BTC continues to lose floor, but when the $40,000 degree is reclaimed, LEO, MANA, KLAY and XTZ could possibly be the primary to get well.
Russia’s huge build-up of troopers, warplanes, gear and prolonged navy drills close to Ukraine’s borders elevated fears of a potential invasion inside the subsequent few days. That would have renewed promoting in Bitcoin (BTC), which plummeted beneath the robust help at $39,600.
Among the many gloom and doom, there’s a ray of hope for crypto buyers as a result of information from Glassnode exhibits that greater than 60% of Bitcoin provide has not been utilized in any transaction for greater than a yr. This means that long-term hodlers usually are not dumping their positions within the downtrend.
Mike McGlone, chief commodity strategist at Bloomberg Intelligence, warned that Bitcoin could possibly be in for a “tough week forward” and cautioned that “inflation is unlikely to drop except danger belongings do.” Nonetheless, McGlone expects Bitcoin to emerge stronger this yr.
May Bitcoin and altcoins stage a restoration and entice the aggressive bears? Let’s examine the charts of the top-5 cryptocurrencies that will take part in a aid rally.
The failure of the consumers to defend the robust help at $39,600 signifies that Bitcoin continues to face robust promoting by the bears. The 20-day exponential shifting common ($41,193) has began to show down and the relative power index (RSI) has slipped into the damaging territory, suggesting that bears have the higher hand.
If the worth sustains beneath $39,600, the promoting might decide up momentum and the BTC/USDT pair might drop to the quick help zone between $36,250 and $35,507.01.
The bulls are anticipated to defend this zone aggressively as a result of a break beneath it might clear the trail for a retest of the Jan. 24 intraday low at $32,917.17. The longer the worth sustains beneath $39,600, the higher the potential for the downward transfer.
Opposite to this assumption, if the worth rebounds off the present degree and rapidly rises above $39,600, it is going to counsel robust accumulation at decrease ranges. The bulls will then attempt to push the worth above the 20-day EMA.
The bulls must clear the overhead hurdle at $45,821 to point the beginning of a brand new up-move.
The failure of the bulls to realize a powerful rebound off the $39,600 help signifies a scarcity of demand at increased ranges. This may occasionally have emboldened the bears who pulled the worth beneath $39,600.
The RSI has dipped deep into the oversold territory, indicating that the promoting might have been overdone within the brief time period. This means a minor aid rally or consolidation within the close to time period.
If bears efficiently defend the retest of the breakdown degree in the course of the subsequent bounce, the promoting might intensify and the pair might plummet to $36,000. This damaging view will invalidate within the brief time period if bulls drive the pair above $41,000.
UNUS SED LEO (LEO) has been correcting since making a brand new all-time excessive at $8.14 on Feb. 8. The bears pulled the worth beneath the 50% Fibonacci retracement degree at $5.74 however the bulls are aggressively defending the 20-day EMA ($5.45).
The rising 20-day EMA and the RSI within the constructive territory point out that bulls have a slight edge. If consumers drive the worth above $6.24, the LEO/USD pair might try to resume the up-move. The pair might then rise to $7.
Conversely, if bulls fail to maintain the present rebound, the bears will sense a possibility and attempt to pull the pair beneath the 20-day EMA. In the event that they handle to do this, the sentiment might flip bearish and the pair might slide to the 61.8% retracement degree at $5.18.
The 4-hour chart exhibits that the pair is range-bound between $5.52 and $6.24. The 20-EMA and 50-simple shifting common have flattened out and the RSI is close to the midpoint, indicating a stability between provide and demand.
This stability will shift in favor of the bears in the event that they pull and maintain the worth beneath $5.52. The pair might then drop towards the 200-SMA.
Conversely, if consumers push and maintain the worth above the 50-SMA, the pair might rally to $6.24. The bulls must clear this hurdle to sign that they’re again within the driver’s seat.
Decentraland (MANA) turned down from the downtrend line on Feb. 16, indicating that the sentiment stays bearish and merchants are promoting on rallies to stiff resistance ranges.
The bears have pulled the worth beneath the 50-day SMA ($2.83), which opens the door for a potential draw back to the robust help zone between $2.44 and the 200-day SMA ($2.20).
If the worth rebounds off this zone, the bulls will once more try to push the MANA/USDT pair to the downtrend line. The bulls must clear this hurdle to point the beginning of a brand new up-move.
Conversely, if bears sink and maintain the worth beneath the 200-day SMA, the promoting might intensify and the pair might slide additional to $1.70.
The bears have pulled the worth beneath the 200-SMA. If the worth sustains beneath this degree, the pair might drop to the help line of the descending channel. A break and shut beneath the channel might sink the pair to $2.44.
If the worth turns up from the present degree, the bulls will attempt to push the pair above the 200-SMA. Such a transfer would be the first signal that bulls try a comeback. A break and shut above the 20-EMA will improve the potential for a rally to the resistance line of the channel.
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Klaytn’s native cryptocurrency KLAY turned down from the downtrend line on Feb. 16, indicating that bears proceed to promote on rallies.
Nonetheless, a minor constructive is that bulls haven’t allowed the worth to interrupt beneath the 20-day EMA ($1.23). This means that merchants are shopping for on dips to this help.
If the worth rises and sustains above the 50-day SMA ($1.27), the bulls will once more attempt to clear the overhead hurdle on the downtrend line. In the event that they handle to do this, it is going to point out a potential change in pattern. The KLAY/USDT pair might then rally to $1.50.
Alternatively, a break and shut beneath the 20-day EMA will point out that bears have overpowered the consumers. That would pull the worth all the way down to $1.10.
The 4-hour chart exhibits that the bears are aggressively defending the overhead resistance at $1.36. The pair turned down from this resistance however the bulls haven’t allowed the worth to interrupt and maintain beneath the 50-SMA.
If the worth turns up from the present degree, the consumers will try to clear the quick resistance at $1.31 and problem the hurdle at $1.36. A break and shut above this degree might open the doorways for a potential rally to $1.50.
This constructive view will probably be negated on a break and shut beneath the 200-SMA. That would pull the pair all the way down to $1.15.
Tezos (XTZ) turned down from the downtrend line on Feb. 10, indicating that bears proceed to promote on rallies. The bears will now try to tug the worth to the uptrend line.
The uptrend line has been appearing as a powerful help since March 2020. Therefore, the bulls are prone to defend the uptrend line aggressively. If the worth rebounds off this help, the consumers will attempt to push the XTZ/USDT pair above the downtrend line.
In the event that they succeed, the pair might sign a potential change in pattern. This constructive view might invalidate if the worth breaks and sustains beneath the uptrend line. Such a transfer might open the doorways for additional draw back.
The 4-hour chart exhibits the pair is in a agency bear grip. The value has dropped to the 61.8% Fibonacci retracement degree at $3.32, which is a vital degree for the bulls to defend. A break and shut beneath this help will improve the potential for a drop to the 78.6% Fibonacci retracement degree at $2.98 and later to the uptrend line.
The primary signal of power will probably be a break and shut above the 20-EMA. Such a transfer will point out that the promoting stress could possibly be decreasing. A potential short-term pattern change will probably be signaled on a break and shut above the 50-SMA.
The views and opinions expressed listed here are solely these of the writer and don’t essentially replicate the views of Cointelegraph. Each funding and buying and selling transfer entails danger, you must conduct your individual analysis when making a call.