Bitcoin (BTC) reached a new two-year high near $55,000 on February 26, driven by the continued demand for spot Bitcoin exchange-traded funds (ETFs). Institutional investors have invested $570 million in Bitcoin investment products over the past week, according to data from CoinShares. Meanwhile, gold ETFs have experienced outflows of $3.6 billion during the same period. Analysts predict that Bitcoin ETFs will surpass gold ETFs in terms of assets under management (AUM) within the next two years.
Bitcoin’s strength is expected to have a positive impact on the cryptocurrency market and benefit select altcoins. However, as Bitcoin approaches its all-time high, there is a possibility of a pullback as bears attempt to stop the rally.
The S&P 500 Index broke above the resistance at 5,048 on February 22, signaling the continuation of an uptrend. However, the negative divergence on the relative strength index (RSI) suggests that the uptrend may be losing momentum. The key support level to watch is the 20-day exponential moving average (4,983). A break below this level could lead to a decline to the 50-day simple moving average (4,857). On the other hand, if the index continues to rise, it could invalidate the negative divergence and potentially reach 5,200.
The U.S. Dollar Index (DXY) dipped below the 20-day exponential moving average (103) on February 22, but aggressive buying at the neckline of the inverse head-and-shoulders pattern suggests bullish sentiment. The 20-day EMA and the RSI near the midpoint do not provide a clear advantage to either the bulls or the bears. If the price rises and stays above the 20-day EMA, the bulls will aim to push the index above 105, potentially leading to a rally to 107. Conversely, a decline from the current level could indicate a comeback by the bears, with the index potentially dropping to the 50-day SMA (103).
Bitcoin broke above the overhead resistance at $53,000 on February 26, indicating that bulls are in control. If the price remains above $53,000, the BTC/USDT pair could gain momentum and surge toward $60,000. However, there are multiple support levels on the downside, with $50,500, the 20-day EMA ($50,075), and the breakout level of $48,970 as potential areas where the decline could be halted. A break below $48,970 would indicate a deeper correction to the 50-day SMA ($45,734).
Ether (ETH) broke above the $3,036 resistance on February 25, signaling the start of the next leg of the uptrend. The moving averages indicate that bulls are in control, but the overbought zone on the RSI suggests a potential minor correction or consolidation. If the price remains above $3,000, the likelihood of a rally to $3,300 and $3,540 increases. However, a break and close below the 20-day EMA ($2,823) would indicate profit booking and could lead to a drop to $2,717 and subsequently the 50-day SMA ($2,546).
BNB is attempting to resume its uptrend, but the overbought level on the RSI suggests that bears may pose a strong challenge near the overhead resistance at $400. If the price bounces off the current level and rebounds from the 20-day EMA ($356), it would indicate bullish sentiment and increase the chances of a break above $400, potentially leading to a rally to $460. Conversely, if the price continues to decline and breaks below the 20-day EMA, it would suggest aggressive profit booking by traders and could push the pair to the 50-day SMA ($323).
XRP has been trading near the moving averages, indicating uncertainty about the next directional move. The flat moving averages and the RSI just below the midpoint suggest a possible range-bound action in the near term, with $0.48 as the downside boundary and $0.58 as the upside boundary. To indicate that the correction may be over, buyers will need to drive and maintain the price above $0.58, potentially leading to a rally to $0.67 and eventually $0.74. Support levels are at $0.48 and $0.46.
Solana is finding support at the 50-day SMA ($100), suggesting that bulls are trying to halt the decline. The flat moving averages and the RSI near the midpoint indicate a range-bound action in the near term. To initiate a rally, buyers will need to push and maintain the price above the downtrend line, potentially leading to a rally towards the overhead resistance zone between $119 and $127. On the other hand, a decline from the current level or the downtrend line, along with a break below the 50-day SMA, would indicate selling by bears and could lead to a drop to $80.
Cardano managed to protect the 20-day EMA ($0.58), indicating positive sentiment. The rising 20-day EMA and the RSI in positive territory suggest a slight advantage for the bulls. If the price reaches the overhead resistance zone between $0.64 and $0.68, it may pave the way for further gains. However, a sharp decline below the 20-day EMA could indicate a loss of bullish momentum and a correction to the 50-day SMA ($0.54).
Avalanche bounced off the 50-day SMA ($36.12) on February 24, suggesting that buyers are interested in lower levels. The flat moving averages and the RSI near the midpoint do not provide a clear advantage for either buyers or sellers. A decline below the 50-day SMA could lead to a drop to $32, while a break and close above the 20-day EMA ($37.84) could open the doors for a possible rally to the overhead resistance at $42.
Dogecoin successfully defended the breakout level from the triangle but failed to break above the $0.09 resistance. This lack of demand at higher levels could give bears an opportunity to push the price below the moving averages. If they succeed, the DOGE/USDT pair could drop to the uptrend line and potentially to $0.07. On the other hand, a sustained move above $0.09 could lead to a surge to the resistance zone of $0.10 to $0.11, where bears are likely to defend.
Please note that this article does not provide investment advice or recommendations. Investing and trading always come with risks, and readers should conduct their own research before making any decisions.