Price analysis 2/5: BTC, ETH, XRP, DOT, ADA, LINK, LTC, BNB, BCH, XLM
Bitcoin’s (BTC) correction from its January high has not shaken the confidence of institutional investors. According to Glassnode analysts, the number of whales holding more than 1,000 Bitcoin has increased by 200 this year.
Along with the institutions, several high profile investors have also committed money to the crypto sector. Hedge fund manager Paul Tudor Jones, former PepsiCo CEO Indra Nooyi, and American rapper LL Cool J have invested in a new venture capital crypto fund launched by Silver Lake Partners co-founder Glenn Hutchins and his associates.
The steady inflow into crypto assets suggests that investors are bullish in the long-term. ARK analyst Yassine Elmandjra believes that Bitcoin is still in the early stages of its bull phase. According to Elmandjra, if Bitcoin mimics its previous two bull runs, it could rally to about $390,000 before the current bull phase ends.
Even though Bitcoin’s price action attracts the bulk of the attention, several altcoins have been rallying higher. Let’s analyze the charts of the top-10 cryptocurrencies and determine their target objectives on the upside.
Bitcoin has been facing resistance at the $38,000 level for the past two days, but the shallow correction on Feb. 4 suggests traders are not closing their positions and are buying on any minor dip. This increases the possibility of a break above $38,000.
There is a minor resistance at $40,000, but if the bulls can drive the price above it, the BTC/USD pair could retest the all-time high at $41,959.63.
The bears are likely to defend this level aggressively but if the bulls do not give up much ground, it increases the likelihood of the resumption of the uptrend.
The next resistance on the upside is $50,000 and then $60,000. The 20-day exponential moving average ($34,625) has turned up and the relative strength index (RSI) has climbed above 61, suggesting the bulls are back in command.
However, if the price turns down from the current levels, the pair may drop to the 20-day EMA. If the pair rebounds strongly from this level, the bulls will again try to resume the uptrend.
On the other hand, if the bears sink the price below the moving averages, the pair may consolidate between $28,850 and $38,000 for a few more days.
Ether (ETH) picked up momentum after breaking out to a new all-time high on Feb. 2. There was some hesitation near the $1,675 overhead resistance but the bears could not even pull the price down to the breakout level at $1,473.096.
The shallow correction on Feb. 4 shows traders are in no mood to book profits as they anticipate the uptrend to extend further. Both moving averages are sloping up and the RSI is close to the overbought zone, indicating that the bulls are in control. The next target on the upside is $2,000.
This positive view will invalidate if the ETH/USD pair turns down and breaks below the 20-day EMA ($1,385). Such a move will suggest aggressive profit-booking at higher levels and may result in a deeper correction to the 50-day simple moving average ($1,087).
XRP rebounded off the moving averages on Feb. 2, which suggests the selling pressure has reduced and the bulls are accumulating at lower levels. However, the bulls may not get an easy ride higher as the bears will try to stall the current rally at $0.50.
If the price turns down from $0.50, the XRP/USD pair could again drop to $0.3855 and consolidate between these two levels for a few days.
However, the 20-day EMA ($0.35) has started to turn up and the RSI is in the positive territory, indicating an advantage to the bulls. If the bulls can push and sustain the price above $0.50, the pair could rise to $0.60 and then to $0.75.
Polkadot (DOT) surged and closed above the $19.40 resistance on Feb. 3, indicating the resumption of the uptrend. The bears attempted to drag the price back below $19.40 on Feb. 4 but the bulls defended the level aggressively.
The bulls have flipped $19.40 into support and this level could now act as a launchpad for the next leg of the uptrend. If the DOT/USD pair can ascend $21,7321, the next level to watch out for is $24.08 and then $30.
This bullish view will be negated if the bears sink and sustain the price below $18.50. Such a move will suggest the current breakout was a bull trap and the pair could then remain range-bound between $14.7259 and $19.40.
Cardano (ADA) has soared above the ascending channel today, which suggests a pick-up in momentum. If the bulls can sustain the price above the channel, the altcoin could extend the rally to $0.60.
However, the bears are unlikely to give up without a fight. They will try to stall the rally at the current levels and sink the ADA/USD pair back into the channel. If they succeed, it may trap the aggressive bulls and the price could dip to the 20-day EMA ($0.37).
If the pair rebounds off the 20-day EMA, it will suggest the bulls continue to buy at lower levels. On the contrary, if the bears can sink the price below the support line of the channel, it will indicate a possible change in trend.
Chainlink (LINK) rose to a new all-time high on Feb. 4 but the bulls could not hold on to the breakout. The bears tried to trap the aggressive bulls by sinking the price below the downtrend line but the buyers were unwilling to relent.
The long tail on the Feb. 4 candlestick showed the bulls continue to accumulate at lower levels. The upsloping moving averages and the RSI above 63 suggest the path of least resistance is to the upside. If the LINK/USD pair closes above $25.8532, a move to $30 is likely.
On the contrary, if the pair again closes below $25.8532, it will suggest that traders are booking profits at higher levels. A break below the 20-day EMA ($22) will be the first sign of weakness that could pull the price down to $20.1111.
The correction on Feb. 4 shows the bears tried to sink Litecoin (LTC) back below the moving averages but failed. The bulls purchased the dip to the 20-day EMA ($140), which suggests a positive sentiment.
If the buyers can now drive the price above the $159 to $166 overhead resistance zone, the LTC/USD pair could retest $185.5821. The bears may defend this level but if the bulls do not allow the price to dip back below $166, it will enhance the prospects of a rally to $200.
This bullish view will invalidate if the pair turns down from the overhead resistance and drops below the moving averages. Such a move could drag the price down to $120.
Binance Coin (BNB) resumed its up-move after breaking above $53 on Feb. 4. The bulls continued their buying today and pushed the price above the resistance line of the broadening wedge pattern, but the wick on the candlestick suggests the bears are selling at higher levels.
If the BNB/USD pair turns down from the current levels but the bulls do not give up much ground, it will indicate strength. The bulls will then again try to resume the uptrend. A breakout and close above $60 will open the doors for a possible rally to $80.
Although the indicators are positive, the RSI above 80 suggests the rally is overheated in the short-term. If the pair turns down from the current level and slips below $52, it could result in a drop to the 20-day EMA ($46).
Bitcoin Cash (BCH) is struggling to rise above the $450 to $465.02 overhead resistance zone, which suggests the bears are defending this region aggressively. However, the selling dries up at lower levels because the bears have not succeeded in sinking the price below the 50-day SMA ($414) support.
The flat 20-day EMA ($430.99) and the RSI near the midpoint does not give a clear advantage to either the bulls or the bears.
If the price rises from the current levels, the bulls will again try to propel the BCH/USD pair above $465.02. If they succeed, a rally to $515.35 and then to $539 is possible.
Conversely, if the bears sink the price below the 50-day SMA, the pair could drop to the next support at $370 and then to $353.
Stellar Lumens (XLM) has been trading between $0.325 and $0.35 for the past four days. A tight consolidation near an overhead resistance signals strength and usually results in an upside breakout.
If the bulls can push and sustain the price above $0.35, the XLM/USD pair could rally to $0.409. The bears may again offer a stiff resistance at this level, but if the bulls can bulldoze their way higher, the pair may rally to $0.50.
Contrary to this assumption, if the bears sink the price below $0.325, a drop to the 20-day EMA ($0.30) is likely. A strong bounce will suggest a bullish sentiment, but a break below it could drag the pair down to $0.26.
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.
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