Bitcoin (BTC) surged to a near $55,000 high on Feb. 26, driven by continued demand from spot Bitcoin exchange-traded funds. According to CoinShares data, institutional investors invested $570 million into Bitcoin investment products in the past week. Since their launch, Bitcoin ETFs have seen over $5 billion in net assets under management (AUM), surpassing gold ETFs which saw outflows of $3.6 billion during the same period. Analysts predict that Bitcoin ETFs will overtake gold ETFs in AUM within the next two years.
Bitcoin’s strength is expected to positively impact the cryptocurrency market, benefiting select altcoins. However, as Bitcoin approaches its all-time high, there is a possibility of a pullback as bears attempt to halt the rally.
S&P 500 Index:
The S&P 500 Index broke above the 5,048 resistance on Feb. 22, indicating a continuation of the uptrend. The moving averages favor buyers, but the negative divergence on the relative strength index (RSI) suggests a potential loss of momentum. The key support to watch is the 20-day exponential moving average (4,983), a break below which could lead to a decline to the 50-day simple moving average (4,857). Conversely, if the index continues to rise, it would invalidate the negative divergence and potentially reach 5,200.
U.S. Dollar Index:
The U.S. Dollar Index (DXY) dropped below the 20-day exponential moving average (103) on Feb. 22, but aggressive buying at the neckline of the inverse head-and-shoulders pattern prevented further decline. The flat 20-day EMA and RSI near the midpoint do not indicate a clear advantage for either bulls or bears. If the price rises above the 20-day EMA, the bulls will attempt to push the index above 105, potentially leading to a rally to 107. On the other hand, if the price continues to decline, it could suggest a bearish comeback, with the index potentially falling to the 50-day SMA (103) and entering a range-bound phase.
Bitcoin:
Bitcoin broke above the $53,000 resistance on Feb. 26 after consolidating for several days, indicating that bulls are still in control. If the price sustains above $53,000, the BTC/USDT pair could gain momentum and reach $60,000, where bears are expected to defend. On the downside, there is support at $50,500, the 20-day EMA ($50,075), and the breakout level of $48,970. A deeper correction would require a break below $48,970 and a decline to the 50-day SMA ($45,734).
Ether:
Ether (ETH) surpassed the $3,036 resistance on Feb. 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 holds above $3,000, there is a higher chance of a rally to $3,300 and $3,540. However, a break and close below the 20-day EMA ($2,823) would indicate profit booking and potentially lead to a drop to $2,717 and the 50-day SMA ($2,546).
BNB:
BNB is attempting to continue its uptrend, but the overbought level on the RSI suggests strong resistance near $400. If the price rebounds off the 20-day EMA ($356), it would indicate bullish sentiment and increase the chances of a break above $400. The BNB/USDT pair could then rally to $460. Conversely, a break below the 20-day EMA would suggest aggressive profit booking by bulls and potentially lead to a decline to the 50-day SMA ($323), favoring bears.
XRP:
XRP has been trading near the moving averages, indicating uncertainty about its next move. The flat moving averages and RSI near the midpoint suggest a possible range-bound action. The range boundaries could be $0.48 on the downside and $0.58 on the upside. To indicate the end of the correction, buyers need to push and maintain the price above $0.58. The XRP/USDT pair could then attempt a rally to $0.67 and $0.74. On the downside, support is at $0.48 and $0.46.
Solana:
Solana is finding support at the 50-day SMA ($100), indicating that bulls are trying to prevent further decline. The flat moving averages and RSI near the midpoint suggest a range-bound action. Buyers need to push and maintain the price above the downtrend line to initiate a rally to the resistance zone between $119 and $127. If this zone is surpassed, the upswing could reach $135. Conversely, a downturn from the current level or the downtrend line, followed by a break below the 50-day SMA, would suggest selling on rallies by bears. The SOL/USDT pair could then drop to $80.
Cardano:
Cardano managed to hold above the 20-day EMA ($0.58), indicating a positive sentiment. The rising 20-day EMA and positive RSI give a slight edge to the bulls. Buyers will aim to push the price to the resistance zone between $0.64 and $0.68. A sharp downturn below the 20-day EMA would indicate a loss of bullish momentum and potentially lead to a correction to the 50-day SMA ($0.54).
Avalanche:
Avalanche bounced off the 50-day SMA ($36.12) on Feb. 24, indicating buying interest at lower levels. The flat moving averages and RSI near the midpoint do not provide a clear advantage for either buyers or sellers. A break below the 50-day SMA could lead to a decline to $32, while a break and close above the 20-day EMA ($37.84) could open the doors for a potential rally to $42. Overcoming this resistance would confirm the completion of an inverse head-and-shoulders pattern.
Dogecoin:
The breakout level from the triangle was defended by bulls, but Dogecoin failed to surpass the $0.09 resistance. This suggests a lack of demand at higher levels, and bears may attempt to pull the price below the moving averages. If they succeed, the DOGE/USDT pair could drop to the uptrend line and potentially to $0.07. For an upward move, the price needs to be sustained above $0.09, which would likely lead to a surge to the $0.10 to $0.11 resistance zone.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.