Risky assets have experienced a winning streak over the past few days. The S&P 500 Index has achieved five consecutive weeks of gains, while Bitcoin (BTC) has also seen a rise of over 13% this week, indicating strong buying activity from bullish investors.
According to data from BitMEX Research, there was a total of $2.7 billion in inflows into nine Bitcoin exchange-traded funds (ETFs) on February 9th. Meanwhile, outflows from the Grayscale Bitcoin Trust (GBTC) reduced to $51.8 million. As a result, the total assets under management of these ETFs have skyrocketed to $10 billion.
Bitcoin’s significant surge has boosted positive sentiment in the market. However, Keith Alan, the CEO and co-founder of Material Indicators, cautioned in a post on X (formerly Twitter) that Bitcoin is likely to encounter strong resistance between its current level and $50,000.
While Bitcoin continues to dominate the spotlight, certain altcoins have started to show signs of movement. Let’s take a look at the charts of the top 5 cryptocurrencies that have the potential to outperform in the near future.
Bitcoin price analysis:
Bitcoin’s rally has reached a strong overhead resistance at $48,970, where a fierce battle between the bulls and bears is expected.
The 20-day exponential moving average ($44,164) and the relative strength index (RSI) in the overbought zone suggest that the path of least resistance is upwards. If the bulls manage to push the price above $48,970, the BTC/USDT pair could accelerate towards $52,000. Breaking this level could lead to a rally all the way up to $60,000.
On the other hand, if the price sharply declines from the current level, it may indicate a consolidation phase between $44,700 and $48,970 for a few days. A break below the 20-day EMA would weaken the short-term trend.
The sharp upward movement has pushed the RSI into the overbought zone on the 4-hour chart, suggesting a possible correction in the near future. To confirm this, the bears would need to push the price below the 20-EMA, signaling a deeper pullback towards the 50-simple moving average. However, if the price bounces back from the current level or rebounds off the 20-EMA, it would indicate strong buying interest on dips and could result in a breakout above $48,970 towards the next major resistance at $52,000.
Immutable price analysis:
Immutable (IMX) broke above the resistance level of $2.60 on February 10th, indicating a continuation of the uptrend.
However, the bears are unlikely to give up easily and will try to pose a strong challenge at the $2.85 level. If the price turns down and breaks below $2.60, it would suggest a weakening of the bullish momentum. In such a scenario, the IMX/USDT pair could drop to the 20-day EMA ($2.24). To signal a comeback, the bears would need to push the price below the moving averages.
Alternatively, if the bulls manage to hold their ground, it would indicate that they are maintaining their positions in anticipation of a breakout. Breaking the $2.85 resistance could lead to a climb towards $3 and potentially $3.50.
The 4-hour chart shows that the pair is currently in a strong uptrend. The 20-EMA is a crucial support level to watch. If the price bounces back from the current level or rebounds off the 20-EMA, it would suggest that the sentiment remains bullish and that traders see dips as buying opportunities. A break and close above $2.85 would confirm the bulls’ dominance and could result in a rise to $3. However, a break below the uptrend line would indicate short-term bearish control, with the pair potentially falling to $15.60.
Kaspa price analysis:
The bulls successfully defended the psychological support level of $0.10 during the correction in Kaspa (KAS), indicating buying interest at lower levels.
After breaking above the moving averages on February 7th, the KAS/USDT pair reached a strong overhead resistance near $0.15. Sellers will likely try to halt the upward movement at this level.
The first support level on the downside is $0.13. If this level holds, the chances of a breakout above $0.15 increase, with the bulls aiming to resume the uptrend. There is a minor resistance at $0.16, but breaking it could push the pair towards $0.20.
However, a break and close below $0.13 could keep the pair range-bound between $0.10 and $0.15 for some time.
The 4-hour chart indicates a strong uptrend for the pair. The 20-EMA is a crucial support level to watch. If the price bounces back from the current level or rebounds off the 20-EMA, it would indicate that the bulls remain interested in buying on pullbacks. A break and close above $0.15 would mark the start of the next leg of the uptrend. Conversely, a break below the uptrend line would indicate short-term bearish control, potentially leading to a fall to $0.10.
Celestia price analysis:
Celestia (TIA) has been in an uptrend for several days, but the bulls are facing strong resistance at the $20.40 level.
The uptrending moving averages and the positive RSI indicate that the buyers are in control. If the bulls manage to hold their ground near the current level, it would increase the chances of a rally above $20.40. In that case, the TIA/USDT pair could move towards its next target of $25.
On the other hand, if the price turns down from the current level and breaks below the 20-day EMA ($18.01), it would indicate that the bulls are starting to exit their positions. A break below the 50-day SMA ($16.16) would tilt the short-term trend in favor of the bears.
The 4-hour chart suggests that profit booking has occurred after the pair failed to maintain its position above the overhead resistance of $20.40. This has pulled the price below the 20-EMA, signaling the start of a pullback to the uptrend line.
If the price rebounds off the uptrend line, the bulls will once again attempt to overcome the obstacle at $20.40. Breaking this level could push the pair towards $21.14 and potentially the next leg of the upward move to $25.
However, a break below the uptrend line would indicate that the bears have gained control in the short term, with the pair potentially falling to $15.60.
Stacks price analysis:
Stacks (STX) has risen above the $1.78 resistance level after a brief correction, indicating strong demand at lower levels.
The 20-day EMA ($1.62) has started to turn upwards, and the RSI is approaching the overbought zone, suggesting that the bulls are in control. The STX/USDT pair could reach the overhead resistance at $2.06, which is likely to act as a significant hurdle. If buyers manage to overcome this resistance, the pair could surge to $3.
The 20-day EMA is an important support level to monitor on the downside. The bulls are expected to vigorously defend this level, but a break below it could push the pair to $1.45.
The 4-hour chart shows that the bulls are buying the dips to the 20-EMA. However, they are likely to face strong resistance from the bears in the $2 to $2.06 zone. If the price turns down from this overhead zone but finds support at the 20-EMA, it would increase the likelihood of a breakout above the resistance level. The pair could then continue its uptrend.
The first sign of weakness would be a break and close below the 20-EMA, indicating that the bulls are losing control. In that case, the pair may drop to the 50-SMA.
Please note that this article does not provide investment advice or recommendations. Every investment and trading decision carries risks, and readers should conduct their own research before making any decisions.