Bitcoin Hits $50,000 Landmark; Outlook Remains Bullish Amid Cryptocurrency Market Fluctuations
Summary:
Bitcoin achieves a $50,000 milestone, fueled by a strong U.S. stock market and large inflows into Bitcoin spot ETFs. Despite potential short-term setbacks, long-term signs hint at the beginning of a Bitcoin bull market. The U.S. Dollar Index consolidates after a positive breakout while Ether faces resistance near the 61.8% Fibonacci retracement level. Other cryptocurrencies like BNB, XRP, SOL, ADA, and AVAX are also featured, with market trends reflecting a mix of bull and bear movements. The piece concludes by stressing the importance of individual research in making investment decisions due to market risks.
The digital currency, Bitcoin (BTC), has achieved the key milestone of $50,000, underpinned by robust United States stock markets and substantial inflows into Bitcoin spot exchange-traded funds (ETFs). Daan Crypto Trades, a well-known trader, noted that Bitcoin ETFs have seen eleven consecutive days of beneficial inflows. Many analysts predict this bullish trend will persist, but James Van Straten, a researcher and data analyst at CryptoSlate, warned traders about a potential adjustment. He pointed out that Bitcoin's profitable total supply is almost at 95%, typically signaling peaks.
While the odds of a short-term drawback remain, positive signs indicate a promising long-term outlook. On-chain indicators suggest Bitcoin could be at the start of a bullish market, according to a post by crypto analysis firm Glassnode on Feb. 10. Let's study the charts to understand Bitcoin's potential impact on certain altcoins.
The S&P 500 Index (SPX) continued its upward trend above the critical 5,000 level, signaling strong commitment from bulls. If the price holds above 5,000, the index likely will gather momentum and surge towards the next target at 5,200. However, despite rising moving averages favoring buyers, a negative divergence on the relative strength index (RSI) indicates a potential correction.
The US Dollar Index (DXY) is stabilizing after breaking out of an inverse head-and-shoulders pattern on Feb. 2. The 20-day EMA and the RSI are veering into positive territory, suggesting the bulls have a marginal edge. If the index surpasses 104.60, it will show the revival of the upward trend, and it may then reach 106 and subsequently 107.
Bitcoin began the next phase of its upward trend on Feb. 12, surpassing the Jan. 11 high of $48,970. If the price holds above $48,970, it could potentially rally to $52,000 and then perhaps $60,000 with a strong momentum. However, if the price drops below $48,970, it indicates that bears are selling near $50,000, increasing the threat of a decline to $44,700.
Ether (ETH) faced resistance near the 61.8% Fibonacci retracement level of $2,507 on Feb. 12, but bulls held strong. If the price surpasses $2,600, the ETH/USDT pair could potentially hit $2,717. However, a drop below $2,400 could lead to a rapid sell-off, possibly down to $2,100.
BNB (BNB) broke through the downward trend line on Feb. 8, but is struggling to push past overhead resistance at $338. If the price plunges below the moving average, it could slump to $288. Conversely, if buyers can push the price above $326, it may reach the strong overhead resistance of $338.
XRP’s (XRP) attempts at recovery meet resistance at the 20-day EMA ($0.52), implying negative sentiment and selling pressure. If the price falls below $0.50, the XRP/USDT pair could potentially drop to a critical support level at $0.46. On the flip side, if the price breaks through the 20-day EMA, it may climb to the downtrend line, acting as a major barrier.
The bulls pushed Solana (SOL) over the neckline of the inverse H&S pattern on Feb. 10, defending their position during the setback on Feb 12. If they continue to hold the price above $107, it could accelerate toward $117 and then to $126. However, a sharp decline and break below the moving averages could suggest a potential bull trap.
The battle over Cardano (ADA) continues as it vacillates near the descending channel pattern's downtrend line. Bulls were able to push the price above the channel on Feb. 10. The bears attempted to exploit this situation on Feb. 12, but the bulls defended the 50-day SMA ($0.53) vigorously. This shows every dip is being bought up. Conversely, if the price falls below the moving averages, it could lead to a significant drop to $0.46, and if that fails, to $0.40.
Lastly, Avalanche (AVAX) is facing selling pressure near $42, as higher levels beckon sellers. The AVAX/USDT pair will attempt to overcome the $42 hurdle following a bounce off the 20-day EMA ($36.27). Conversely, a fall below the moving averages could signal pretense in the breakout, leading to a drop to $32.
Note: This piece does not offer investment guidance or recommendations. Trading and investing carry risks, and readers should personally research when making decisions.
Published At
2/12/2024 9:20:29 PM
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