Bitcoin Takes a Pause: Detailed Analysis of Top 5 Strong Cryptocurrencies
Summary:
After an intense two-week period, Bitcoin sees a slight breather around the $52,000 limit. The article analyzes the possible effects this will have on the overall crypto market. Included are in-depth price analyses of the cryptocurrencies currently considered strong, such as Bitcoin (BTC), Ether (ETH), Uniswap (UNI), Filecoin (FIL), and The Graph (GRT).
Bitcoin (BTC) is currently taking a small break around the $52,000 mark after vigorous trading for two weeks. It appears that a market correction could be on the horizon, however, the bulls are not backing down. Factors like healthy stock markets, upcoming Bitcoin halving, and considerable influx into Bitcoin spot exchange-traded funds may prevent any significant declines. Market experts keen eyes will be on the spot Bitcoin ETFs' inflows to predict Bitcoin's future direction. Data from BitMEX Research showed the lowest outflows from Grayscale Bitcoin Trust -$44 million on February 24 - since January 11.
A positive sentiment continues to surround the market with Bitcoin remaining above $50,000 for now. While Bitcoin's consolidation proceeds, opportunities may arise for short-term traders in those altcoins currently showing strength. Whether Bitcoin will resume its upward trajectory after this pause is not certain, nor is the reaction of the altcoins - will they follow suit?
Let's view the top five cryptocurrencies currently showing strength.
Bulls continue to show dominance with Bitcoin, maintaining support around the $50,500 mark and resistance close to $53,000, which suggests it is consolidating in a narrow range. This positive indication shows the bulls are not in rush to move. The upward climb of moving averages and the relative strength index (RSI) approaching overbought territory suggest the bulls have the advantage. If a break and close above $53,000 occur, it could pave the way for a surge to $60,000.
However, the bear's window is quickly closing. To halt the bullish rally, they must rapidly pull the price below the breakout level of $48,970. Failing this, the BTC/USDT pair could drop to the fifty-day simple moving average ($45,542).
On the 4-hour chart, the moving averages appear static with the RSI slightly over the midpoint, signalling a minor upper hand for the bulls. If the price stays above the 50-SMA, the pair could rise to $53,000. This level will likely pose stiff resistance, but if overcome, a rally to $55,000 and then $60,000 could ensue. On the flip side, if the price drops from $53,000, more range-bound movement may be expected. A dip below $50,500 may sink the pair to $48,970 - a critical short-term support level. A break below this point will tip the balance in favor of the bears.
Ether (ETH) has displayed a steady ascendant trend over the last few days. Despite bearish attempts to stop upward movement around $3,000, the shallow correction confirms that the bulls remain firm. The rising 20-day exponential moving average ($2,784) and the RSI in overbought territory suggest the bulls are in control. If a close above $3,000 can be achieved, it could signal the next phase of the uptrend, pushing the ETH/USDT pair to $3,300 before moving on to $3,650.
The downside's initial support level is $2,850, followed by the 20-day EMA. If the price descends below the 20-day EMA, it implies that quick profits are being realised by the bulls. This may lead the pair to plummet to $2,717 and eventually $2,527 (50-day SMA).
The 4-hour chart shows resistance around $3,000, but encouragingly, the bulls have managed to hold the price above the 50-SMA. The 20-EMA is edging upwards, with the RSI holding positive territory, indicating the path of least resistance is upward. If the price holds above $3,000, the previously mentioned uptrend could ensue.
A break and close below the 50-SMA will indicate weakening. Failure to uphold this level will likely see the pair descend to $2,850 before descending further to $2,717.
Uniswap (UNI) made a significant leap beyond the overhead resistance of $7.79 on February 23, showing that the bulls have taken the reins.
On February 24, a long candlestick wick indicates aggressive profit taking near $12.85, triggering a correction likely to find its footing around the 50% Fibonacci retracement level of $9.91. If the price rebounds from its current position, the bulls may encourage the UNI/USDT pair towards $11.63 and then onto $12.85. If the $12.85 mark increases, a surge to $17 could be possible.
However, if the price drops below $9.91, it's likely to head to the 61.8% Fibonacci retracement level of $9.21. A break below this level generally suggests the uptrend may have ended.
The 4-hour chart reveals attempts by the bulls to keep the pair above the 20-EMA. If there's a price rise from this point, resistance is again likely at $11.63. If the drop from the $11.63 mark is not significant, it could pave the way to $12.85.
Conversely, if the price continues to decline and breaks below the 20-EMA, it shows a potential bearish comeback. The pair could then dip to $9.21 and subsequently the 50-SMA. The further the decline, the longer it will take to recommence the uptrend.
Over the past few days, bulls have struggled to propel Filecoin (FIL) above the $8.12 resistance point, but the pressure is still present.
Attempts are being made by the bulls to break past the overhead zone between $8.12 and $8.57 on February 25. Success here will indicate an uptrend resumption, and the FIL/USDT pair could reach the resistance of $10, where bears will likely defend strongly.
If the price dips and breaks below $7.70 however, this will suggest that bears are effectively defending the overhead zone and may initiate a decline to the 20-day EMA ($6.74) likely to act as potent support.
The 4-hour chart shows the pair risen from the 20-EMA, indicating positively that traders are treating the dips as a buying opportunity. If buyers manage to hold the price above the overhead resistance at $8.57, the pair could rapidly approach $9. Although the rising moving averages lean towards the bulls, the RSI indicates potential negative divergence which could indicate dwindling bullish momentum. To indicate the beginning of a correction to the 50-SMA, sellers will need to pull down the price below the 20-EMA.
The Graph (GRT) broke through the $0.23 overhead resistance on February 18, suggesting an uptrend resumption.
Bears are attempting to halt the upward movement around the $0.30 mark. A positive indication, however, is that bulls have refrained from allowing the price to fall back below the breakout level of $0.23. This suggests that dips are being converted into purchasing opportunities.
If the price remains above $0.30, it could result in a surge of the GRT/USDT pair to $0.37. However, an overbought RSI level alerts to a potential correction or consolidation in the near future. The trend will shift in favor of the bears if the price drops below the 20-day EMA ($0.22).
The pair is seen taking support from the 20-EMA on dips on the 4-hour chart, a positive sign. However, a negative divergence formed by the RSI suggests a weakening of positive momentum. If the price continues to slide and breaks below the 20-EMA, selling may intensify and the pair might plummet to $0.23. Contrastingly, if the price rebounds from the present level or the 20-EMA, it's an indicator that the uptrend remains intact. The bulls will then try to break through the $0.30 barrier, initiating the next uptrend phase.
This article does not provide any investment advice or recommendations. Investing and trading come with risks, and readers should undertake their research in their decision-making process.
Published At
2/25/2024 9:15:56 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.