February 13, 2022 – 23:44BTC’s price action looks terrible, but investors are hoping that a bounce from the $42,000 support will complement the bullish technical analysis pattern and trigger a rally in Bitcoin and altcoins.
BTC’s price action looks terrible, but investors are hoping that a bounce from the $42,000 support will complement the bullish technical analysis pattern and trigger a rally in Bitcoin and altcoins.
Bitcoin (BTC) has given back some of its recent gains, but on-chain data source Ecoinometrics said the whales are accumulating because they believe the price is attractive from a long-term perspective.
On the downside, analyst Willy Woo believes that $33,000 is a strong bottom for Bitcoin. Popular Twitter investor Credible Crypto, citing data from PlanC, said that the chances of Bitcoin falling below $30,000 are slim.
Daily outlook of crypto market data.
Chris Kuiper, Head of Research at Fidelity Digital Assets, believes that Bitcoin’s downside risk may be minimal compared to other digital assets, but it could add up significantly if it manages to replace gold as a store of value.
Can Bitcoin and altcoins make a recovery after the recent pullback? Let’s examine the charts of the top 5 cryptocurrencies that may be of interest to investors in the short term. BTC/USDT
Bitcoin fell from the general resistance to $45,456, but a small positive is that the bulls did not allow the price to fall below the 20-day exponential moving average ($41,383).
If the price bounces back from the current level, the bulls will try to push the BTC/USDT pair above $45,456. A close above this level will complete an inverted head and shoulder formation.
The pair may then rally to $52,088, which is likely to pose a strong challenge for the bears. If the bulls price breaks above this level, the pair could start its northward march towards the formation target at $56.904.
If the price breaks out and stays below $39,600, this positive view will be rejected. Such a move could open the doors for a possible drop to $36,250.
The pair bounced back at $45,456 and fell below the moving averages. The bulls are currently trying to defend the small support at $41,688.88 but are facing stiff resistance at the moving averages.
If the price breaks down from the current level and breaks below $41,688.88, the pair could fall to $39,600. If the price bounces back from this level, the pair can stick to the range between $39,600 and $45,456 for a few days.
On the upside, a break above the moving averages and a close will be the first indication that the bulls have a slight edge. The pair can then rally to $43,920 and then to $45,456. XRP/USDT
Ripple (XRP) broke and closed above the moving averages on February 7, indicating that the downtrend may end. The bears tried to push the price below the breakout level at $0.75, but the bulls thwarted this attempt.
The price recovered from $0.75 and the bulls are trying to push the XRP/USDT pair towards the overall resistance at $1. A break above this resistance and a close could open the doors to $1.41 for a possible rally.
The moving averages are on the verge of an upward transition and the relative strength index (RSI) is in positive territory, which indicates that buyers are superior. This positive view will be invalid in a break and will close below $0.75. Such a move would indicate that the bears continue to sell in rallies.
The 4-hour chart shows bulls and bears struggling near $0.82. The bulls pushed the price above this level, but the bears stopped the rally at $0.85 and pulled the pair back below $0.82.
A small positive is that the bulls are buying declines to the 50-SMA. If the price bounces back from this support, the bulls will try to push the pair above $0.85 and challenge resistance at $0.91. Conversely, a break below the 50-SMA and a close could push the pair to $0.75. A break and close below this support could indicate the start of a deeper correction. CRO/USDT
Crypto.com’s native currency (CRO) climbed above the 50-day SMA ($0.47) on February 7, suggesting that the correction phase could end. The price rose to $0.54 on Feb. 10, when the bears formed a strong defense.
The moving averages are on the verge of an upward transition and the RSI is in the positive zone, which suggests buyers have a slight advantage. If the current recovery in the moving averages continues, it will indicate that the bulls are buying in the declines. The bulls will then try to push the price above $0.54 and continue the uptrend.
If they succeed in this, the CRO/USDT pair can rally to $0.60 and then to $0.68. Contrary to this assumption, if the price falls and breaks below the 20-day EMA, the pair could fall to $0.39.
The 4-hour chart shows the pair rising within an ascending channel pattern. The bulls tried to push the price above the channel, but the bears had other plans. They trapped the aggressive bulls and pulled the price back into the channel.
Buyers are trying to defend the 50-SMA. If the price continues above the 20-EMA, the bulls will try to push the pair back above the resistance line of the channel. This positive view will be invalid if the price falls and breaks below the support line of the channel. FTT/USDT
The FTX Token (FTT) has been variable within an expanding formation. The inability of buyers to push the price above the resistance line indicates that the bears are selling the rallies to this level.
A small positive, however, is that the bulls are buying declines in the zone between the 20-day EMA ($43.85) and the 50-day SMA ($41.50). If the price rises above the current level, buyers will make one more attempt to overcome the overall hurdle.
If they succeed in this, the FTT/USDT pair could start a new uptrend. The pair may then rally to $53.50, where the bears may pose a strong challenge again, but if this resistance is breached, the rally could extend to $65.
This bullish outlook will be invalid if the price falls and breaks below the 50-day SMA. This will indicate that the pair may extend its stay within the expansion pattern for a few more days.
The failure of the bulls to push the price above the general resistance zone of $48 to $50 may have pulled the profit booking of short-term investors. The pair broke below both moving averages and could fall to the 38.2% Fibonacci retracement levels at $41.99.
If the price rises above the current level or $41.99, it indicates that buyers are accumulating in the declines. The bulls will then try to push the price above the 50-SMA. If successful, the pair could challenge the overall resistance.
On the downside, a break below $41.99 and a close could signal the beginning of a deeper correction to a 50% pullback from $39.95. TETA/USDT
Theta Network (THETA) broke and closed above the downtrend line on February 10, indicating that the downtrend may end. In general, a rally above a hard resistance tends to retest the level of reversal and breakout.
THETA/USDT daily chart.
If the bulls manage to turn the breakout level into support, it indicates a change in buying sentiment in the declines from selling in rallies. The 20-day EMA ($3.49) has started to rise and the RSI is in positive territory, which gives buyers an advantage.
If the price breaks out of the downtrend line, the bulls will try to start a new uptrend. A break above $4.39 and a close could pull more buying, and the THETA/USDT pair could rally to $6.
This bullish outlook will be invalid if the price drops below the current level and falls below the downtrend line. Such a move suggests that a break above the downtrend line could be a bull trap.
Originally posted 2022-04-19 23:31:34.