Bitcoin (BTC) is currently facing resistance near the $52,000 mark, which suggests the possibility of a short-term correction. On February 21, there were net outflows of approximately $36 million from Bitcoin exchange-traded funds (ETFs), but on February 22, there were net inflows of about $251 million into the ETFs.
Some analysts believe that the markets may experience a pullback before the halving event in April. Trader and analyst Rekt Capital noted that Bitcoin’s current bull phase is similar to the bull runs of 2016 and 2020, suggesting the possibility of a pre-halving retrace followed by a post-halving reaccumulation period.
Bitcoin’s hesitation to continue its rally has led to profit-booking in certain altcoins. A corrective phase is actually positive for the long-term health of the markets as it helps shake out weak investors and allows stronger investors to buy at lower levels.
Now let’s take a look at the support levels to watch for Bitcoin and altcoins. Analyzing the charts of the top 10 cryptocurrencies can provide some insights.
Bitcoin’s price analysis shows that it faced resistance at $52,000, and if the bears manage to push the price below $50,625, it could drop to the strong support level at $48,970. On the other hand, a break above $52,000 could lead to a further rally towards $60,000.
Ether’s price analysis reveals that it attempted to break above the psychological resistance of $3,000 but was unsuccessful. If the price rebounds from the breakout level of $2,717, it could indicate bullish sentiment and a potential rally towards $3,300. However, a break below $2,717 could delay the start of the next uptrend.
BNB’s price analysis shows that it resumed its uptrend after breaking above the $367 resistance, with the next target at $400. If minor dips are being bought and the price remains above $368, it could rally towards $460. However, a drop below $368 could lead to a correction towards the 50-day SMA at $318.
Solana’s price analysis suggests that it bounced off the 50-day SMA but couldn’t overcome the 20-day EMA. A drop below the 50-day SMA could lead to a descent towards $93 and $80, while a breakout above the downtrend line could result in a rally towards $126.
XRP’s price analysis indicates that it formed an inside-day candlestick pattern but eventually moved downwards, suggesting bearish pressure. A drop to the support zone between $0.48 and $0.46 could keep the pair range-bound, while a break above $0.57 could lead to a rally towards $0.67 and $0.74.
Cardano’s price analysis shows that it’s trying to find support at the 20-day EMA, but the bears are maintaining selling pressure. A drop below the 50-day SMA could lead to a decline towards the vital support at $0.46, while a rebound from the 20-day EMA could result in an attempt to break the resistance zone between $0.64 and $0.68.
Avalanche’s price analysis reveals that the bears defended the 20-day EMA, leading to a drop below the 50-day SMA. The pair could reach the support at $32, but a bounce from this level could keep it oscillating between $32 and $42. A break above the 20-day EMA could indicate strong buying at lower levels and a potential rally above $42.
Dogecoin’s price analysis shows that the bulls are trying to keep it above the symmetrical triangle, while the bears are attempting to push it below. A rebound from the current level could lead to an uptrend towards the $0.10 to $0.11 resistance zone. However, a drop below the 50-day SMA could favor the bears.
Chainlink’s price analysis suggests that the bears are trying to pull the price to the breakout level of $17.32. A rebound from this level could indicate support and a potential retest of $20.85, while a break below the 50-day SMA could lead to a deeper correction.
Polkadot’s price analysis indicates that the bulls are trying to keep it within the ascending channel pattern, while the bears are attempting to break below it. A drop below the 50-day SMA could result in a decline towards $6.50, while a bounce from the current level could keep it within the channel.
It’s important to note that this article does not provide investment advice or recommendations. It’s always crucial to conduct your own research before making any investment decisions.