Bitcoin price closed the week near strong overhead resistance. BTC’s correction to the $25,000 level could lead to dips for these 4 altcoins.
Bull phase expected to begin
The Dow Jones Industrial Average fell for the third week in a row. After Bitcoin’s sharp rally from the bottoms, analysts remain divided about Bitcoin’s next move. Some traders believe that the current Bitcoin rally will return once again, while others expect the momentum to continue and start a new bull phase.
Presumably, Bitcoin and a few other cryptocurrencies will continue to rally until the bears move on to the big height increase. A fairly large decline is likely after that. This can shake off a few weak hands and expand their position to stronger hands.
A higher low followed by a higher high could confirm the end of the bear phase and signal the start of the next bull market. Meanwhile, certain altcoins look strong and could follow Bitcoin higher in the near term.
4 altcoins that can skyrocket with bottom purchases
BTC/USDT
Bitcoin is trading below the stiff overhead resistance at $25,211. The small trading range days on February 18 and February 19 show that the bulls are in no rush to take profits and the bears are wary of shorting out at current levels. According to Kriptokoin.com data, BTC is instantly traded at $ 24,520.
The upward sloping moving averages and the relative strength index (RSI) near the overbought zone indicate that the bulls are in firm control. A tight consolidation near a firm overhead resistance usually dissolves to the upside. If buyers push the price above $25,250, the BTC/USDT pair could accelerate towards $31,000 as there is no major resistance in between.
Conversely, if the price declines from the current level, it could find support at the 20-day exponential moving average ($23,115). The bears will have to push the price below $22,800 to break the bullish momentum. The pair could then decline to $21,480, which is likely to act as a strong support.
The bears aggressively sold the rally to $25,250 but failed to push the price below the 20-EMA. This shows that sentiment remains strong and bulls see dips as a buying opportunity. Buyers are likely to try the general resistance one more time. If they manage to push the price above $25,250, the next leg of the uptrend could begin. The first sign of weakness would be a break below the 20-EMA.
FIL/USDT
Filecoin broke above the immediate resistance level of $7 on February 17. This indicates the intention of the bulls to start a new upward move. After a brief consolidation on February 18, the bulls continued their upward move on February 19. This strong rally indicates aggressive buying by the bulls. There is a minor resistance at $9.53, but it is likely to be surpassed. Instantly, FIL is trading at $8.53.
The FIL/USDT pair could target $11.39 later. This level is likely to act as a major hurdle, but the uptrend could resume if the bulls do not allow the next pullback below $9.53. The next resistance is at $16. This positive view could fade in the near term if the price drops below $7 from the current level.
The four-hour chart shows that the bears tried to stop the upward move at $8 but the bulls did not allow the price to drop below the $7 breakout level. This indicates aggressive buying on every small drop. The rally gained momentum and reached the overhead resistance at $9.53.
Sellers can put up a strong defense at this level, but the upsloping 20-EMA and RSI in the overbought zone indicate that the path of least resistance is to the upside. If the bears want to stop the altcoin rally, they will have to push the price back below $8.
OCD/USDT
While most cryptocurrencies are weakening well below their all-time high, OCD has been consistently hitting a new high for the past few days. Any being that has reached an all-time high has power.
The OKB/USDT pair slumped on February 18, showing profit above $58. In a strong uptrend, corrections usually last no more than three to five days. If the price rises above $50, the bulls will attempt to push the pair above $59. If they are successful, the pair could start its journey towards $70. If buyers turn this level to support, the pair could consolidate at $45 to $58 for a few days. The bears will have to push the altcoin price below $44 to gain the upper hand.
The four-hour chart shows that buyers bought the dip to the 20-EMA, but the recovery was not strong. Even though the moving averages are rising, the RSI is showing a negative divergence. This indicates a weakening bullish momentum. If the 20-EMA is broken, the pair could drop to $47.50 and then to $44.35.
Alternatively, if the price rallies above $55, the bulls can once again go to the all-time high of $58.84. If this level is cleared, the pair could resume its uptrend. OKB is currently trading at $52.40.
VET/USDT
VeChain successfully held the retest of the downtrend line and then moved above the overhead resistance, showing that the bears may be losing dominance. This shows that the bulls have the upper hand. If buyers turn the $0.028 level to support during the next pullback, VET/USDT could rally towards the next overhead resistance at $0.034.
Buyers are expected to hold this level strongly as a break above it could indicate the start of a new uptrend. The pair could rally to $0.05 later. This positive view may be invalidated in the near term if the price declines and breaks below the 20-day EMA ($0.025).
The four-hour chart shows that the bulls are pushing the price above the overhead resistance and the next leg of the upward move has begun. If the bulls hold the price above the breakout level, the pair could gain momentum and quickly rally to $0.032 and then to $0.034.
Conversely, if the price drops from the current level and dips below the 20-EMA, a few offensive bulls may be trapped. This could initiate a deeper correction as it gets rid of its positions. The pair could slide to $0.022 later.
RPL/USDT
Rocket Pool (RPL) has been in an uptrend for the past few days. During the pullbacks, the price did not break below the 20-day EMA ($45), indicating strong demand to buy at lower levels. The intraday candlestick pattern on February 18 and 19 shows that the bears are trying to stop the uptrend around $56 but the bulls are not willing to give up their advantage. If buyers push the price above $57, RPL/USDT could move towards the next target of $74.
On the downside, the initial support is at the $50 psychological level. If this level gives way, the pair could slide towards the 20-day EMA ($45). This is an important level for the bulls to defend because a break below it could signal a trend change in the short term.
The four-hour chart shows that the bears are trying to hold the $56 level but the bulls are not leaving much ground. This indicates that the buyers are holding their positions as they expect a break above the overhead resistance. If this happens, the altcoin could rally to $61 and then to $74.
Contrary to this assumption, if the price drops and breaks below the 20-day EMA, it will indicate that the bulls have given up and are taking profits. This could result in a deeper correction to the 50-day simple moving average followed by $38. This altcoin is instantly traded at $ 50.64.
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