Bitcoin’s market capitalization reached $1 trillion on February 14th, driven by strong demand from newly launched spot Bitcoin exchange-traded funds (ETFs). Inflows into these ETFs exceeded $600 million on February 13th alone. The ETFs purchased ten times more Bitcoin than what miners produced on February 12th. Anthony Pompliano, founder of Pomp Investments, stated in an interview that approximately $200 billion worth of Bitcoin is tradable, as 80% of the total supply has been dormant. Pompliano also mentioned that the Bitcoin ETFs have consumed 5% of Bitcoin’s entire tradable supply within 30 days of their launch.
The surge in Bitcoin’s price led to a Crypto Fear and Greed Index score of 79 on February 13th, indicating “extreme greed.” The last time the index reached this level was in mid-November 2021 when Bitcoin hit its all-time high of $69,000. During strong bull phases, the sentiment can remain in the extreme greed zone for an extended period, but as the price rises, the risk of a correction increases.
Traders should closely monitor the technical indicators of Bitcoin to identify a possible reversal in the near future. Will Bitcoin continue its rally above $52,000, or will traders take profits and initiate a short-term correction? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin’s price analysis:
After breaking through the $48,970 resistance on February 12th, Bitcoin started the next leg of its uptrend. The bears attempted to push the price below the breakout level, but strong buying at lower levels is evident from the long tail on the February 13th candlestick. The 20-day exponential moving average indicates an advantage for buyers, but the overbought levels on the relative strength index suggest that the BTC/USDT pair may have surged too quickly. This could lead to a short-term correction or consolidation in the coming days. The $52,000 level may pose a significant challenge for the bulls. If the price fails to break above this resistance and falls below $48,970, it could indicate the formation of a short-term top and a potential slide towards the 20-day EMA. On the contrary, if buyers push the price above $52,000, the pair could climb to $60,000.
Ether’s price analysis:
Ether gained momentum after breaking above the $2,400 resistance, indicating strong buying by the bulls. On February 14th, the bulls pushed the price above the $2,717 resistance, signaling a resumption of the uptrend. If the breakout is sustained, the ETH/USDT pair could surge towards the psychologically important level of $3,000. However, this level might see profit booking by short-term traders. To weaken the bulls, the bears will need to sustain the price below $2,600. In that case, the pair may fall towards the 20-day EMA.
Solana’s price analysis:
Solana’s retest of the breakout level at $107 was successfully defended by the bulls, indicating a positive sentiment. There is a minor resistance at $117, but it is likely to be surpassed. If that happens, the SOL/USDT pair could rise to the strong overhead resistance at $127. A breakthrough at this level could pave the way for a rally towards the pattern target of $135. However, a break and close below the moving averages would indicate selling at higher levels and may trap aggressive bulls. The pair could then decline towards the solid support at $80.
BNB’s price analysis:
Buyers showed interest in BNB as they purchased the dip to the 20-day EMA ($314) on February 12th. The upward sloping moving averages and the RSI near the overbought zone suggest that the path of least resistance is to the upside. The BNB/USDT pair could reach the overhead resistance at $338, and if that level is breached, it could accelerate towards $360 and subsequently $400. However, a sharp downturn from $338 would indicate bearish activity at higher levels. A break below the moving averages could trigger a deeper pullback towards the essential support at $288.
XRP’s price analysis:
XRP continues to experience a battle between the bulls and bears near the 20-day EMA ($0.52), indicating uncertainty about the next directional move. The flat 20-day EMA and the RSI near the midpoint do not provide a clear advantage to either buyers or sellers. If the price falls below $0.50, the advantage will shift in favor of the sellers, and the XRP/USDT pair could decline towards the vital support at $0.46. On the upside, the bulls need to drive and sustain the price above the stiff overhead resistance at the downtrend line to gain control. The pair could then rally towards $0.67.
Cardano’s price analysis:
Cardano broke above the descending channel pattern on February 12th but has struggled to initiate an upward move. The upward sloping 20-day EMA and the RSI in positive territory give a slight edge to the bulls. If the price maintains above $0.57, the ADA/USDT pair could jump to $0.60 and then $0.68. However, a turn down below the moving averages could trap aggressive buyers and lead to a drop towards the strong support at $0.46.
Avalanche’s price analysis:
Avalanche has faced selling pressure at $42, but the bulls have not given up much ground to the bears, indicating anticipation of another leg higher. The rising 20-day EMA and the RSI in positive territory suggest the possibility of a break above $42. If that occurs, the AVAX/USDT pair could surge towards $50. The first support on the downside is at the 20-day EMA, and a break below this level could suggest a reduction in buying pressure. The pair may then decline towards the crucial support at $32.
Dogecoin’s price analysis:
Dogecoin has been trading near the moving averages, indicating a balance between buyers and sellers. The flat 20-day EMA and the RSI just above the midpoint do not provide a clear advantage to either bulls or bears. If buyers can overcome the downtrend line obstacle, it may open the doors for a rally towards the resistance zone of $0.10 to $0.11. On the other hand, if the price sinks and sustains below the uptrend line, the advantage will shift in favor of the bears, and the DOGE/USDT pair could decline towards $0.07 and later $0.06.
Chainlink’s price analysis:
Chainlink has pulled back during its uptrend, indicating profit booking by short-term traders near $20.85. During strong uptrends, pullbacks usually do not last for more than three days as bulls buy every minor dip. If the price breaks above $20.85, the LINK/USDT pair could surge towards the pattern target of $21.79. However, the bears will attempt to pull the price below the 20-day EMA, which would be the first sign of weakness. In that case, the pair may retest the breakout level of $17.32.
Polkadot’s price analysis:
The bulls finally pushed Polkadot above the 50-day SMA ($7.28) on February 13th after facing resistance for several days. The rise above the 50-day SMA increases the likelihood of the failure of the H&S pattern and may attract buyers aiming to drive the price towards $8.58. This level is expected to see strong selling by the bears. However, if the bears manage to sink and sustain the price below the 20-day EMA, the DOT/USDT pair could plummet towards the strong support at $6.
This article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment decisions.