Bitcoin (BTC) is currently facing resistance near $52,000, which could lead to a short-term correction. On February 21, there were net outflows of approximately $36 million from Bitcoin exchange-traded funds (ETFs), but on February 22, there were net inflows of around $251 million into the ETFs.
Some analysts believe that a pullback is likely before the halving in April. They compare Bitcoin’s current bull phase to the bull runs of 2016 and 2020, suggesting the possibility of a pre-halving retrace followed by a post-halving reaccumulation period.
Bitcoin’s hesitation to continue its rally has resulted in profit-booking in certain altcoins. A corrective phase is seen as positive for the overall health of the market as it eliminates weak hands and allows stronger hands to buy at lower levels.
Now let’s analyze the charts of the top 10 cryptocurrencies to identify the crucial support levels to watch out for.
Bitcoin price analysis:
Bitcoin’s bulls bought the dip to the immediate support of $50,625 but were unable to overcome the barrier at $52,000. If the bears manage to pull the price below $50,625, the BTC/USDT pair could drop to the strong support at $48,970. A bounce off this level would indicate a bullish sentiment and a resumption of the uptrend. On the other hand, if the bears succeed in pushing the price below $48,970, the selling could intensify, leading to a nosedive to the 50-day SMA at $45,247.
Ether price analysis:
Ether attempted to break above the psychological resistance of $3,000 but faced resistance from the bears. Sellers are now trying to initiate a correction towards the breakout level of $2,717. This level is crucial as the 20-day EMA is nearby. A strong rebound from $2,717 would indicate that the bulls have turned the level into support, and they would then aim to clear the hurdle at $3,000. If successful, the ETH/USDT pair may reach $3,300. However, if the bears maintain the price below $2,717, the pair could drop to the 50-day SMA at $2,497, potentially delaying the start of the next uptrend leg.
BNB price analysis:
BNB resumed its uptrend after breaking above the $367 resistance. The next target objective on the upside is $400. If the bulls can defend the support levels at $368 and the 20-day EMA at $344, it would indicate that every minor dip is being bought. This would improve the chances of a rally to $460. However, if the supports fail, the correction could extend to the 50-day SMA at $318, signaling a trend change.
Solana price analysis:
Solana bounced off the 50-day SMA at $99 but failed to move above the 20-day EMA at $105. The bears will try to strengthen their position by pushing the price below the 50-day SMA. If successful, the SOL/USDT pair could drop to $93 and then to $80. A rebound from $80 is likely to attract aggressive buying by the bulls. On the upside, the bulls need to overcome the downtrend line to signal the end of the correction. A rally to $126 is possible, but the bears are likely to defend that level.
XRP price analysis:
XRP formed an inside-day candlestick pattern, indicating indecision between buyers and sellers. However, the bears took control on February 23, pushing the price down. They will now try to sink the pair to the strong support zone between $0.48 and $0.46. If there is a strong rebound from this zone, the XRP/USDT pair may remain range-bound between $0.46 and $0.57 for a few days. To start a new uptrend, the bulls need to push the price above $0.57, with targets at $0.67 and $0.74.
Cardano price analysis:
Cardano is trying to find support at the 20-day EMA at $0.57, but the bears are maintaining selling pressure. If the bears succeed in pushing the price down, the ADA/USDT pair could drop to the 50-day SMA at $0.53. This level is crucial for the bulls to defend, as a break below it could lead to a decline to the vital support at $0.46. On the upside, a strong rebound from the 20-day EMA would suggest a positive sentiment, and the bulls would aim to overcome the resistance zone between $0.64 and $0.68.
Avalanche price analysis:
Avalanche attempted a recovery but was met with selling pressure at the 20-day EMA. If the bears continue to sell, the AVAX/USDT pair could drop to the solid support at $32, where a bounce is likely. Alternatively, if the price turns up and rises above the 20-day EMA, it would indicate strong buying at lower levels. The bulls would then attempt to drive the price above $42 and complete the inverse head-and-shoulders pattern.
Dogecoin price analysis:
Dogecoin is currently being supported by the symmetrical triangle, with the bulls aiming to push the price above the $0.09 resistance. If successful, the pair could start an uptrend towards the $0.10 to $0.11 resistance zone. However, if the price falls below the 50-day SMA at $0.08, it could slump further to the uptrend line, giving the advantage to the bears.
Chainlink price analysis:
Chainlink has pulled back, and the bears are aiming to push the price to the breakout level at $17.32. A rebound from this level would indicate support from the bulls, increasing the likelihood of a retest of $20.85. However, if the bears manage to break below the 50-day SMA at $16.65, it would suggest a deeper correction to $15 and potentially $12.85.
Polkadot price analysis:
Polkadot is currently within an ascending channel pattern, with the bulls trying to defend the support line. A break below the 50-day SMA at $7.17 could lead to a slide to $6.50. On the other hand, a strong bounce from the current level would indicate strong support from the bulls, keeping the price within the channel. The bulls would then aim to push the pair towards the channel’s resistance line.
Disclaimer: This article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.