Bitcoin (BTC) price is attempting to rally over the weekend, but the current bounce lacks conviction. This suggests that buyers are nervous about charging ahead of the January Consumer Price Index data release on February 14, as it could add to short-term volatility.
Although the short term is uncertain, analysts at Delphi Digital expect the US Federal Reserve to adopt an accommodative policy by the end of the year, which could be favorable for risk assets.
Another bullish projection came from Pantera Capital CEO Dan Morehead, who said that Bitcoin’s “seventh bull cycle” could have begun. Morehead highlighted that the fall from November 2021 to November 2022 lasted 376 days and that the BTC price witnessed a 77% drop, in line with the average drop of 307 days and an average drop of 73% seen during markets. previous bassists.
Analysts seem to be turning positive on Bitcoin in the long term, but the short term remains uncertain.
Let’s study the charts of Bitcoin and some altcoins to spot the critical levels to watch out for.
BTC/USDT
Bitcoin plummeted to the strong support of $21,480 on Feb. 10. The area between the 50-day simple moving average ($20,347) and $21,480 is likely to attract aggressive buying from the bulls.
The first hurdle to the upside is the 20-day exponential moving average ($22,347). It needs to be overcome for the bulls to take over again. There is a minor hurdle at $22,800, but if it is cleared, the BTC/USDT pair could retest $24,255.
The bears are expected to defend the $24.255-$25.211 zone with all their might, as if this hurdle is cleared, the pair could signal a potential trend reversal.
On the contrary, if the pair falls below the 50-day SMA, the bears will return. In that case, the pair could revisit the vital support zone between $18,000 and $16,000.
On the 4 hour chart, The bulls try to initiate a bounce from $21,480 but face selling near the 20 EMA. If the pair turns down from the current level and breaks below $21,480, the bears could strongly attack the psychological level of the $20,000.
The 20 day EMA is flattening out, and the RSI is gradually rising towards the midpoint. This indicates that near-term selling pressure may be easing.
If the buyers push the price above the 20-day EMA, the pair could rally as far as $22,800, where the bears could mount a strong defense.
MATIC/USDT
Polygon (MATIC) has only witnessed a superficial pullback in recent days, indicating that traders are not exiting their positions in a hurry and are buying on minor dips.
Bullish moving averages indicate that the bulls are in control. The negative divergence on the RSI is concerning, but a positive sign is that the bears have failed to push the price below the 20-day EMA ($1.17).
This raises the prospects of breaching the upper zone between $1.30 and $1.35.. If the bulls are successful in their endeavor, the MATIC/USDT pair could start a move higher to $1.50 and later to $1.70.
The first sign of weakness will be a breakout and close below the 20 day EMA. This would clear the way for a potential drop to $1.05.
The 4-hour chart shows that the bears are offering formidable resistance in the $1.30-$1.35 range, but a positive sign is that the buyers have not given much ground to the bears.. This suggests that the bulls anticipate a move to the upside. If they push the price above $1.35, the pair could start the next leg of the uptrend.
If the bears want to take control in the short term, they will have to sink the price below $1.20. This could increase the possibility of a drop to $1.05. There is a bit of support near $1.15, but it may not hold.
HBAR/USDT
Most of the major cryptocurrencies are pulling back on their recent rallies, but Hedera Hashgraph (HBAR) has outperformed in the short term and broken above the $0.08 overhead resistance.
The 20-day EMA ($0.07) is sloping up and the RSI is in the overbought zone, indicating that the bulls are in control. However, the long wick of the February 12 candle shows selling at higher levels.
The HBAR/USDT pair could see a tough battle near the breakout level of $0.08. If the bulls defend this level and turn it into support, the pair could start a fresh move higher towards $0.11. If this level is broken, the rally could extend to $0.15.
On the contrary, if the price falls below the breakout level, it will indicate that the bears continue to sell rallies. The pair could drop to the 20 day EMA.
The 4-hour chart sees gains near the $0.10 psychological resistance. The pair could pull back towards the 20 EMA, which is close to the breakout level. Buyers are likely to take profit. If they do, the pair could try to break above $0.10 and resume the uptrend.
Conversely, if the pair breaks below $0.08, buyers could be trapped. This could lead to liquidation of long positions and a decline to $0.07. The deep correction could delay the start of the next bullish leg.
LDO/USDT
LidoDAO (LDO) has been volatile of the past few days, but a positive sign is that the bulls have successfully defended the 20-day EMA ($2.32).. This indicates that sentiment remains positive and traders are buying dips.
Next, the buyers will try to push the price to the solid overhead resistance of $3. This level is likely to attract aggressive selling by the bears because if they allow the $3 level to be breached, the LDO/USDT pair can pick up momentum and rally towards $4. The gradually rising 20 day EMA and the RSI in the positive territory indicate that the buyers have the upper hand.
Conversely, if the price turns down and breaks below the 20-day EMA, it will suggest that the pair can range from $3 to $1.72 for a few days.
The price broke below the 50-day SMA, but the bears were unable to take advantage of this momentum and plunged the pair to the immediate support of $2.. Buyers bought the dip to $2.20 and pushed the price back above the moving averages. The pair could rally as high as $2.80 and then as high as $3.
Sellers likely have other plans. They will try to pull the pair back below the moving averages and retest the support at $2.20. If this level cracks, the pair could drop as far as $2. This move would point to possible short-term range-bound action.
BIT/USDT
While several cryptocurrencies have given back some of their recent gains, BitDAO (BIT) has managed to hold above its immediate support at the 20-day EMA (0.55).. This suggests that the bulls are not rushing to book profits.
The BIT/DAO pair is not out of the woods yet, as the long wick of the Feb 11 candle shows that the bears are selling rallies near $0.60. The bears will try again to dip and hold the price below the 20 day EMA. If they do, the pair could extend its pullback to the 50-day EMA ($0.48).
Conversely, if the pair bounces off the 20-day EMA, the bulls will once again try to reach the $0.60 resistance. A break and close above this level will signal the resumption of the uptrend. The pair could rally as high as $0.65 and then as high as $0.69.
The 4-hour chart shows that the pair is stuck between the $0.54 support and $0.60 resistance.. Both moving averages are flattening out and the RSI is near the midpoint, indicating a balance between supply and demand.
Usually, A consolidation above a crucial support is a positive sign and that increases the probability of a continuation of the bullish move.. If the bulls push the price above $0.60, the bullish move could resume.
The bears will prevail if the price falls below $0.54. This could open the doors for a potential drop to $0.50 and then $0.46.
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
