Bitcoin (BTC) has rallied to around $44,000, suggesting that the decline may be coming to an end. However, it is a possibility that it will not reach the ATH level anytime soon. This means that the bulls will likely face multiple hurdles along the way and price action will likely remain turbulent. The altcoin market will also try to grow its share simultaneously with the leading crypto. Current forecast futures for AVAX, SOL, XRP, DOGE, BTC and 5 altcoins remained stable at $1,835.70. We have compiled the market comments and price predictions of analysts for Kriptokoin.com readers.
What has been said about Bitcoin this week?
In a new investor note from JPMorgan analysts, Bitcoin’s bullish and bearish cycles are impeding broader institutional acceptance. According to experts, the fair value of Bitcoin is around $38,000, with four times the volatility of gold. Fair value estimates for Bitcoin climb to $50,000 if volatility drops to three times that of gold.
Wells Fargo Investment Institute, the research division of Wells Fargo Wealth and Investment Management, “Cryptocurrencies – Is it too soon or too late?” in its report. He said that the crypto market is still in the early days of adoption. “Most of the opportunities lie ahead of us, not behind us,” the report said. Can Bitcoin and altcoins prolong relief rallies or will profit bookings lower prices? To answer, let’s take a look at current analysis by technical analyst Rakesh Upadhyay.
AVAX, SOL, XRP, DOGE and BTC analysis
Bitcoin broke above the 50-day simple moving average (SMA) ($42,659) on February 7 and hit the $45,456 resistance on February 8. reached. According to the analyst, this level has proven to be a strong resistance and the price has therefore dropped.
BTC/USDT pair formed a candlestick pattern on February 8, showing indecision between the bulls and bears. However, the rising 20-day exponential moving average (EMA) ($40,751) and the RSI in the positive zone suggest the path of least resistance is up. If the bulls push the price above $45,456, the price could rally to $48,000 and then the $52,088 resistance. Contrary to this assumption, if the price drops from the current level and sinks below the 50-day SMA, the pair could drop to the 20-day EMA.
Ethereum (ETH)
Ethereum (ETH) broke above the resistance line of the channel on February 7 and closed as a sign that the downtrend might end. Although the bears defended the 50-day SMA ($3,208) on Feb. 8, they were unable to push the price back into the channel.
This indicates that the bulls are working to convert the resistance line of the channel to support. Buyers will try to push the price above the 50-day SMA once again on February 9. If they are successful, the ETH/USDT pair could start a new bullish move. Additionally, there is a minor resistance at $3,400, but if this level is surpassed, the next stop is $3,900. The ascending 20-day EMA ($2,924) and the RSI in the positive zone indicate advantage for buyers. This bullish view will be invalidated in the short term if the bears strengthen and hold the pair below the 20-day EMA.
Binance Coin (BNB)
Binance Coin (BNB) turned down from the downtrend line on February 18, showing strong resistance from the bears. The price has dropped to the 20-day EMA ($409), which is an important support to watch out for.
If the price rises from the current level, the bulls will again try to push the BNB/USDT pair above the channel’s downtrend line and the 50-day SMA ($453). If they are successful, it will suggest that the downtrend may end. BNB price could then reach the psychological level of $500. Alternatively, if the price breaks below the 20-day EMA, it indicates that the trend remains negative and higher levels are attracting selling by the bears. The pair could decline further towards $390 and later extend its decline to $357.40.
Ripple (XRP)
Ripple (XRP) reached and closed above the 50-day SMA ($0.75) on Feb. 7; this is the first indication that the downtrend may be coming to an end. Investors are making profits around $0.91 and this could result in a minor correction or consolidation.
On the technical side, the moving averages are on the verge of a bullish crossover and the RSI is in the overbought zone, indicating the path of least resistance to the upside. If the price rises from the current level or bounces back from $0.75, the bulls will try to push the XRP/USDT pair above $0.91. If successful, the upside move could reach the psychological level of $1, where the bears could pose a strong challenge again. This positive view will be invalidated if the price drops and falls below the moving averages.
