Every uptrend witnesses periodic bouts of profit-booking as short-term traders tend to unwind positions either on adverse news or at critical technical resistance levels. This occurred with Bitcoin (BTC) today as the price momentarily dropped below $48,000 and traders scrambled to close or top up positions before being liquidated.
Elon Musk’s tweet on Feb. 20 that said Bitcoin prices “seem high” and the U.S. Treasury Secretary Janet Yellen’s warning today on Bitcoin being “extremely inefficient” could have dampened short-term sentiment.
Another possible factor that may have exacerbated the fall could have been the unwinding of excessively leveraged long positions. Over $1.64 billion worth of Bitcoin futures positions were liquidated during today’s sharp pullback.
Echter, derivatives data for Bitcoin futures do not show any negative development, as highlighted by Cointelegraph Markets analyst Marcel Pechman.
Let’s analyze the charts of the top-10 cryptocurrencies to spot the critical levels on the upside and the key support levels on the downside.
BTC / USD
Bitcoin broke above the resistance line of the ascending channel on Feb. 19, but could not pick up momentum. This showed that the current uptrend was tiring out. Traders aggressively booked profits today, which pulled the price down to the 20-day exponential moving average ($48,081).
Echter, the lower levels continue to attract buyers as seen from the long tail on the daily candlestick. If the price sustains above the midpoint of the channel, the bulls will again try to push the pair above the channel.
Als het ze lukt om dat te doen, the BTC/USD pair could resume the uptrend. Het volgende doelwit aan de bovenkant is $60,974.43 en toen $66,000. De oplopende voortschrijdende gemiddelden en de relatieve sterkte-index (RSI) in the positive territory suggest that bulls are in control.
In tegenstelling tot deze veronderstelling, if the price sustains below the midpoint of the channel, the bears will again try to break the 20-day EMA support. Als het ze lukt om dat te doen, het pair zou kunnen dalen tot het 50-dagen simple moving average ($39,885).
ETH / USD
Ether (ETH) afgewezen vanaf de weerstandslijn van het stijgende kanaal op Feb. 20, indicating that traders booked profits after the price reached the psychologically important level at $2,000.
The selling continued today and the ETH/USD pair dropped to the support line of the ascending channel. Echter, the positive sign is that the bulls purchased the dip as seen from the long tail on the day’s candlestick.
If the buyers can push and sustain the price above the 20-day EMA ($1,753), the positive momentum may remain intact.
Integendeel, if the price sustains below the 20-day EMA, the bears will try to sink the pair below the channel and the 50-day SMA ($1,465). Als ze slagen, de correctie zou kunnen verdiepen $1,200 en dan naar $1,000.
BNB / USD
Binance-munt (BNB) has been witnessing volatile moves in the past few days. After the sharp rally on Feb. 19, traders aggressively booked profits on Feb. 20. The bulls tried to resume the uptrend on Feb. 21, but the higher levels have again attracted profit-booking.
The bulls are currently attempting to defend the zone between the 50% Fibonacci-retracementniveau op $233.3485 en de 61.8% retracementniveau op $206.1262. Als ze slagen, the BNB/USD pair may continue the volatile range-bound action for a few more days.
Integendeel, als de beren de onderstaande prijs zinken $206.1262, the decline could extend to the 20-day EMA ($168). This is an important support to keep an eye on because a break below it will suggest a trend change and a likely fall to $118.
DOT / USD
Stip (PUNT) broke above the ascending channel on Feb. 19 and rose to a new all-time high at $42.2848 op feb. 20. Echter, the long wick on the day’s candlestick showed profit-booking at higher levels.
After forming an inside day candlestick pattern on Feb. 21, the DOT/USD pair slumped back into the channel today. Echter, the bulls bought the dips and have pushed the price back above the channel.
The buyers will now try to push the price above $42.2848 en hervat de uptrend. Aan de andere kant, the bears will try to sink the pair back into the channel. Als ze slagen, het paar kan naar de 20-dagen EMA vallen ($28.89).
ADA / USD
Cardano (ER BESTAAT) surged above the $0.9817712 overhead weerstand op feb. 20 and reached $1.1980811. Echter, the long wick on the daily candlestick showed profit-booking at higher levels.
