Price Analysis 2/15: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, SOL, DOT, LTC
Bitcoin and some altcoins have rebounded sharply from support levels, which could be a sign that traders are buying recent market declines.
Bitcoin (BTC) is leading the cryptocurrency market to recovery. The US Consumer Price Index (CPI) was slightly higher than expected in January, but that did not dampen the enthusiasm of optimistic cryptocurrency traders.
A positive reaction to seemingly negative data is a sign that sentiment is bullish and traders are looking for buying opportunities.
However, some analysts are cautious due to the strength of the US dollar index (DXY). They believe that DXY’s continued rise could limit the cryptocurrency’s upside.
Typically, a prolonged downtrend is followed by a base formation. At this stage, some analysts remain skeptical about the rally, but the price action continues to surprise them. Data is important, but short-term traders need to focus more on price action and devise appropriate strategies.
What are the critical levels to watch out for? Let’s study the top 10 cryptocurrencies chart to find out.
BTC/USDT
Bitcoin rebounded from the $21,480 level on February 14 and reached the 20-day exponential moving average ($22,235). This shows that buyers are trying to prevent a correction near the 38.2% Fibonacci retracement level of $21,228. Shallow declines indicate that traders are buying small dips.
If the bears want to strengthen their positions, they will need to aggressively defend the $22,800 level and push the price below $21,228. Doing so could allow the BTC/USDT pair to extend the range of corrections towards the 50% retracement level of $20,294. The deeper the correction, the longer it may take for the next upward leg to begin.
Conversely, if a bull market develops and the price holds above $22,800, the pair could rise to $23,500 and then to $24,255. Bears are expected to fiercely defend this area. If the price declines, the pair could remain in a range between $21,228 and $24,255 for several days.
ETH/USDT
Ethereum (ETH) continues to trade between moving averages. A significant bounce in the 50-day simple moving average ($1,483) on February 14 indicates lower levels of demand.
A flat 20-day EMA ($1,569) and RSI near the midpoint suggest a balance in supply and demand. A move above the 20-day EMA will favor the buyers. The ETH/USDT pair could then retest solid overhead resistance at $1,680.
Conversely, if the price declines from current levels and plunges below the 50-day SMA, it would be a favorable signal for the bears. That could trigger a deeper correction towards the next strong support at $1,352.
BNB/USDT
BNB (BNB) fell below its 50-day SMA ($293) on February 13, but bears were unable to take advantage of this. The long tail of the day’s candle shows a strong buying trend around $280.
The 20-day EMA has started to decline and the RSI is in negative territory, indicating that the bears have a slight advantage. The next $280 drop increases the risk of a breakdown. Below this support, the BNB/USDT pair may extend its decline towards $260.
If the price rises from current levels and rises above the 20-day EMA, it would indicate solid demand at lower levels. This could increase the likelihood of a rebound to the neckline of the bullish inverted head and shoulders (H&S) pattern.
XRP/USDT
XRP (XRP) jumped from strong support at $0.36 on February 14 and reached its 50-day SMA ($0.38). Bears will likely sell the relief rally to the moving average.
If the price falls from current levels, it means bears are selling off the rally. This could lead to a retest of support at $0.36. This is an important level that bulls must defend because if a crack occurs, the XRP/USDT pair will form a head and shoulders pattern. The target price for this bearish setup is $0.29.
Alternatively, if the price rises above the moving average, it indicates that the pair may oscillate between $0.42 and $0.36 for some time.
ADA/USDT
Cardano (ADA) attracted solid buying at its 50-day SMA ($0.34), as seen in the long tail of the February 13 candle. The bulls had another strong rally above the 20-day EMA ($0.38) on February 14th.
If the price remains above the 20-day EMA, bulls will attempt to pull the ADA/USDT pair above the neckline of the inverted head and shoulders pattern. If successful, the pair could gain momentum and surge above the immediate resistance of $0.44. The next major hurdle is $0.52, which if surpassed could extend the rally to the pattern target of $0.60.
Conversely, if the price declines and falls below the 20-day EMA, it means the bears are attempting a bounce. To gain the upper hand, the price needs to go below $0.34.
DOJI/USDT
Over the past few days, repeated attempts by the bears to keep Dogecoin (DOGE) below its 50-day SMA ($0.08) have failed. This shows strong demand at lower levels.
Now the bulls will try to hold the price above the 20-day EMA ($0.08). If that happens, the DOGE/USDT pair could rise to the overhead resistance area between $0.10 and $0.11. The bears are expected to defend the area with all their might.
Another possibility is for the price to move below the 20-day EMA. If that happens, it would suggest that the bears are trying to turn the 20-day EMA into resistance. The pair could then fall to its 50-day SMA and eventually to strong support at $0.07.
Matic/USDT
The bears took Polygon (MATIC) below the 20-day EMA ($1.19) on February 13 and February 14, but failed to stay low. This shows that the bull is not willing to give up his advantage.
If the bulls push the price above the downtrend line, the MATIC/USDT pair could attempt a rally up to $1.35. This move will make the upward movement more sustainable. If $1.35 expands, the rally could extend to $1.75.
Instead, if the price drops sharply away from the downtrend line, this means that the bears are selling on any small rallies. The next decline below the 20-day EMA could open the door for a decline to $1.05.
Related: 3 Reasons Why Binance’s BNB Token Risks a Further Fall by March
SOL/USDT
Solana (SOL) has been stuck between its moving averages since February 9, suggesting indecision between bullish and bearish trends.
The flat 20-day EMA ($22.21) and RSI at its midpoint also offer no clear advantage to either bulls or bears. This indicates that the SOL/USDT pair may fluctuate between the downtrend line and the 50-day SMA for some time.
If the price falls below the 50-day SMA, selling may intensify and the pair is likely to fall towards $15. Conversely, if the bulls rise above the downtrend line, the pair could complete a 100% retracement and rise to $39.
DOT/USDT
Bears attempted to push Polkadot (DOT) below its 50-day SMA ($5.76) on February 13 and February 14, but the long tail of the candlestick shows strong buying at the lower level.
Bulls will take advantage and try to push the price above the 20-day EMA ($6.32). If successful, the DOT/USDT pair could begin its journey towards overhead resistance at $7.25. This forms an inverse H&S pattern, completing above the break above $7.25. The pattern target for this reversal setup is $10.28.
Instead, if the price declines and falls below the 50-day SMA, it means that the bears have turned the 20-day EMA into resistance. That could trigger a deeper correction towards $4.35.
LTC/USDT
The long tail of the February 13 Litecoin (LTC) candlestick shows bulls buying the dips all the way to the 50-day SMA ($86). Buyers continued buying on February 14th, passing the 20-day EMA ($93) hurdle.
The price remains between $102.53 up and $88 down. A flat 20-day EMA and RSI above 57 indicate range-limiting action is possible in the near term.
A sideways move near the local high is a positive sign as it suggests that stronger hands are continuing to hold positions in anticipation of a resumption of the uptrend. A break above $102.53 could pave the way for a rise to $115.
This positive view could be invalidated in the near term if the price declines and plunges below $88. The pair could then fall to $81 and later to $75.
The views, thoughts and opinions expressed herein are those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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.
