Between February 12 and February 16, there were inflows of over $2.2 billion into spot Bitcoin exchange-traded funds (ETFs), indicating a strong interest from investors. Bloomberg analyst Eric Balchunas noted that BlackRock’s iShares Bitcoin Trust (IBIT) has seen inflows of $5.2 billion year-to-date, which accounts for 50% of BlackRock’s total net ETF flows out of 417 ETFs.
Bitcoin’s rally continued this week with a 7% increase, but it is facing resistance near $52,000. One concern in the near term is the potential selling of approximately $1.3 billion worth of Grayscale Bitcoin Trust shares by bankrupt crypto lending firm Genesis to repay creditors.
If Bitcoin consolidates in the short term, attention may shift to altcoins. Altcoins that have recently broken above their respective resistance levels are likely to see a continuation of their rally.
To determine if Bitcoin can avoid a sell-off in the short term, let’s examine the charts of the top 5 cryptocurrencies that have the potential to extend their upward movement.
Bitcoin price analysis:
Bitcoin has encountered selling pressure near $52,000, but solid buying on dips is evident from the long tail on the candlestick. A shallow correction from the $52,000 resistance suggests that bulls are not rushing to book profits as they anticipate the continuation of the uptrend. If the price breaks and sustains above $52,000, the BTC/USDT pair could rally towards $60,000. However, the relative strength index (RSI) has been in the overbought territory for some time, indicating that the rally may be overheated in the near term. A drop below the 20-day exponential moving average ($47,809) would signal the start of a corrective phase, with potential support at the 50-day simple moving average ($44,441).
BNB price analysis:
BNB is in an uptrend, but it is facing resistance near $360. However, bulls have not given up ground to bears, as indicated by the upsloping 20-day exponential moving average ($328) and the RSI near the overbought territory. If buyers can close above $360, the BNB/USDT pair could continue its rally towards $400 and potentially $460. On the downside, a close below $348 may prompt short-term traders to book profits, leading to a correction towards the 20-day exponential moving average and potentially the 50-day simple moving average.
Kaspa price analysis:
Kaspa surged above the $0.15 resistance, signaling the resumption of its uptrend. The upsloping 20-day exponential moving average ($0.13) favors buyers, but the overbought levels on the RSI suggest that the rally may have been too fast. Support is likely to be found at $0.15, and a rebound from this level could lead to a rally towards $0.20. However, a sharp decline below $0.14 would indicate the end of the uptrend in the near term, with potential support at the 50-day simple moving average ($0.11).
VeChain price analysis:
VeChain gained momentum after breaking above the 50-day simple moving average ($0.03), indicating aggressive buying by bulls. The break above the $0.04 resistance on February 15 confirmed the start of the next leg of the uptrend. However, the long wick on the February 16 candlestick suggests that bears are trying to halt the upward movement near $0.05. If buyers can maintain their position, the uptrend may continue towards $0.07. On the downside, a break below $0.04 would indicate bearish pressure, potentially leading to a decline towards the moving averages.
Render price analysis:
Render broke above the $5.28 resistance, signaling the resumption of its uptrend. The bulls defended the breakout level on February 17, indicating their intention to turn it into support. If successful, the RNDR/USDT pair could rise towards the pattern target of $7. However, a break and close below $5 would indicate weakness and may result in a drop towards the 50-day simple moving average ($4.34).
Note: This article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.