Bitcoin (BTC) price is trying to rally over the weekend, but the current bounce lacks conviction. This suggests that dip buyers are nervous about charging ahead of the January CPI data release on February 14, as that 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 later in the year and that could be favorable for risk assets.
Another bullish projection came from Pantera Capital CEO Dan Morehead, who said that Bitcoin’s “seventh bull cycle” may 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 over the past few years. previous bear markets.
Analysts seem to be turning positive on Bitcoin in the long term, but the short term remains uncertain.
Let’s study Bitcoin charts and select altcoins to spot critical levels to watch out for.
USDT/BTC
Bitcoin plummeted to the strong support of $21,480 on February 10. The zone between the 50-day simple moving average ($20,347) and $21,480 is likely to attract aggressive buying by bulls.
The first hurdle to the upside is the 20-day exponential moving average ($22,347). This needs to be crossed to suggest that the bulls are back in the driver’s seat. There is a minor hurdle at $22,800, but if scaled, the BTC/USDT pair could retest $24,255.
The bears are expected to defend the $24,255 to $25,211 area with all their might because if this hurdle is cleared, the pair could signal a possible trend reversal.
Conversely, if the price falls below the 50-day SMA, it will suggest that the bears are back in the game. The couple could then revisit the life support zone for between $18,000 and $16,000.
The 4-hour chart shows that the bulls are trying to start a bounce from $21,480 but are facing selling near the 20-day EMA. If the price turns down from the current level and breaks below $21,480, the bears can vigorously attack the psychological $20,000 level.
The 20-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 to $22,800 where the bears can 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.
The rising moving averages indicate that the bulls are in control. The negative divergence on the RSI is cause for concern, but a positive sign is that the bears have not been able to pull the price below the 20-day EMA ($1.17).
That improves the prospects for a break above 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 then $1.70.
The first sign of weakness will be a break and close below the 20 day EMA. That clears the way for a potential drop to $1.05.
The 4-hour chart shows the bears 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 bullish move. If they push the price above $1.35, the pair could start the next leg of the uptrend.
If the bears want to take over in the short term, they will have to push the price below $1.20. That could increase the possibility of a drop to $1.05. There is minor support near $1.15, but it may not hold.
USDT/HBAR
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 resistance.
The 20-day EMA ($0.07) is turning higher and the RSI is in overbought territory, indicating that the bulls are in command. 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 can start a fresh move higher towards $0.11. If that level scales as well, the move up could extend to $0.15.
Conversely, if the price falls below the breakout level, it will indicate that the bears continue to sell rallies. Then the pair could drop to the 20 day EMA.
The 4-hour chart suggests that traders are taking profits near the psychological resistance at $0.10. The pair could pull back towards the 20 day EMA, which is close to the breakout level. Buyers are likely to buy the dip at this level. If they do, the pair may try to rally above $0.10 and resume the bullish move.
Conversely, if the price falls below $0.08, it can catch several aggressive bulls. That could result in a long selloff and a drop to $0.07. The deep correction may delay the start of the next leg of the upward move.
Related: Bitcoin Price Sees $22,000 Bounce With BTC Market Structure “Not Broken Yet”
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 $3 to be broken through, 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 SMA but the bears were unable to take advantage of this momentum and sink the pair to the immediate support of $2. Buyers bought the dip to $2.20 and pushed the price above the moving averages. The pair could go up to $2.80 and then $3.
Sellers likely have other plans. They will try to push the price back below the moving averages and retest the support at $2.20. If this level is broken, the pair could fall to $2. Such a move will point to a possible range-bound action in the near term.
Bit/USDT
While several cryptocurrencies have given back a portion 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 to break down again and hold the price below the 20 day EMA. If they can pull it off, the pair could extend its pullback to the 50-day SMA ($0.48).
Conversely, if the price bounces off the 20-day EMA, the bulls will try the $0.60 resistance again. A break and close above this level will signal the resumption of the uptrend. The pair can then go up to $0.65 and then to $0.69.
The 4-hour chart shows that the pair is trapped between the support at $0.54 and the resistance at $0.60. Both moving averages are flattening out and the RSI is near the midpoint, indicating a balance between supply and demand.
A consolidation above crucial support is usually a positive sign, and that increases the likelihood of a continuation of the upside move. If the bulls push the price above $0.60, the bullish move can resume.
The bears will win the game if the price falls below $0.54. That could open the doors for a possible 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.
