/USDT pair may then rally to $3,300.
Conversely, if bears tug the price below the 20-day EMA ($2,680), it will signal the start of a deeper correction to the 50-day SMA ($2,467).
BNB Market Analysis
BNB turned up after a brief correction and surged above the $367 resistance on Feb. 21, signalling the resumption of the uptrend.
The upsloping moving averages and the RSI in the overbought zone indicate that the bulls are in command. If buyers maintain the price above $368, the BNB/USDT pair could pick up momentum and surge toward $400.
The first support on the downside is at the 20-day EMA ($336), and the next is the 50-day SMA ($315). The bears must yank the price below the 50-day SMA to indicate a trend change.
Solana (SOL) Price Analysis
Solana’s rebound fizzled at $115, and the price turned down on Feb. 19, indicating a lack of higher-level demand.
The bears pulled the price below the neckline of the inverse head-and-shoulders pattern on Feb. 21, signalling that the bullish momentum has weakened. The 50-day SMA may act as a support, but it may not hold for long. If the support cracks, the SOL/USDT pair could start a decline to $93, which is a significant level to keep an eye on.
The first sign of strength will be a rise above the downtrend line. The pair could then attempt a rally to the overhead resistance of $126.
XRP Price Analysis
XRP closed above the downtrend line on Feb. 19, but the bulls could not clear the hurdle at $0.57. This suggests that every minor relief rally is being sold into.
The bears are trying to pull the price below the moving averages. If they succeed, the XRP/USDT pair could dip toward the strong support at $0.46. Buyers are expected to defend this level with vigour.
If the price rebounds off $0.46, the pair could climb to $0.57 and stay inside this range for some time. A break and close above $0.57 will suggest that the corrective phase may be over. The pair could then attempt a rally to $0.67.
Cardano (ADA) Price Analysis
Cardano turned down from $0.64 on Feb. 20, suggesting profit booking by the short-term traders. The price could reach the 20-day EMA ($0.57).
Buyers will have to defend the 20-day EMA aggressively to keep the move intact. If they do that, the ADA/USDT pair could rise to $0.64 and eventually to $0.68. A break and close above this resistance will signal the start of the next leg of the uptrend.
On the contrary, if the price tumbles below the 20-day EMA, it will indicate that the bullish momentum has weakened. The pair may consolidate inside an extensive range between $0.46 and $0.64.
Avalanche (AVAX) Price Analysis
The bulls defended the 50-day SMA ($36) on Feb. 20, but the bears sold the recovery to the 20-day EMA ($38.22) in Avalanche,
The 20-day EMA has flattened out, and the RSI is just below the midpoint, indicating a range-bound action in the near term. If the price breaks below the 50-day SMA, the AVAX/USDT pair may drop to $32, which will likely be a strong support. A solid rebound off the support could keep the pair between $32 and $42 for a few days.
On the upside, the bulls must drive and sustain the pair above $42 to complete the inverse head-and-shoulders pattern and gain the upper hand.
Dogecoin (DOGE) Price Analysis
Dogecoin bounced off the 20-day EMA ($0.08) on Feb. 18, but the bulls could not overcome the barrier at $0.09. This suggests a negative sentiment where the bears are selling on rallies.
If the price skids below the moving averages, the DOT/USDT pair could drop to the uptrend line. This is an essential level for the bulls to defend because if they fail to do that, the pair may start a descent to $0.07.
This negative view will be invalidated in the short term if the price rebounds off the current level and rises above $0.09. That opens the doors for a rally to the $0.10 to $0.11 resistance zone.
Chainlink (LINK) Price Analysis
Chainlink bounced off the 20-day EMA ($18.81) on Feb. 20, but the bulls could not build upon the recovery. The price turned down and slipped below the 20-day EMA on Feb. 21.
The next stop on the downside is the breakout level of $17.32. This level may witness a tough battle between the bulls and the bears. If the price rebounds off $17.32 with strength, the LINK/USDT pair may rise to the 20-day EMA and later to the overhead resistance at $20.85.
The zone between $17.32 and the 50-day SMA ($16.51) will likely act as a formidable support on the downside. A break below this zone will suggest a potential trend change in the near term.
Polkadot (DOT) Price Analysis
Polkadot’s recovery stalled near the 61.8% Fibonacci retracement level of $8.21, indicating that bears continue to sell on rallies.
The DOT/USDT pair has reached the 50-day SMA ($7.18), a significant level to watch out for. If this level gives way, it will suggest that the bulls are losing their grip. The pair could then drop to the neckline and subsequently to $6.
The flattening 20-day EMA and the RSI near the midpoint suggest a range-bound action in the near term. If the price rebounds off the neckline, the pair could reach $8.21 and stay range-bound between these two levels for some time. The Bulls will be back in the game on a close above $8.21.
