Crypto Market Analysis: Bitcoin Stabilizes as Altcoins Tussle with Market Resistance
Summary:
The article explores recent movements in cryptocurrency, focusing on Bitcoin's steady trade and speculating on whether the market will shift towards buyers or sellers. It reports a decrease in the S&P 500 due to anticipated Federal restrictions, increasing chances of a pullback in Bitcoin and altcoins. Despite potential short term dips, expectations for Bitcoin's halving in April indicates a continued bullish perspective. The piece also examines Ether's downturn from market resistance, BNB's surge past resistance, and struggles for Solana, XRP, Cardano, Avalanche, Dogecoin, Chainlink, and Polkadot.
In the last few days, Bitcoin has been maintaining a stable trade, indicating a tough tug-of-war between trading bulls and bears. The question now is, will sellers dominate the market resulting in a short-term market correction, or will buyers emerge as victors?
The S&P 500 Index is experiencing a drawback in its profit booking, owing to declining expectations of an immediate rate cut by the Federal Reserve. This might suggest a risk-off sentiment in the near term, increasing the chance of a Bitcoin and select altcoins setback.
Nevertheless, this dip might not alter the bullish long-term perspective. Investors might continue to see each dip as a purchase opportunity due to the upcoming Bitcoin halving in April, historically associated with a bullish event.
The primary hurdle for Bitcoin appears to be maintaining over $52,000, implying fierce resistance from bearish traders. If the price falls under $50,000, short-term traders might cash in their profits, leading to a further dip towards the 20-day exponential moving average of $48,842.
Ether, on the other hand, dived from the psychological barrier of $3,000 on Feb. 21, indicating short-term traders are locking in profits. In a robust uptrend, such corrections typically endure one to three days.
Unlike Bitcoin and Ether, BNB made a sharp upward leap after a short correction and vaulted past the $367 resistance on Feb. 21, signifying the resurgence of an upward trend.
Moreover, Solana's rebound short-lived at $115, suggesting a low demand at top levels. XRP managed to close over the downturn line on Feb. 19 but stumbled at $0.57, meaning every minor surge is being sold off.
Meanwhile, Cardano dropped from $0.64 on Feb. 20, hinting at profit-booking activities among short-term traders, and Avalance recovered to the 20-day EMA after defending the 50-day SMA on Feb. 20.
Notably, Dogecoin recovered from the 20-day EMA on Feb. 18 but faced a solid roadblock at $0.09, indicating a bearish sentiment as traders sell during rallies. Chainlink also had a similar experience, bouncing off the 20-day EMA on Feb. 20 but falling again on Feb. 21.
Finally, Polkadot's recovery faltered near the 61.8% Fibonacci retracement level of $8.21, implying that bearish traders continue to sell off in rallies.
Published At
2/21/2024 10:06:49 PM
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