After two wild weeks, Bitcoin (BTC) has taken a breather near the $52,000 level. The bears are about to start a correction, but the bulls show no signs of letting up. A strong stock market, the upcoming halving, and solid inflows into spot Bitcoin exchange-traded funds will likely limit the downside.
Analysts will be closely monitoring inflows into the Spot Bitcoin ETF to determine the next direction for Bitcoin. According to data from BitMEX Research, Grayscale Bitcoin Trust had just $44 million in outflows on February 24th, the lowest level since January 11th.
Crypto market sentiment remains positive as Bitcoin remains above $50,000. While Bitcoin consolidates its value, short-term traders may look to altcoins that are showing strength for trading opportunities.
Could Bitcoin resume its uptrend after a brief hiatus? Will altcoins follow Bitcoin higher? Let’s take a look at the top five cryptocurrencies that are looking strong on the charts.
Bitcoin price analysis
Bitcoin has found support near $50,500 and resistance near $53,000, indicating consolidation within a narrow range. This is a positive sign and shows that the bulls are not rushing to the exit.
A rising moving average and the relative strength index (RSI) near the overbought zone suggest that the bulls have the upper hand. A breakout and close above $53,000 could open the door for a rally to $60,000.
Time is running out for the bears. If the rally is to be halted, the price will need to fall below the breakout level of $48,970 quickly. If this happens, the BTC/USDT pair could plummet to its 50-day simple moving average ($45,542).
The moving average on the 4-hour chart is flat and the RSI is just above the midpoint, indicating a slight advantage for the bulls. If the price rises above the 50-SMA, the pair can rise to $53,000. This level is likely to act as severe resistance, but above it the pair could rise to $55,000 and then $60,000.
Conversely, if the price drops from $53,000, the pair may remain range-bound for some time. If it falls below $50,500, it could fall to $48,970. This continues to be an important short-term support to watch, as anything below this would tip the scales in favor of the bears.
Ether price analysis
Ether (ETH) has been on a strong upward trend for the past few days. The bears tried to halt the rally near $3,000, but the shallow correction suggests that the bulls are not willing to break.
The 20-day exponential moving average ($2,784) trending up and the RSI in the overbought zone indicates that the bulls are in control. A close above $3,000 could signal the start of the next leg of the uptrend. The ETH/USDT pair could initially rise to $3,300 and then $3,650.
The first support on the downside is at $2,850 and then the 20-day EMA. A decline below the 20-day EMA would suggest that the bulls may be in a hurry to book profits. The pair could fall to $2,717 and eventually fall to the 50-day SMA ($2,527).
Although the pair is facing resistance near $3,000, it is a positive sign that the bulls did not allow the price to fall below the 50-SMA. The 20-EMA is starting to rise and the RSI is in positive territory, indicating a path of least resistance to the upside. If the price sustains above $3,000, the uptrend could resume.
The first sign of weakness is a break and exit below the 50-SMA. If buyers fail to sustain this level, the pair could fall to $2,850 and then $2,717.
Uniswap price analysis
Uniswap (UNI) soared above the overhead resistance at $7.79 on February 23, indicating that the bulls had taken control.
The long wick of the February 24th candle shows aggressive profit-taking near $12.85. This will likely trigger a correction, with support at the 50% Fibonacci retracement level at $9.91. If the price rises from current levels, the bulls will try to push the UNI/USDT pair to $11.63 and then $12.85. A breakout of $12.85 could pave the way for a rally to $17.
Conversely, if the price falls below $9.91, the next stop could be the 61.8% Fibonacci retracement level at $9.21. Generally, a break below the 61.8% retracement level suggests that an uptrend may be over.
The bulls are trying to sustain the pair above the 20 EMA on the 4-hourly chart. If the price rises from current levels, it could once again face strong resistance at $11.63. Unless buyers make significant concessions from $11.63, a rally to $12.85 is likely.
On the other hand, if the price continues to decline and falls below the 20-EMA, it would suggest that the bears are attempting a comeback. Thereafter, the pair could fall to $9.21 and then to the 50-SMA. The deeper the decline, the longer the time required for the next leg of the uptrend to begin.
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Filecoin price analysis
The bulls were unable to push or sustain Filecoin (FIL) above the $8.12 resistance over the past few days.
The bulls are looking to break out of the overhead zone between $8.12 and $8.57 again on February 25th. If successful, it would signal a resumption of the uptrend. The FIL/USDT pair may reach the $10 resistance level, and the bears are expected to take strong defensive measures.
Contrary to this assumption, if the price declines below $7.70, it would indicate that the bears are fiercely defending the overhead zone. This could initiate a decline to the 20-day EMA ($6.74), which is likely to serve as strong support.
The pair has rebounded from the 20-EMA, indicating that sentiment remains positive and traders view the dip as a buying opportunity. If buyers keep the $8.57 price above the overhead hurdle, the price could accelerate towards $9.
While a rising moving average favors the bulls, the RSI is showing signs of forming a negative divergence. This indicates that the bullish momentum may be weakening. Sellers need to keep the price below the 20-EMA to indicate the start of a correction to the 50-SMA.
graph price analysis
Graf (GRT) broke above the overhead resistance at $0.23 on February 18, indicating a resumption of the uptrend.
The bears are trying to halt the rally around $0.30, but it is a positive sign that the bulls did not allow the price to fall below the breakout level of $0.23. This suggests that there is some buy-in.
If the price sustains above $0.30, the GRT/USDT pair could soar to $0.37. The risk to the upside lies in the overbought levels of the RSI, which suggests a possible correction or consolidation in the short term. The trend will favor the bears if the price breaks below the 20-day EMA ($0.22).
The 4-hour chart shows that the pair is receiving support at the 20-EMA on a push. Although this is a positive sign, the RSI has formed a negative divergence, suggesting that positive momentum is weakening. If the price continues to fall and falls below the 20-EMA, the selling could accelerate and the pair could plummet to $0.23.
Conversely, if the price moves up from the current level or the 20-EMA, it would indicate that the uptrend is sustained. The bulls will then attempt to break through the $0.30 barrier and start the next leg of the uptrend.
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.
