Cryptocurrency Market Analysis: Bitcoin, Ether, and Altcoins Encounter Resistance, Hint at Correction Ahead
Summary:
Bitcoin faces significant resistance near the $52,000 mark, triggering some altcoin profit-taking. Experts suggest a possible short-term market correction before April's halving event. Ether struggles to surpass the $3,000 resistance, while BNB resumes its upward trend after crossing the $367 threshold. Solana and Avalanche display recovery attempts, but both face strong resistance. Meanwhile, Dogecoin battles to maintain its position above the symmetrical triangle, Chainlink experiences a pullback within its upward trend, and Polkadot tries to keep within an ascending channel pattern. All these market shifts exhibit the substantial risk associated with cryptocurrency investments.
Bitcoin (BTC) has encountered intense resistance near the $52,000 mark, suggesting a short-term drop might be on the horizon. This uncertainty led to a net outflow of about $36 million from Bitcoin-related ETFs on February 21, as reported by sources including BitMEX Research. However, the outflow halted on February 22, with approximately $251 million returning to the ETFs. Some market observers predict a minor market correction before the Bitcoin halving event in April.
The indecisiveness surrounding Bitcoin’s growth has triggered some profit-taking in a few altcoins. This correction phase is seen as beneficial for long-term market stability as it removes weaker participants from the market, allowing stronger ones to invest at lower levels. Various support levels are being observed in Bitcoin and altcoins to forecast potential market changes.
Bitcoin price patterns show that while there was a purchase surge when the price dropped to immediate support of $50,625, the $52,000 resistance could not be broken. The bears might again aim to lower the price below $50,625. If successful, there may be a drastic decrease down to the strong $48,970 support. A rebound from that level would suggest bullish sentiment and a continuation of upward trends on crossing $52,000, possibly reaching $60,000. However, bears might be plotting to pull the price below $48,970, which could lead to intensified selling and a possible drop to the 50-day SMA ($45,247).
Ether (ETH) made an attempt to scale above the $3,000 psychological resistance on February 22, but it was blocked by the bears. If the price rebounds strongly from $2,717, it could indicate that bears have converted the level into support and may try again to clear the $3,000 hurdle. However, if the price falls below $2,717, the pair ETH/USDT might tumble to the 50-day SMA ($2,497), which may postpone the inception of the next uptrend.
BNB (BNB), after overcoming the $367 resistance on February 21, has resumed its uptrend, aiming next for the $400 mark. The first support on the downside is $368 and then the 20-day EMA ($344). If these supports fail, there could be a drop to the 50-day SMA ($318), a crucial level to hold to avoid a trend shift, suggesting a trend transformation.
Solana (SOL) saw a bounce off the 50-day SMA ($99) on February 21 but couldn’t rise further above the 20-day EMA ($105). If the pair SOL/USDT dips below $80, it may fuel aggressive buying.
XRP (XRP) showed signs of uncertainty between its buyers and sellers on February 22, leading to a downward trend on February 23. A robust bounce off the support zone between $0.48 and $0.46 could indicate a range-bound trend in the coming days. Bulls will need to propel the price beyond $0.57 to initiate a positive movement.
Cardano (ADA) is staying around the 20-day EMA ($0.57) as selling pressure lingers. If the bears continue to dominate, the pair ADA/USDT might skid towards the 50-day SMA ($0.53).
Avalanche (AVAX) attempted recovery on February 22 but was repelled at the 20-day EMA ($37.90). If the pair AVAX/USDT plummets below the 50-day SMA ($35.96), it might fall to the strong support at $32.
Dogecoin (DOGE) is struggling to hold price levels above the symmetrical triangle, while below, the bears are pulling back. If the price goes beyond the $0.09 resistance, it could trigger an uptrend towards the $0.10 to $0.11 resistance zone.
Chainlink (LINK) has seen a pullback but the bears are attempting to lower the price to $17.32. A strong rebound could suggest bullish control, leading to a retest of $20.85.
Similarly, Polkadot (DOT) is attempting to remain within an ascending channel pattern, while the bears are attempting to drop the price below. A significant rebound from the current level could potentially keep DOT within the upward channel. As always, investments in cryptocurrency come with substantial risk and readers should perform their due diligence before making decisions.
Published At
2/23/2024 9:23:50 PM
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