Bitcoin (BTC) has been relatively calm since the launch of spot Bitcoin exchange-traded funds (ETFs), but that hasn’t stopped investors from flocking to certain ETFs. According to Eric Balchunas, senior Bloomberg ETF analyst, BlackRock’s iShares Bitcoin Trust ETF has surged into the top 5 ETFs in terms of year-to-date flows.
The introduction of spot Bitcoin ETFs has caused investors to shift their focus from gold to Bitcoin, as per Cathie Woods, CEO of ARK Invest. During a YouTube chat with chief futurist Brett Winton, Woods stated that Bitcoin is likely to act as a “risk-off asset” in the next banking crisis.
The recent 60% decline in New York Community Bancorp (NYCB) stock since January 30 has brought back memories of the banking crisis experienced a year ago. This decline is particularly noteworthy for the crypto community because NYCB had acquired the failed crypto-focused Signature Bank in 2023.
Could this developing banking crisis boost Bitcoin’s price in the near future? Will altcoins follow suit? Let’s examine the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis:
Bitcoin has been trading within a narrow range in recent days, indicating a battle between buyers and sellers. The slight advantage currently lies with the bulls, as the price has remained above the 20-day exponential moving average ($42,577) for several days. To build positive momentum, buyers will need to overcome the obstacle at $44,700. If successful, the BTC/USDT pair could soar to the psychological resistance level at $50,000. On the other hand, a break below the 20-day EMA would give an advantage to the bears, potentially leading to a decline to $40,000 and eventually $37,980, which is expected to attract strong buying interest.
Ether Price Analysis:
Ether (ETH) has surged above the moving averages on February 6, suggesting that the bulls are attempting to take control. The price has reached a strong overhead resistance level at $2,400. If the bears fail to defend this level, the ETH/USDT pair could rise to $2,600 and then $2,717. Conversely, a sharp downturn and a break below the uptrend line would indicate strong resistance at $2,400. In this case, the pair may trade within the $2,100 to $2,400 range for a few more days.
BNB Price Analysis:
In the past few days, bulls have managed to keep BNB (BNB) above the 50-day simple moving average ($303), indicating a balanced market. The 20-day EMA ($303) and the RSI near the midpoint do not provide a clear advantage to either bulls or bears. If buyers can push the price above the downtrend line, the BNB/USDT pair could rise to $320 and subsequently $338. Conversely, a break below $296 would favor the bears and potentially lead to a decline to the crucial support level at $288. A breakdown at this level would complete a bearish descending triangle pattern, with the next support at $260.
Solana Price Analysis:
The bulls are struggling to initiate a rebound off the 20-day EMA ($96) in Solana (SOL), indicating a lack of demand at higher levels. The immediate support is at $93, and a break below this level could lead to a fall to the strong support at $80. If the price bounces sharply from $80, the pair may reach the 20-day EMA. A break above this resistance would suggest a consolidation phase between $107 and $80. To regain control, bulls will need to push and maintain the price above $107, which could then lead to a rally to the overhead resistance at $126.
XRP Price Analysis:
Bulls are attempting to hold XRP (XRP) above the $0.50 support, but the weak bounce indicates that bears are still applying pressure. The XRP/USDT pair is likely to break below $0.50, which could trigger the next leg of the downtrend towards the solid support at $0.46. This level has held on two previous occasions, so bulls will likely defend it again. To indicate weakening bearish pressure, buyers need to push and maintain the price above the 20-day EMA. If successful, the pair could attempt a rally to the downtrend line, which is a key level to watch. A break above this line could signal the start of a rally to $0.67.
Cardano Price Analysis:
The failure of bulls to push Cardano (ADA) above the 20-day EMA ($0.50) in recent days has increased selling pressure. The ADA/USDT pair could slide to the strong support at $0.46, where buyers are expected to step in. If the price bounces off $0.46 but fails to break above the 20-day EMA, sentiment remains negative and traders are likely selling on rallies. This increases the chances of a drop to the channel’s support line. However, if the price turns up from $0.46 and breaks above the 20-day EMA, it indicates a bullish comeback attempt. The pair may then surge towards the downtrend line.
Avalanche Price Analysis:
Avalanche (AVAX) attempted a relief rally from the 20-day EMA ($34.49) on February 5, but the long wick on the candlestick suggests that bears are selling at higher levels. In the near term, bears will try to pull the price below the $32 support to gain an advantage. If successful, the AVAX/USDT pair could descend to the support line of the descending channel. On the other hand, if the price turns up and breaks above the downtrend line, it indicates that bulls are back in control. The pair could rally to $44 and then to the critical resistance at $50.
Dogecoin Price Analysis:
Dogecoin (DOGE) remains trapped between the uptrend line of the symmetrical triangle and the 20-day EMA ($0.08). The downsloping 20-day EMA and the negative RSI give the bears a slight advantage. A drop below the uptrend line could push the DOGE/USDT pair towards $0.07. This level is likely to attract buyers, but if bulls fail to push the price back into the triangle, the likelihood of a drop to $0.06 increases. On the other hand, if buyers manage to drive the price above the 20-day EMA, the pair could attempt a rally to the downtrend line. To signal an up move to the $0.10 to $0.11 resistance zone, bulls must overcome this hurdle.
Polkadot Price Analysis:
In recent days, bulls have repeatedly failed to push and maintain Polkadot (DOT) above the 20-day EMA ($6.86), indicating strong defense from bears. To strengthen their position, bears will try to pull the price below the nearby support at $6.50. A successful break below this level could trigger a downward move to $6 and then $5.40. Any recovery attempt is likely to face selling at the 20-day EMA. However, if bulls overcome this barrier, the pair may climb to the 50-day SMA ($7.42), signaling a potential trend change in the near term.
Chainlink Price Analysis:
Chainlink (LINK) is in an uptrend, but the price turned down from $19.79 on February 5, indicating strong defense from bears at the $20 level. After a range breakout, the price typically retests the breakout level. The LINK/USDT pair could drop to $17.32, an important level to watch. If the price bounces off this level, it indicates that bulls have turned it into support, increasing the likelihood of the uptrend continuing. The pair may then attempt a rally to $21.79. However, if the price turns down and falls below the 20-day EMA ($16.51), this positive view will be invalidated.
Disclaimer: This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should conduct their own research before making a decision.