The S&P 500 Index experienced a decline of 0.42% last week, breaking its five-week winning streak. This drop was prompted by higher-than-expected inflation reports, which raised concerns about the Federal Reserve delaying rate cuts until later in the year. Previously, there were expectations of a rate cut as early as March.
Interestingly, despite the negative macroeconomic data, Bitcoin’s price did not suffer and actually rallied by approximately 8% to reach $52,137 by the end of the week. This marks the highest weekly close for Bitcoin since November 2021. Although $52,000 has been acting as a resistance level in recent days, the Bitcoin bulls have not rushed to take profits. This indicates that market participants remain optimistic about the long-term prospects of Bitcoin.
Another positive factor for Bitcoin is the slowing outflows from the Grayscale Bitcoin Trust (GBTC). After experiencing outflows of $5.64 billion in January, the outflows have decreased to $1.37 billion in February.
Now, the question is whether Bitcoin can initiate the next leg of its uptrend and propel select altcoins higher. Let’s examine the charts to find out.
S&P 500 Index Price Analysis:
The S&P 500 Index rebounded from the 20-day exponential moving average (4,940) on February 13, indicating an upward trend. However, the bears are putting up a fight to protect the overhead resistance level of 5,048. The negative divergence on the relative strength index (RSI) suggests the possibility of a correction or consolidation in the short term. If the index breaks below the 20-day EMA, it could indicate the start of a deeper correction, potentially dropping to the 50-day simple moving average (4,813) and then to 4,650. On the other hand, a breakout above 5,048 would signal a continuation of the uptrend, with the index potentially surging toward 5,200.
U.S. Dollar Index Price Analysis:
The U.S. Dollar Index (DXY) made an attempt to move upward on February 13 but faced strong selling pressure near 105. The price subsequently turned down and reached the 20-day EMA (104), which is an important support level to monitor. If the price bounces off the 20-day EMA, the bulls will make another attempt to push the index to 106 and then to 107. Conversely, a break below the 20-day EMA would indicate that higher levels continue to attract selling pressure from the bears. In that case, the index may drop to the 50-day SMA (103), which is likely to attract buyers.
Bitcoin Price Analysis:
Bitcoin is currently consolidating in an uptrend, with the bears attempting to halt the rally at $52,000. However, the bulls have been able to maintain pressure and keep the price above this level. When there is a tight consolidation near a crucial resistance, it often results in an upward resolution. If the bulls successfully push and maintain the price above $52,000, it would indicate the start of the next leg of the uptrend. The BTC/USDT pair could then surge toward $60,000. On the other hand, if the bears manage to quickly bring the price below the 20-day EMA ($48,260), it could trigger stop-loss orders from short-term traders and cause the pair to plummet to the 50-day SMA ($44,647).
Ether Price Analysis:
Ether experienced a rebound from $2,717 on February 17, indicating that the bulls are attempting to turn this level into support. The ETH/USDT pair broke above the immediate resistance of $2,868 on February 18, signaling the resumption of the uptrend. Buyers will aim to maintain the momentum and push the price to the psychologically important level of $3,000. However, the recent rally has pushed the RSI above 78, which suggests the possibility of a minor correction or consolidation in the near term. To indicate a short-term top, sellers will need to pull the price below the 20-day EMA ($2,615).
BNB Price Analysis:
BNB has experienced a pullback within its uptrend, likely due to profit booking by short-term traders. In a strong uptrend, pullbacks typically do not last for more than three days. The rising 20-day EMA ($330) and the RSI near overbought territory indicate that the bulls are in control. If the price turns upward and breaks above $367, it would suggest that the uptrend has resumed, potentially leading to a rally towards $400. However, if the price continues to decline and falls below $348, the pair may reach the 20-day EMA, which could attract buyers. If the bears prevail, the pair may drop to the 50-day SMA ($314).
XRP Price Analysis:
XRP has been trading within a range between the downtrend line and the 20-day EMA ($0.54), indicating indecision between the bulls and bears. The gradual upward turn of the 20-day EMA and the rise of the RSI into the positive zone suggest that the bulls have the upper hand. If the price breaks and closes above the downtrend line, it would indicate the end of the correction and the XRP/USDT pair may attempt a rally towards $0.67. On the other hand, a sharp downturn from the downtrend line and a plunge below the 20-day EMA would indicate that bears are still in control. The pair could then descend to $0.50.
Solana Price Analysis:
Solana retraced to the neckline of an inverse head-and-shoulders pattern on February 17, and the bulls successfully defended this level. The upsloping 20-day EMA ($106) and the RSI above 62 indicate that the bulls are in control. There is a minor resistance at $119, but it is likely to be surpassed. If the SOL/USDT pair breaks above $119, it could retest the strong overhead resistance at $127. A successful breakthrough could lead to a rally towards the pattern target of $135. However, if the price turns down and falls below the 20-day EMA, it may result in long liquidations and a drop to the 50-day SMA ($100).
Cardano Price Analysis:
Cardano’s long tail on the February 17 candlestick indicates that the bulls consider dips to the 20-day EMA ($0.56) as buying opportunities. The bulls are aiming to maintain the price above the immediate resistance at $0.62. If they succeed, the ADA/USDT pair could rally to the crucial resistance at $0.68. This level may see a tough battle between the bulls and bears, but if the buyers prevail, the next target would be $0.90. Conversely, a sharp downturn from $0.68 would suggest strong defense from the bears. A break below the 20-day EMA would indicate weakened bullish momentum.
Avalanche Price Analysis:
Avalanche faced rejection near the $42 level on February 15, but the bulls managed to prevent the price from falling below the 20-day EMA ($38.40). The bulls will attempt to overcome the obstacle at $42 once again, and if they succeed, the AVAX/USDT pair will complete an inverse head-and-shoulders pattern. This could lead to a surge towards $50, which may provide strong resistance. On the downside, the 20-day EMA is an important support to watch. A break below this level may push the pair to the 50-day SMA ($36.16), and the price may then oscillate between $32 and $42 for a period of time.
Dogecoin Price Analysis:
The bears attempted to pull Dogecoin back into the symmetrical triangle pattern on February 17, but the bulls defended the level aggressively. The gradual upward turn of the 20-day EMA ($0.08) and the RSI above 63 indicate that the bulls are making a comeback attempt. If the bulls can overcome the resistance at $0.09, the DOGE/USDT pair could climb to the $0.10 to $0.11 resistance zone. However, a downturn and a collapse below the moving averages would suggest that the bears are selling on every minor relief rally. Further selling pressure could intensify if the pair breaks below the uptrend line.
Disclaimer: This article is for informational purposes only and should not be taken as investment advice or a recommendation to buy or sell any cryptocurrency. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.