Price Analysis 2/1: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, DOT, LTC, AVAX
Cryptocurrency traders are awaiting the results of the FOMC today, and if Powell’s comments signal an improvement in the US economy, there is a possibility of a reversal of the recent decline.
Bitcoin (BTC) rose nearly 40% in January, marking its first monthly record high since 2013. The sharp rally shifted sentiment and futures markets, which had been in backwardation in November and December, began trading in healthy contango. January, according to Glassnode.
A rally away from a bear market low, led by leaders rather than laggards, is a sign that the bottoming process has begun. The increase in Bitcoin’s dominance from around 38% in November to over 42% in January indicates that smart investors are starting to accumulate Bitcoin at low levels.
After January’s strong rise, the next big question is how Bitcoin will perform in February. Since 2013, Bitcoin has only ended in the red in 2014 and 2020, according to Coinglass data. If history repeats itself, a positive close in February is likely, but the pace of the rally could slow.
Can Bitcoin and altcoins remain range-bound and consolidate gains? Or can traders book profits and drive the price down? Let’s study the top 10 cryptocurrencies chart to find out.
BTC/USDT
Bitcoin fell below the breakout level of $22,800 on January 30, but bulls bought at lower levels, pushing the price back above $23,000 on January 31.
Rising moving averages and the Relative Strength Index (RSI) near overbought zones suggest that the uptrend is under control. Even if the price falls below $22,800, the BTC/USDT pair is likely to find support at the 20-day exponential moving average ($21,936).
A strong bounce from current levels or the 20-day EMA could push the price back towards the $24,000 overhead resistance.
A close below the 20-day EMA could be the first sign that bulls may be charging for the exit. There is some support at $21,480, but if this is abandoned, the pair could retest the psychologically dangerous level of $20,000.
ETH/USDT
Ethereum (ETH) rose from the 20-day EMA ($1,546) on January 31, but the bounce lacked strength. This indicates a lack of aggressive buying by the bulls.
The bears will try to turn the advantage in their favor by driving the price below the 20-day EMA and pulling down the strong support level of $1,500. If successful, the ETH/USDT pair could head back to the important support level at $1,352. A strong bounce from this level could indicate movement in a range between $1,352 and $1,680 for some time.
If the bulls want to maintain their dominance, they will need to fiercely defend the 20-day EMA and push the price above $1,680. That could push the pair up to $1,800 and eventually $2,000.
BNB/USDT
BNB (BNB) formed an intraday candlestick pattern on January 31st, indicating indecision between bullish and bearish trends.
If the price falls below the 20-day EMA ($300), the short-term advantage could be tilted in favor of the bears. The BNB/USDT pair could fall to $280 and then to its 50-day SMA ($273). Buyers are expected to defend this area vigorously.
On the other hand, bulls need to overcome a solid barrier at $318 to gain the upper hand. There is no significant resistance between $318 and $360, so this distance can be covered in a short period of time.
XRP/USDT
XRP (XRP) plunged below the 20-day EMA ($0.40) on January 30, but the bears were unable to sustain it lower. This means the bulls are buying on the downside.
The 20-day EMA has flattened and the RSI is just above the midpoint, indicating range-limiting action in the near term. If the price falls below the 20-day EMA, the XRP/USDT pair may fall towards the 50-day SMA ($0.37), which could act as strong support. The pair could then attempt to rally into the $0.42 to $0.44 overhead area.
If buyers want to gain the upper hand, they will have to push the price above indirect resistance. The pair could then pick up speed and surge to $0.51 and then to $0.55.
ADA/USDT
Cardano (ADA) rose from the 20-day EMA ($0.36) on January 31, but the bulls failed to overcome the $0.40 barrier. This suggests that the Ox may be exhausted.
Bears will try to strengthen their positions by pushing the price below the 20-day EMA support. If they can pull it off, the ADA/USDT pair could enter a short-term correction phase. There is minor support at $0.32, but if it fails the next support will be at $0.30.
The 20-day EMA has not been violated since January 4th, so the bulls will make every effort to defend it. If the price rises from the 20-day EMA and surpasses $0.40, it would indicate that the uptrend could continue for some time. The pair could then rebound to $0.44.
DOJI/USDT
Dogecoin (DOGE) broke through the $0.09 resistance level on January 31 and surged to near $0.10. This is a positive sign, but the bears are in no mood to give up. Sellers lowered the price to $0.09 on February 1st.
The 20-day EMA ($0.09) is an important level to watch. If the price bounces from this level with strength, it means sentiment is still positive and traders are buying on the dip. This could boost prospects for a rally to $0.11, where the bears could again pose a strong challenge.
Contrary to this assumption, if the price continues lower and falls below the 20-day EMA, the pair may fall towards the 50-day SMA ($0.08) and later to $0.07.
Matic/USDT
Polygon’s (MATIC) shallow bounce off its $1.05 breakout level on January 30 shows weak demand at lower levels. Bears will try to push the price down to the 20-day EMA ($1.03).
Buyers need to defend the 20-day EMA to keep the uptrend intact. If the price rises and rises above $1.13, buying may increase and the MATIC/USDT pair may attempt to rise towards $1.30.
Conversely, if the price plunges below the 20-day EMA, it could be trapped in a number of aggressive bull markets that may have had a long run above $1.05. This could lead to a longer liquidation period and the pair could fall towards its 50-day SMA ($0.90).
Related: Bitcoin advocate Najah Roberts explains why BTC is a tool for empowerment.
LTC/USDT
Litecoin (LTC) rebounded from the 20-day EMA ($88) on January 30, indicating that the upward trend remains intact and lower levels are attracting buyers.
A rising 20-day EMA and RSI in positive territory indicate an advantage for buyers. The LTC/USDT pair may initially reach $100, at which point the bears may again encounter strong resistance. If the bulls do not give up much ground at this level, the pair could continue its march north towards $107.
The first sign of weakness would be a breakout and close below the 20-day EMA. This could mean profit booking for short-term traders. The pair could then fall to $81.
DOT/USDT
Over the past few days, bullishness has pushed Polkadot (DOT) above the resistance level several times, but it has failed to hold higher. This shows that the bears are fiercely defending this level.
Sellers will try to increase their control by driving the price below the 20-day EMA ($6.04), while bulls will attempt to protect the support line. If the bears come out on top, the DOT/USDT pair could initiate a deeper correction towards $5.50 and then towards the 50-day SMA ($5.24).
If the bulls successfully defend the 20-day EMA, a bounce above the overhead resistance at $6.84 could increase their chances. The pair could then accelerate to $8 with a brief pause at $7.42.
AVAX/USDT
Avalanche (AVAX) fell from the $22 horizontal resistance on January 28th and fell to the breakout level from the resistance level on February 1st.
The 20-day EMA ($17.87) is just below resistance and therefore likely acts as strong support. If the price bounces from this support zone, it means sentiment is positive and traders are buying on the dip. The bulls will then attempt to push the AVAX/USDT pair above $22 and start a rally towards $30.
The bears likely have other plans. They will try to drive the price below the 20-day EMA. If that happens, the pair could slide towards its 50-day SMA ($14.41).
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.