Cardano (ADA)
The bulls tried to push Cardano (ADA) above the 50-day SMA ($1.23) on Feb. 8 but the bears held their ground. This pushed the price back to the 20-day EMA ($1.14). The price is now stuck between the moving averages.
The RSI is just above the midpoint and the moving averages are flat, indicating range-bound action in the short term. If buyers push and sustain the price above the 50-day SMA, the pair could rally towards the resistance line. This is the critical level to watch out for because a break and close above the channel will be the first sign that the downtrend may be coming to an end. Conversely, if the price drops from the current level and sinks below the 20-day EMA, the ADA/USDT pair could drop to $1.
Solana (SOL)
Solana (SOL) broke the $116 resistance on February 7 and closed above, but the bulls were unable to extend the relief rally any further. The bears pushed the price below $116 on February 8.
Buyers haven’t given up yet as they try to defend the 20-day EMA ($112). If the price bounces back from the current level, the bulls will try to push the SOL/USDT pair above $121.93. If they succeed, the pair may reach the resistance line. Conversely, if the bears pull the price below the 20-day EMA, the pair could drop to the bullish line. If this level is also broken, the pair could drop to $94. The flat 20-day EMA and RSI below the midpoint suggest range-bound action in the near term.
Terra (LUNA)
Terra’s charity rally in the LUNA token hit the wall at the 20-day EMA ($58). This shows that the sentiment remains negative and bears are selling on rallies to strong resistance levels.
If the price breaks and stays below $54.20, the LUNA/USDT pair could lose strength and gradually drop to the strong support at $43.44. Such a move suggests that the current upside move is a relief rally in a strong downtrend. Alternatively, if the price returns to $54.20, this will indicate that investors are not waiting for a deeper correction to buy. The bulls will then try to push the pair above the 20-day EMA. If they are successful, the pair could rally to the downtrend line of the channel.
Avalanche (AVAX)
Avalanche (AVAX) rose to hit the downtrend line on February 8, but the long wick on the day’s candlestick indicates that the bears are aggressively defending the overall resistance. Then, the AVAX bulls quickly regrouped and are attempting to push the price above the 50-day SMA ($88).
Avalanche’s (AVAX) RSI is approaching 62 from where it fell on December 21 and before that on November 30. If the buyers push the RSI above this resistance, it will show an advantage for the bulls. A break and close above the downtrend line could signal a possible change in trend. Contrary to this assumption, if the price breaks from the current level or downtrend line, the AVAX/USDT pair could find support in the region between the 20-day EMA ($77) and $75.50. The bears will have to push the price below this zone to gain the upper hand.
Polkadot (DOT)
Polkadot (DOT) tried to rise above the zone between $22.66 and the 50-day SMA ($24.05) on Feb. 8, but the bears were not in a position to give up. A minor positive is that the bulls are not allowing the price to drop below the 20-day EMA ($21.06).
On the technical side, both moving averages have flattened out and the RSI is close to the midpoint, indicating an equilibrium between supply and demand. A break and close above the 50-day SMA could turn the advantage in favor of the buyers. The DOT/USDT pair could then rally to $28, where the bears could pose a tough challenge again. Alternatively, a break and close below the 20-day EMA could signal that the pair could remain range-bound between $22.66 and $16.81 for a few days.
Dogecoin (DOGE)
Dogecoin (DOGE) broke and closed above the 50-day SMA ($0.15) on Feb. 7, but the bulls failed to develop this advantage. The bears indicated that they are not giving up yet, pushing the price below the 50-day SMA on February 8.
The 20-day EMA ($0.15) is the important level to watch on the downside. If the price bounces back from this level, the chances of a break above $0.17 increase. If this happens, the DOGE/USDT pair could rally to the stiff overhead resistance at $0.19. The slowly rising 20-day EMA and RSI in the positive zone point to a slight advantage for buyers. This positive view will be invalidated if the price drops and breaks below the 20-day EMA. The pair could decline to strong support at $0.13 later.
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