Bitcoin (BTC) is taking a pause after a two-week run, hovering around the $52,000 level. While bears are attempting to initiate a correction, the bulls are showing no signs of backing down. Strong equity markets, an upcoming halving event, and significant inflows into spot Bitcoin exchange-traded funds are expected to limit any downside.
Analysts are closely monitoring the inflows into spot Bitcoin ETFs for insights into Bitcoin’s next move. Data from BitMEX Research reveals that outflows from Grayscale Bitcoin Trust were only $44 million on February 24, the lowest since January 11.
Crypto market data from Coin360 shows that the overall sentiment in the market remains positive as Bitcoin continues to hold above $50,000. While Bitcoin consolidates, short-term traders may find trading opportunities in altcoins that are exhibiting strength.
The question remains: will Bitcoin resume its upward trend after a brief pause? And will altcoins follow suit? Let’s take a look at the top five cryptocurrencies that appear strong on the charts.
Bitcoin Price Analysis
Bitcoin has found support near $50,500 and faces resistance near $53,000, indicating a consolidation within a narrow range. This is a positive sign, suggesting that the bulls are not rushing to exit.
The rising moving averages and the relative strength index (RSI) near the overbought zone indicate that the bulls have the upper hand. If the price breaks and closes above $53,000, it could pave the way for a rally towards $60,000.
Time is running out for the bears. To prevent the rally, they will need to quickly push the price below the breakout level of $48,970. If they succeed, the BTC/USDT pair could drop to the 50-day simple moving average at $45,542.
On the 4-hour chart, the moving averages are flat, and the RSI is slightly above the midpoint, giving a minor advantage to the bulls. If the price remains above the 50-SMA, the pair could rise to $53,000. Although this level is likely to act as strong resistance, a successful break above it may lead to a rally towards $55,000 and eventually $60,000.
Conversely, if the price reverses from $53,000, the pair may continue to move within the range for some time. A drop below $50,500 could push the pair towards $48,970, which is a critical short-term support level. A break below this level would favor the bears.
Ether Price Analysis
Ether (ETH) has been experiencing a strong uptrend in recent days. Although the bears attempted to halt the upward move near $3,000, the shallow correction indicates that the bulls are not giving up.
The upward sloping 20-day exponential moving average ($2,784) and the overbought RSI point to the dominance of the bulls. A close above $3,000 could trigger the next leg of the uptrend, with the ETH/USDT pair potentially rising to $3,300 and then $3,650.
On the downside, the first support level is $2,850, followed by the 20-day EMA. A drop below the 20-day EMA would suggest that the bulls are taking profits, potentially leading to a decline towards $2,717 and eventually the 50-day SMA at $2,527.
On the 4-hour chart, the pair is facing resistance near $3,000. However, the bulls have managed to hold the price above the 50-SMA, indicating strength. The 20-EMA is turning up, and the RSI is in positive territory, suggesting that the path of least resistance is to the upside. If the price remains above $3,000, the pair could resume its uptrend.
The first sign of weakness would be a break and close below the 50-SMA. If buyers fail to defend this level, the pair may drop to $2,850 and then $2,717.
Uniswap Price Analysis
Uniswap (UNI) surged above the resistance level of $7.79 on February 23, signaling a takeover by the bulls.
The long wick on the candlestick from February 24 indicates profit booking near $12.85, which triggered a correction. However, the correction is expected to find support at the 50% Fibonacci retracement level of $9.91. If the price bounces back from this level, the bulls will attempt to push the UNI/USDT pair towards $11.63 and later $12.85. A break above $12.85 could pave the way for a rally towards $17.
On the downside, if the price drops below $9.91, the next support level is likely to be the 61.8% Fibonacci retracement level at $9.21. A break below this level suggests the end of the uptrend.
On the 4-hour chart, the bulls are trying to keep the pair above the 20-EMA. If the price rebounds from the current level, it is likely to face strong resistance at $11.63. Holding above this level increases the chances of a rally towards $12.85.
However, if the price continues to decline and breaks below the 20-EMA, it indicates a possible comeback by the bears. The pair could then drop to $9.21 and eventually the 50-SMA. The deeper the fall, the longer it may take for the next leg of the uptrend to begin.
Filecoin Price Analysis
Filecoin (FIL) has struggled to sustain a breakout above the $8.12 resistance level in recent days, but the bulls have maintained pressure.
The bulls are once again attempting to clear the resistance zone between $8.12 and $8.57 on February 25. If successful, it would indicate the resumption of the uptrend. The FIL/USDT pair could reach the $10 resistance level, where the bears are likely to put up a strong defense.
However, if the price turns down and drops below $7.70, it suggests that the bears are fiercely defending the resistance zone. This could lead to a decline towards the 20-day EMA at $6.74, which is expected to act as strong support.
On the 4-hour chart, the pair bounced off the 20-EMA, indicating positive sentiment among traders who see dips as buying opportunities. If buyers manage to keep the price above the resistance hurdle at $8.57, the pair could accelerate towards $9.
While the rising moving averages favor the bulls, the RSI is showing signs of a negative divergence, suggesting weakening bullish momentum. To signal a correction towards the 50-SMA, sellers would need to sink and maintain the price below the 20-EMA.
The Graph Price Analysis
The Graph (GRT) broke above the overhead resistance of $0.23 on February 18, indicating a continuation of the uptrend.
The bears are attempting to halt the upward move near $0.30, but the bulls have managed to keep the price above the breakout level of $0.23. This suggests that dips are being bought.
If the price remains above $0.30, the GRT/USDT pair could surge towards $0.37. However, the overbought RSI indicates a possible correction or consolidation in the near term. The bears would gain an advantage if the price falls below the 20-day EMA at $0.22.
On the 4-hour chart, the pair is finding support at the 20-EMA during dips, which is a positive sign. However, the RSI has formed a negative divergence, indicating weakening bullish momentum. If the price continues to decline and breaks below the 20-EMA, selling pressure could increase, pushing the pair towards $0.23.
Conversely, if the price bounces back from the current level or the 20-EMA, it would confirm that the uptrend is still intact. The bulls would then attempt to break the barrier at $0.30 and start the next leg of the uptrend.
Disclaimer: This article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research before making a decision.