The selling intensified today and that pulled the ADA/USD pair down to the 20-day EMA ($0.834). Echter, the long tail on today’s candlestick shows aggressive buying at lower levels.
If the price sustains above $1, the bulls will try to resume the up-move. A breakout of $1.1980811 could open the doors for a rally to $1.25 en toen $1.50.
Omgekeerd, als de prijs hieronder zakt $0.9817712, the pair may again drop to the 20-day EMA. This is an important support to watch out for because if it cracks, de correctie kan zich verdiepen $0.6879684.
XRP / USD
XRP continues to trade inside the $0.50 naar $0.65 bereik. The altcoin bucked the trend today and rallied while most other major cryptocurrencies were witnessing sharp selling.
The price had rallied to $0.65155 today but the bulls could not sustain the higher levels. This shows the bears have not yet thrown in the towel.
Echter, the upsloping 20-day EMA ($0.50) and the RSI in the positive territory suggest the path of least resistance is to the upside. If the bulls can propel and sustain the price above $0.65, de rally kan zich uitstrekken tot $0.78608.
This positive view will invalidate if the price turns down from the current levels and breaks below the $0.50 ondersteuning. Als dat gebeurt, het XRP / USD-paar kan dalen tot $0.3855.
LTC / USD
The bulls could not sustain Litecoin (LTC) above the $240 overhead resistance from Feb. 17 tot feb. 21. This failure to resume the uptrend could have attracted profit-booking from short-term traders, which resulted in a sharp fall today.
The LTC/USD pair broke below the 20-day EMA ($198) en de $185.5821 support today, but the long tail on the day’s candlestick shows the bulls purchased this dip. The flattening 20-day EMA and the RSI just above the midpoint, suggest a balance between supply and demand.
If the price sustains above the 20-day EMA, de stieren zullen opnieuw proberen de uptrend te hervatten. Integendeel, if the price again slips below the 20-day EMA, het paar zou kunnen dalen naar de 50-dagen SMA ($165). A break below this support could pull the pair down to $120.
LINK / USD
Kettingschakel (KOPPELING) afgewezen vanaf de weerstandslijn van het stijgende kanaal op Feb. 20 and formed a Doji candlestick pattern on Feb. 21. The uncertainty of the Doji candlestick was resolved to the downside today.
The LINK/USD pair plunged below the 20-day EMA ($30) and the support line of the channel today. Echter, the long tail on the candlestick shows aggressive buying by the bulls at lower levels.
If the bulls can sustain the price inside the channel, it will suggest that the uptrend remains intact. Integendeel, if the price again breaks below the channel, it will indicate a possible trend change.
The next critical support on the downside is the 50-day SMA ($23.82) and if this support also cracks, the decline may extend to $20.1111.
BCH / USD
The range-bound action in Bitcoin Cash (BCH) resolved to the downside today when the price dipped below the $670 ondersteuning. This breakdown showed that the equilibrium had tilted in favor of the bears.
The BCH/USD pair broke below the 20-day EMA ($610) and fell to an intraday low at $533.33 vandaag. Echter, the bulls aggressively purchased the dip below the $539 ondersteuning, resulterend in een scherpe rebound.
If the price sustains above the 20-day EMA, the bulls will again try to push the price back into the $670 naar $745.39 bereik. Als ze slagen, it will suggest that the current correction could be over.
Integendeel, if the price sustains below the 20-day EMA, the pair may again drop to $539 and then to the 50-day SMA ($510).
XLM / USD
Stellaire lumen (XLM) failed to resume its uptrend in the past few days, which showed a lack of demand at higher levels. This could have attracted profit-booking from short-term traders who may have dumped their positions today.
The XLM/USD pair broke below the 20-day EMA ($0.44) en de $0.409 support today, but the bulls purchased at lower levels. The flattish 20-day EMA and the RSI below 58 suggest the bullish momentum may be weakening.
If the bulls fail to sustain the price above the 20-day EMA, the bears will again try to sink the price below $0.409. Als het ze lukt om dat te doen, the pair could slide to the $0.35 ondersteuning.
Aan de andere kant, if the price sustains above the 20-day EMA, de stieren zullen opnieuw proberen de uptrend te hervatten. Een pauze hierboven $0.535 will suggest an advantage to the bulls and may result in a retest of $0.600681.
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