Bitcoin (BTC) is currently trading in a range and is expected to end the week with a slight gain of around 2%. DecenTrader, a trading suite, predicts that this sideways price action may continue for another month until a buying surge occurs in anticipation of the halving in April.
Although spot Bitcoin exchange-traded funds (ETFs) have opened the door for institutional investments, the inflows have been slow due to thorough due diligence by large trading platforms, according to a Bloomberg report.
One positive development in the short term is that outflows from Grayscale Bitcoin Trust (GBTC) have been slowing down. BitMEX Research data shows that GBTC outflows have hovered around $200 million since January 29, down from a high of $640 million on January 22.
Bitcoin’s consolidation is a positive sign that may attract traders to alternative coins. Let’s take a look at the charts of the top 5 cryptocurrencies that may outperform in the near future.
Bitcoin’s price analysis:
Bitcoin has been trading above the 20-day exponential moving average ($42,471) for the past few days, but the bulls have failed to break the overhead resistance at $44,700.
The weak rebound from the 20-day EMA suggests a lack of demand at higher levels. If the price falls below $41,394, it will indicate that the BTC/USDT pair may consolidate between $44,700 and $37,980 for a few more days.
The $44,700 resistance level is crucial. A break and close above this level will signal the return of the bulls, paving the way for a potential rally towards the psychologically important level of $50,000.
The 4-hour chart shows that both moving averages have flattened out, and the RSI is near the midpoint, indicating a balance between buyers and sellers. If the price falls below the 50-simple moving average, the advantage will shift in favor of the sellers, and the pair may drop to $41,394.
To regain control, the bulls will need to push the price above the $44,000 to $44,700 resistance zone. If successful, the pair could rise to $47,000. However, this level is likely to act as a strong obstacle, and the pair may dip back to $44,700. If the bulls manage to turn this level into support, the pair may resume its uptrend and surge towards $50,000.
Chainlink’s price analysis:
Chainlink (LINK) broke above the overhead resistance of $17.32 on February 2, indicating a resumption of the uptrend.
The 20-day EMA ($15.80) has started to turn up, and the RSI is near the overbought zone, suggesting that the bulls are in control. There is a minor resistance at $19.54, but if crossed, the LINK/USDT pair could reach the pattern target of $21.79.
To prevent the upside, bears need to push the price back below the breakout level of $17.32. That would indicate aggressive selling at higher levels and may lead to a fall towards the 20-day EMA.
The 4-hour chart shows that the bulls are trying to establish support at the $17.32 level. The rising moving averages and the positive RSI indicate that the bulls have the upper hand. A break and close above $18.88 will confirm a new upward trend towards $21.38.
On the other hand, if the price falls below $17.32, it will suggest that the bulls are losing control, and the pair may drop to the 50-SMA and remain range-bound for a while.
Internet Computer’s price analysis:
Internet Computer (ICP) bounced off the 50-day SMA ($11.63) on February 1, indicating strong support from the bulls.
The long wick on the February 3 candlestick shows that bears are attempting to halt the upward move near $14. However, the bulls have not given up much ground, increasing the possibility of a break above $14. If successful, the ICP/USDT pair may attempt a rally towards $16.30.
This bullish view will be invalidated if the price falls below the 50-day SMA, potentially extending the drop to the breakout level of $9.36, where buyers are likely to step in.
The 4-hour chart shows that the pair is trading within the range of $9.36 and $14. The pair bounced off the 20-EMA, indicating buying interest at lower levels. The next resistance on the upside is at $14.
If buyers overcome this resistance, the pair could rally to $16.30 and eventually reach the pattern target of $18.64. However, a slide below $11.20 would indicate that the pair may continue to trade within the range for some time.
Render’s price analysis:
Render (RNDR) broke above the $4.40 resistance on January 30, and the bulls successfully defended the pullback at the 50-day SMA ($4.26) on January 31.
There is a minor resistance at $5.07, but it is likely to be crossed. The RNDR/USDT pair may then retest the high at $5.28. If buyers push the price above this resistance, the pair could accelerate towards $6.60.
If the price sharply turns down from $5.28, it will indicate bearish activity at higher levels. The pair may then drop to the 50-day SMA. A break below this level would suggest a short-term trend change, potentially leading to a slide towards $4.
Both moving averages are sloping up, and the RSI is in positive territory on the 4-hour chart, indicating a short-term trend in favor of buyers. The pair is likely to climb to $5.07 and then to $5.28.
The first sign of weakness would be a break and close below the 20-EMA. If that happens, the pair may drop to the breakout level of $4.40. This level is important for the bulls to defend, as a break below it could signal a trend change.
Sui’s price analysis:
Sui (SUI) broke above the overhead resistance of $1.50 on January 29, but the bulls were unable to sustain the breakout, indicating a potential comeback by the bears.
The SUI/USDT pair bounced off the 20-day EMA ($1.34), suggesting that sentiment remains positive and traders see dips as buying opportunities.
To maintain momentum, buyers will need to push the price above $1.65. If successful, the pair may rise to $2. This level may act as a significant hurdle, but if surpassed, the rally could reach $2.64.
On the downside, bears will need to push the price below the 20-day EMA to gain the upper hand. The pair may then fall to the 50-day SMA ($1.04).
The 4-hour chart shows that the price has broken above the $1.50 level. If buyers can sustain the breakout, the pair may reach $1.57 and subsequently $1.65. The bears will try to defend this level, but if the bulls prevail, the pair may continue its uptrend.
However, if the price turns down from the overhead resistance and falls below $1.38, it will indicate bearish control. The pair could then resume its correction towards $1.15 and potentially $1.
Please note that this article does not provide investment advice or recommendations. It is important to conduct your own research before making any investment or trading decisions.