Bitcoin and altcoins surprised investors with a strong bullish breakout today, signaling a possible short-term trend change.
Bitcoin (BTC) spiked above $40,000 on Feb. 28 despite the S&P 500 remaining weak. This suggests that the correlation between Bitcoin and the US stock markets may be showing the first signs of decoupling. If the bulls sustain the price above $38,500 until the end of the day, Bitcoin would avoid four consecutive months of decline.
The volatility of the last few days does not seem to have weakened the resolve of long-term investors who plan to hold onto their positions. Data from on-chain analytics firm Glassnode showed that the amount of Bitcoin supply last moved between three and five years ago ballooned to more than 2.8 million Bitcoin, which is a four-year high.
Curiously, An experiment conducted by Portuguese software developer Tiago Vasconcelos to develop an AI trading bot for Bitcoin resulted in the bot concluding that “the best move is to buy as soon as possible and never sell.”
Could the bulls keep the momentum going and push Bitcoin towards the next overhead resistance? Will altcoins join the party too? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
BTC/USDT
Bitcoin turned down from the 50-day SMA ($40,261) on Feb. 26, but the bears were unable to break the price below $37,000. The price rallied strongly today and the bulls cleared the general hurdle at the 50-day SMA.
If the bulls sustain the price above the 50-day SMA, the BTC/USDT pair could start its journey north towards the resistance line of the channel. The bears are expected to mount a strong defense at this level. The bulls will have to push the pair above the channel to signal that the correction may be over.
The 20-day exponential moving average ($39.813) is flattening out and the RSI has risen just above the midpoint. This indicates that the bulls are attempting a strong comeback.
This positive view will be invalidated in the short term if the price does not sustain above the moving averages. The pair could fall back to the support line of the channel.
ETH/USDT
Ether (ETH) turned down from the 50-day SMA ($2,865) and dipped to the support line of the triangle, indicating that the higher levels continue to attract selling from the bears.
The price has bounced off the support line of the triangle, but the bulls will need to push and hold the ETH/USDT pair above the 50-day SMA to signal a possible short-term trend change. If that happens, the pair could rally to the resistance line of the triangle.
Conversely, if the price breaks below the moving averages, it will suggest that the bears continue to sell at higher levels. That will increase the chance of a break below the triangle. A close below the triangle could open the doors for a possible retest at $2,300.
BNB/USDT
Binance Coin (BNB) turned down from the 20-day EMA ($385) on Feb. 26, but the price rebounded sharply from the strong support of $350 on Feb. 28. This indicates that the price is trapped between these two levels.
Both moving averages are sloping down and the RSI is just below the midpoint, which indicates that the bears have a slight edge. If the price turns down from the 20-day EMA, the possibility of a break below $350 increases. If that happens, the BNB/USDT pair could drop to the $330-$320 support zone.
Conversely, if the price turns up from the current level and breaks above the moving averages, it will indicate that the bulls are trying to make a comeback. The pair could rally to $445.
XRP/USDT
Ripple (XRP) turned down from the downtrend line on Feb 26, which indicates that the bears are vigorously defending this resistance. A minor positive is that the bulls are defending support at the 50-day SMA ($0.72).
If the price sustains above $0.75, the bulls will again try to push and hold the XRP/USDT pair above the downtrend line. If they are successful, it could pave the way for a potential rally to $0.91.
Alternatively, if the price turns down from the current level, the bears will try to push the pair below $0.68. If that happens, the pair could retest the intraday low of Feb. 24 at $0.62. The flat moving averages and the RSI just above the midpoint do not give a clear advantage to either the bulls or the bears.
ADA/USDT
The bulls have been holding Cardano (ADA) above $0.82 for the past few days, but are struggling to push the price to the $1 breakout level. This indicates diminishing demand at higher levels.
The longer the price stays below the moving averages, the greater the chance of a retest of the recent intraday low of $0.74. If this support breaks, the downtrend could resume and the ADA/USDT pair could drop to $0.68.
Contrary to this assumption, if the price rises above $1, it will suggest that the markets have rejected the lower levels. The pair could then rally to the resistance line of the descending channel. The bulls will have to push and hold the price above the channel to signal that the downtrend may be over.
SOL/USDT
Solana (SOL) has been sandwiched between the 20-day EMA ($94) and the strong support at $81, but this tight range trading is unlikely to continue for long.
The RSI is showing signs of forming a positive divergence, indicating that the bearish momentum may be slowing. If the bulls push and sustain the price above the 20-day EMA, the SOL/USDT pair could rally to the resistance line of the descending channel.
A breakout and close above the channel will be the first indication that the bears may be losing control.. The pair could then rally to overhead resistance at $122. This positive view will be invalidated on a break and close below $81.
AVAX/USDT
Avalanche (AVAX) has been oscillating close to the moving averages for the past three days. Although the bulls pushed the price above the moving averages on Feb 25, they could not sustain the higher levels. The strong selling brought the price back below the moving averages on February 27.
The bulls are currently trying to keep the price above the moving averages. If they can do that, The AVAX/USDT pair could rally to the downtrend line of the descending channel. This level could act as a strong resistance, but if the bulls break above it, the pair will signal that the downtrend may be over.
Contrary to this assumption, if the price turns down from the current level or overhead resistance, it will suggest that the bears continue to sell on rallies. The bears could gain strength if the price breaks below $64.
MOON/USDT
Terra LUNA token turned down from $80 but the bulls successfully defended the immediate support at $70. This indicates that traders are accumulating on every minor dip.
Buying gathered momentum today and the bulls pushed the price above the overhead resistance at $70. The rising 20-day EMA ($62) and the RSI in the overbought territory indicate that the bulls are in control.
The LUNA/USDT pair could now rally to $90, where the bears can once again mount a strong resistance. A breakout and close above this level could propel the pair to the all-time high of $103.
Conversely, if the price turns below $90, the pair could drop back to $70 and consolidate between these two levels for a few days.
DOGE/USDT
Dogecoin (DOGE) has been struggling to rebound from the strong support at $0.12, indicating a lack of urgency among the bulls to buy higher levels.
The longer the price clings to the strong support at $0.12 without a strong bounce, the greater the chance of a breakout. If the bears sink the price below $0.12, the DOGE/USDT pair could retest the psychological support at $0.10.
This is an important level for the bulls to defend because if it breaks down, the selling could intensify further and the pair could slide to $0.06. The first sign of strength will be a breakout and a close above the 50-day SMA ($0.14). That could result in a rally to $0.17.
DOT/USDT
The Polkadot (DOT) recovery stalled at the downtrend line, indicating that sentiment remains negative and traders are selling on rallies at strong resistance levels.
The price could remain stuck between the downtrend line and $14 for the next few days. If the bears sink the price below $14, the DOT/USDT pair could resume its downtrend and drop to the strong support at $10.
The buyers will have to push and hold the price above the downtrend line to signal that the bears may be losing control. Afterwards, the pair could rally to the overhead resistance at $23, where the bears can mount a strong defense.
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