The Bitcoin (BTC) rally in 2023 has been fueled by the hope that the United States Federal Reserve will reduce the rate of rate hikes as inflation has begun to decline. Some even expect rate cuts by the end of the year. That assumption got a jolt on Feb.3 when US employment data for January beat expectations and unemployment hit its lowest level since May 1969.
If the market does not react negatively to news that is considered bearish, it is a sign that sentiment has turned positive. Traders can then shift their focus to the next important economic data release. Trading company QCP Capital said in its latest market update that the Consumer Price Index Print on February 14 could move the market. They believe that the data risks are increasing.
The current crypto bear market appears to have driven institutional investors to the brink. According to a recent survey conducted by JPMorgan, 72% of institutional traders said that they have no plans to “trade crypto/digital coins” in 2023. Only 14% of respondents indicated their inclination to trade this year.
Will Bitcoin and altcoins witness profit orders in the near term? Let’s study the chart of the 10 best cryptocurrencies to find out.
BTC/USDT
Bitcoin bounced off the $22,800 support on February 1, indicating that bulls are buying dips to this level. Bulls pushed the price above $24,000 on February 2 but could not hold higher levels.
Rising moving averages and relative strength (RSI) in the overbought zone indicate that the path of least resistance is up. If the price rises from the current level or $22,800, the BTC/USDT pair could rise to $25,000. This level can be a daunting barrier.
The first sign of weakness will be a break and close below the 20-day exponential moving average ($22,279). This could lead to the stoppage of some short-term traders and the pair could drop to $21,480.
ETH/USDT
Buyers pushed Ether (ETH) above the $1,680 overhead resistance on February 2 but could not sustain the breakout. The price gave up all gains on the day and closed below $1,680.
Upsloping 20-day EMA ($1,571) and RSI in positive territory indicate that bulls are in control. They can again try to overcome the overhead barrier at $1,680 and start the journey to $2,000. The $1,800 level may offer some resistance but is likely to be crossed.
If the bears want to gain the upper hand, they need to sell aggressively and pull the price below the 20-day EMA. If it can be pulled, the ETH/USDT pair can go down to $1,500 and if this support is cracked, the eventual pullback can reach $1,352.
BNB/USDT
BNB (BNB) traded tight between the 20-day EMA ($306) and the overhead resistance at $318 resolved up on February 2.
Although the bears sold the rally on February 2, a positive sign is that the buyers did not allow the price to retreat below the $318 breakout level. This indicates that the bulls are trying to turn the $318 level into support. If they can pull it off, the BNB/USDT pair could skyrocket to $360 as there are no major barriers between them.
If the bears want to stop the rise, they need to pull the price below the 20-day EMA. The pair could then drop to the 50-day simple moving average ($276).
XRP/USDT
XRP (XRP) once again rejected from the $0.42 resistance on February 2, indicating that the bear is trying to protect this level.
The price is increasing between the 20-day EMA ($0.40) and $0.42. This suggests a breakout may be just around the corner. A rising 20-day EMA and RSI in positive territory indicate that bulls have the upper hand. This increases the probability of a break above $0.42. If that happens, the XRP/USDT pair could go up to $0.51.
Contrary to this assumption, if the price declines and breaks below the 20-day EMA, the decline can exceed the 50-day SMA ($0.37).
ADA/USDT
The bears’ attempt to sink Cardano (ADA) below the 20-day EMA ($0.37) failed on February 1.
A negative divergence in the RSI indicates weaker momentum but the upsloping 20-day EMA indicates that buyers have an edge. If the price rises from the current level, the bulls will again try to catapult the ADA / USDT pair to the overhead resistance at $0.44.
On the contrary, if the price falls and falls below the 20-day EMA, it will signal that the trader can make a profit. That could open the door to a potential drop to the 50-day SMA ($0.31).
DOGE/USDT
The long tail on Dogecoin (DOGE) February 1 candlestick shows that aggressive bulls bought a dip to the 20-day EMA ($0.08). However, buyers failed to build on this strength and broke the barrier at $0.10.
The DOGE/USDT pair is stuck between the 20-day EMA and $0.10. A gradually rising 20-day EMA and an RSI in positive territory indicate that buyers have a slight edge. If the price once again rebounds from the 20-day EMA, the bulls will try to overcome the resistance at $0.10. If it does, the pair could rise to $0.11.
On the other hand, if the price falls below the 20-day EMA, the pair may drop to the 50-day SMA ($0.08). This is an important level for bulls to defend because if it cracks, the pair can retry $0.07.
MATIC/USDT
Polygon (MATIC) turned from the breakout level of $1.05 on Feb.1 and reached above $1.25 on February 2. The long axis on the candlestick of the day suggests that short-term traders may have booked profits at a higher level.
A positive sign is that the bulls are not giving in to the bears and are trying to push the price towards the target level at $1.30. This level can again act as a strong barrier but if buyers bulldoze the way through, the MATIC/USDT pair can reach $1.70.
Alternatively, if the price drops significantly from the current level, the MATIC/USDT pair may drop to $1.05. This is an important level to watch out for as a bounce could keep the pair between $1.05 and $1.30 for a few days.
related: Bitcoin’s big month: Are US institutions ahead of Asian retail traders?
LTC/USDT
Litecoin (LTC) continued to march north and skyrocketed above the psychological level of $100 on February 1. This rise can tempt short-term traders to book profits.
The LTC/USDT pair may enter a minor correction but bulls tend to buy down to the 20-day EMA ($90). If the price rises from the current level or rebounds the 20-day EMA, the bulls will try to extend the upward move to $107.
This positive view may be invalidated in the near term if the price breaks down and falls below the 20-day EMA. Such a move will indicate that the bull may be in a hurry to get out. The pair could then drop to $81 and later to $75.
DOT/USDT
Polkadot (DOT) bounced off the 20-day EMA ($6.21) on February 1 and broke above the overhead resistance of $6.84 on February 2. candle stick.
A positive sign is that the bull does not allow the price to return below the resistance line. This indicates that the trader is trying to turn this level into support. Buyers need to keep the price above $7 to control it. The DOT/USDT pair could then rise to $8 where it could face strong resistance from sellers.
If the bears want to regain control, they need to quickly sink the price below the 20-day EMA. The pair could then enter a corrective phase and drop to $5.50.
AVAX/USDT
Avalanche (AVAX) rose above the overhead resistance at $22 on February 2 but the long axis on the candlestick of the day shows that the bears are selling in the rally.
A rising moving average indicates that the bulls are in command but a negative divergence in the RSI indicates that momentum may be weakening. If the buyer does not give up much ground from the current level, the probability of a break above $22 increases. The AVAX/USDT pair may then try to rally towards $30.
For example, if the price falls below $20.50, the pair can reach the resistance line. Bears need to sink the pair below this support to tilt the advantage in their favor.
The views, thoughts and opinions expressed here are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.