The Purpose Bitcoin (BTC) exchange-traded fund debuted on the Toronto Stock Exchange on February 18, rapidly increasing its stock trading volumes of nearly $400 million in two days. Considering that the stock market in Canada is only a small fraction of the size of the US markets, this is quite impressive. This shows that there is strong demand for Bitcoin and the trader’s preference for choosing the ETF path to create new positions.
Last week, Bitcoin reached another major milestone when it reached a critical market capitalization of $19 trillion on Feb. 19, making it the sixth asset on the list of the world’s top market capitalization companies.
The involvement of institutional investors and a market cap of over $1 trillion could alleviate manipulation and liquidity concerns raised by the U.S. Securities and Exchange Commission in previous years as Bitcoin rejected ETF applications. Daily crypto market data outlook. Source: Coin360
Cathie Wood, CEO of Ark Invest, said in a recent interview with CNBC that “the likelihood of ETFs is increasing.” Wood said that the new SEC chairman, Gary Gensler, who teaches digital currency at the Massachusetts Institute of Technology, could be more open to crypto and increase the likelihood of an approved Bitcoin ETF.
Although Bitcoin’s underlying factors continue to improve, there may be some turbulence in the near term due to the steepening of the U.S. Treasury curve.
Let’s examine the charts of the top 5 cryptocurrencies that show the probability of a resumption of the uptrend in the short term. BTC / USD
Bitcoin climbed above the resistance line of the ascending channel on February 19, and the bulls managed to keep breaking. This indicates that traders continue to buy at higher levels. BTC/USDT daily chart. Source: TradingView
The BTC/USD pair had formed a Doji candlestick pattern on February 20, indicating instability about the next directional move between bulls and bears. This uncertainty has been on the rise today and the bulls will now try to push the price up to $60,974.43.
The 20-day exponential moving average ($47,450) is rising and the relative strength index (RSI) is in overbought territory, indicating that the bulls are gaining the upper hand.
Contrary to this assumption, if the price enters the channel again, the bears will try to push the price back to the 20-day EMA. A break below the channel will indicate a possible change in the trend, and the pair can correct to the 50-day simple moving average. BTC/USDT 4-hour chart. Source: TradingView
The 4-hour chart indicates that the pair remains in a strong uptrend and the bulls are aggressively buying declines to the 20-EMA. The bears will try to stop the current uptrend along the resistance line of the ascending channel.
If successful, the pair could fall back to 20-EMA. A bounce from this support will indicate that the trend remains strong and that the bulls are not waiting for a deeper correction to buy. If the bulls can push and sustain the price above the channel, the momentum can pick up.
On the contrary, if the bears can pull the price below the 20-EMA, it will recommend booking profits by traders. If the pair breaks below the channel, the trend may weaken. AAVE / USD
AAVE has been consolidating between $392.50 and $545 over the past few days. A consolidation following a strong uptrend is a positive sign as traders are not in a hurry to exit as they expect higher levels in the future. AAVE/USDT daily chart. Source: TradingView
The 20-day EMA ($427) is stable and the RSI is slightly above 56, indicating that the range-bound action could continue for a few more days.
If buyers can push the price above $480, the AAVE/USD pair can rally to $545. A break and close above the $581,667 resistance zone at $545 could kick off the next leg of the uptrend, which could reach $697.50 and then $814.397.
On the other hand, if the bears can lower and sustain the price below $392.50, it will indicate that supply has exceeded demand. This could start a deeper correction at the 50-day SMA ($297). AAVE/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the price fluctuates between $500 and $392.50. If the bears push the price below the $392.50 support, the pair could fall to $300 and then to a 61.8% Fibonacci pullback from $267.094.
Contrary to this assumption, if the bulls can push the price above the 50-SMA, a move to $500 can be made. A break above this resistance will increase the likelihood of a move to $545 and then to $581,667. ATOM / USD
Cosmos (ATOM) is currently recovering from a strong uptrend. While the pullback was five days, the bears have yet to pull the price from $19,007 to the 38.2% Fibonacci pullback level. This indicates a lack of sellers at lower levels. ATOM/USDT daily chart. Source: TradingView
A superficial correction is usually a sign of strength and increases the likelihood of a retest of the overall resistance of $26.55. Rising moving averages and the RSI in the positive zone suggest that the bulls have the upper hand.
If the bulls can push the price above $26.55, the next leg of the uptrend may begin. The ATOM/USD pair can then rally to $32,173. If the bulls can conquer this level, the upward movement could extend to $40.
Conversely, if the pair continues to decline, a fall to the 20-day EMA ($18.19) is possible. A strong bounce from this support may keep the uptrend intact, but a break below it will suggest a deeper correction at the 61.8% pullback level from $14,347. ATOM/USDT 4-hour chart. Source: TradingView
The 4-hour chart is currently recovering inside a descending channel. Moving averages are on the verge of a downtrend and the RSI is in negative territory, pointing to a small advantage for the bears.
However, if the price rises above the support line of the descending channel, it will show accumulation at lower levels. In a break above the moving averages, a move to the resistance line of the channel is possible.
A break above the channel and a close could result in a retest of $26.55. On the other hand, a break below the channel can weaken the sensation. The pair can then decline to a 50% pullback from $16,677. NEO / USD
NEO broke out and closed above the $47,444 resistance on February 19. When the bears pulled the price below $47,444 on Feb. 20, they tried to mimic this breakout and trap the aggressive bulls. NEO/USDT daily chart. Source: TradingView
But the bulls had other plans. They bought the decline aggressively and pushed the price above psychological resistance from $50 today. This could start the next leg of the uptrend, which could reach $60.373 and then $64.95.
The upward skewering moving averages and the RSI in the overbought zone indicate that the bulls are in control.
But if the bulls fail to keep the price above $50, it will show that traders are booking profits at higher levels. A break below the 20-day EMA ($37.80) will signal a possible change in trend. NEO/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows the formation of an ascending triangle with a pattern target at $58,588. Generally, the price falls and retests the breakout level, but sometimes when the trend is strong, the price only consolidates before maintaining the upward movement.
The bulls are currently defending the $50 support. If the price rises above the current level and breaks above $54,191, the uptrend may continue.
This positive view will become invalid if the pair breaks below the current level and breaks below the triangle. Such a move could lead to a drop to $36.30. VET / USD
Following a sharp rise from $0.026714 to $0.060774, VeChain (VET) largely held its 38.2% support at $0.047763 on a closing basis, indicating accumulation at lower levels. The rising moving averages and the RSI in the overbought zone indicate that the path of least resistance is to the upside. VET/USDT daily chart. Source: TradingView