Bitcoin (BTC) gave back some of its recent gains, but on-chain data resource Ecoinometrics said whales are accumulating because they think 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 trader Credible Crypto, citing data from PlanC, said the chances of Bitcoin falling below $30,000 are low.
Fidelity Digital Assets head of research Chris Kuiper believes Bitcoin’s downside risk may be minimal compared to other digital assets, but it could rally significantly if it manages to replace gold as a reserve valuable.
Could Bitcoin and altcoins stage a recovery after the recent pullback? Let’s study the charts of the top 5 cryptocurrencies that are likely to attract the attention of investors in the short term.
Bitcoin refused broad resistance at $45,456, but a small silver lining is that the bulls didn’t allow the price to break below the 20-day exponential moving average ($41,383).
If the price rebounds from the current level, the bulls will attempt to propel the BTC/USDT pair above $45,456. A close above this level will complete a bullish inverse head and shoulders pattern.
The pair could then rally back to $52,088, where the bears are likely to mount a tall order. If the bulls push the price above this level, the pair could begin its march north towards the pattern target at $56,904.
This positive view will be negated if the price breaks and holds below $39,600. Such a move could open the doors for a possible drop to $36,250.
The pair declined from $45,456 and broke below the moving averages. The bulls are currently trying to defend the minor support at $41,688.88 but are facing strong resistance at the moving averages.
If the price declines from the current level and breaks below $41,688.88, the pair could slip to $39,600. If the price rebounds from this level, the pair could stay in the range between $39,600 and $45,456 for a few days.
On the upside, a breakout and close above the moving averages will be the first indication that the bulls have a slight advantage. The pair could then rise to $43,920 and later to $45,456.
Ripple (XRP) broke and closed above the moving averages on Feb. 7, indicating that the downtrend may be coming to an end. The bears tried to take the price back below the breakout level at $0.75, but the bulls thwarted their attempt.
The price has rebounded from $0.75 and the bulls are trying to push the XRP/USDT pair towards the overhead resistance at $1. A break and close above this resistance could open the doors for a possible rally to $1.41.
The moving averages are on the edge of a bullish crossover and the Relative Strength Index (RSI) is in the positive zone, indicating that the buyers have the upper hand. This positive view will be invalidated on a break and close below $0.75. Such a move will indicate that the bears are continuing to sell on the rallies.
The 4-hour chart shows the bulls and bears fighting near the $0.82 mark. The bulls pushed the price above this level, but the bears blocked the rally at $0.85 and took the pair back below $0.82.
A small silver lining is that the bulls are buying the lows of the 50-SMA. If the price bounces off this support, the bulls will attempt to push the pair above $0.85 and challenge the resistance at $0.91. Conversely, a breakout and close below the 50-SMA could pull the pair to $0.75. A break and close below this support could signal the start of a deeper correction.
The Crypto.com native (CRO) coin broke above the 50-day SMA ($0.47) on Feb. 7, suggesting that the corrective phase may be over. The price climbed to $0.54 on Feb. 10, where the bears are mounting a strong defense.
The moving averages are on the verge of a bullish crossover and the RSI is in positive territory, indicating that the buyers have a slight advantage. If the current bounce in the moving averages holds, it will suggest that the bulls are buying on the dips. The bulls will then attempt to push the price above $0.54 and resume the uptrend.
If they succeed, the CRO/USDT pair could hit $0.60 and then $0.68. Contrary to this assumption, if the price declines and breaks below the 20-day EMA, the pair could fall to $0.39.
The 4-hour chart shows that the pair is rising inside an ascending channel pattern. The bulls tried to push the price above the channel but the bears had other plans. They pulled the price back into the channel, trapping the aggressive bulls.
Buyers are trying to defend the 50-SMA. If the price holds above the 20-EMA, the bulls will again try to push the pair above the resistance line of the channel. This positive view will be invalidated if the price declines and drops below the channel support line.
Related: Can XRP price hit $1 after 25% gains in a week? Look at this key support level
The FTX (FTT) token has been volatile in an expanding formation. The inability of the buyers to propel the price above the resistance line indicates that the bears are selling the rallies at this level.
However, a small bright spot is that the bulls are buying the dips in the area between the 20-day EMA ($43.85) and the 50-day SMA ($41.50). If the price rebounds from the current level, buyers will once again attempt to break through the overhead hurdle.
If they succeed, the FTT/USDT pair could start a new uptrend. The pair could then rally back to $53.50 where the bears could pose a big challenge again, but if this resistance is breached, the rally could extend to $65.
This bullish view will be invalidated if the price declines and falls below the 50-day SMA. This will indicate that the pair could extend its stay inside the widening pattern for a few more days.
The failure of the bulls to push the price above the $48-50 overhead resistance zone may have attracted profit bookings from short-term traders. The pair broke below both moving averages and may drop to the 38.2% Fibonacci retracement levels at $41.99.
If the price rises from the current level or $41.99, it will suggest that buyers are piling up on the dips. The bulls will then try to push the price above the 50-SMA again. If successful, the pair could challenge air resistance.
On the downside, a breakout and close below $41.99 could signal the start of a deeper correction from the 50% retracement level at $39.95.
Theta Network (THETA) broke and closed above the downtrend line on Feb. 10, indicating that the downtrend may be coming to an end. Typically, a rally above strong resistance tends to pull back and retest the breakout level.
If the bulls are successful in turning the breakout level into support, this suggests a shift in sentiment from selling on the rallies to buying on the declines. The 20-day EMA ($3.49) has started to rise and the RSI is in positive territory, suggesting an advantage for buyers.
If the price bounces off the downtrend line, the bulls will attempt to start a new uptrend. A breakout and close above $4.39 could attract further buying and the THETA/USDT pair could climb towards $6.
This bullish view will be invalidated if the price declines from the current level and drops below the downtrend line. Such a move will suggest that the break above the downtrend line could have been a bullish trap.
The pair rose inside an ascending channel pattern. The bulls tried to push the price above the resistance line of the channel but the bears did not give in. This may have led to profit booking by the short-term bears, pulling the price towards the support line.
The price has bounced off the support line three times, therefore, the bulls will try to defend it again. If the price bounces off the level and breaks above the downtrend line, this will signal the resumption of the uptrend.
Alternatively, a breakout and close below the channel support line could signal a deeper correction to $3.20.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.