Bitcoin Battles as Investors Weigh In: Bulls vs. Bears 🐂🐻

Is there a Higher Chance of Bitcoin Experiencing a Short-Term Correction, and Will Investors Buy the Dip to Rescue it?

Price analysis for various cryptocurrencies including BTC, ETH, BNB, SOL, XRP, ADA, AVAX, DOGE, LINK, and DOT on 2/21.

Bitcoin (BTC) has been locked in a fierce battle between bulls and bears as it trades sideways for the past few days. With the question of which side will come out on top lingering in the minds of crypto investors, it’s important to analyze the market trends and support levels to gain deeper insights.

Dwindling Hopes and Risk-off Sentiment 😱

The recent profit booking in the S&P 500 Index due to dwindling hopes of an early rate cut by the Federal Reserve has sparked a risk-off sentiment in the market. This increases the possibility of a pullback in Bitcoin and select altcoins.

Long-Term Bullish View Persists 🚀

Despite the short-term challenges, the long-term bullish view for Bitcoin remains intact. Investors see every dip as a buying opportunity, especially with Bitcoin’s upcoming halving in April, historically a bullish event.

Bitcoin Price Analysis ₿

Bitcoin is struggling to sustain above $52,000, indicating fierce resistance from the bears. If the price slips below $50,000, we may witness short-term traders booking profits and pushing the price to the 20-day exponential moving average ($48,842). On the flip side, a strong rebound from the 20-day EMA could signal positive sentiment, increasing the likelihood of a rally to $60,000. However, a break below the 20-day EMA could trigger a pullback to the 50-day simple moving average ($44,924).

Ether Price Analysis 🌪️

Ether (ETH) faced resistance at the psychological level of $3,000, leading to profit booking from short-term traders. In a strong uptrend, corrections typically last between one to three days. The crucial support level to watch is $2,717. If the price bounces back strongly from this level, it could indicate aggressive buying at dips and set the stage for a break above $3,000. On the other hand, a break below the 20-day EMA ($2,680) might lead to a deeper correction to the 50-day SMA ($2,467).

To provide a comprehensive analysis, let’s also take a closer look at the price movements of other top cryptocurrencies.

BNB:

BNB surged above the $367 resistance, signaling a resumption of the uptrend. With moving averages sloping upwards and the RSI in the overbought zone, bulls seem to be in control. If the price stays above $368, a momentum pickup is likely, potentially driving BNB towards $400. The first support levels to watch are the 20-day EMA ($336) and the 50-day SMA ($315).

Solana:

Solana’s rebound fizzled out, indicating a lack of demand at higher levels. The bears pulled the price below the neckline of the inverse head-and-shoulders pattern, signaling weakened bullish momentum. Keep an eye on the 50-day SMA as it may act as a support. However, a decline to $93 could be on the horizon if support fails. The first sign of strength would be a rise above the downtrend line, which could pave the way for a rally to $126.

XRP:

XRP closed above the downtrend line but struggled to break the $0.57 hurdle, suggesting selling pressure on relief rallies. If the bears succeed in pulling the price below the moving averages, XRP could dip towards the strong support at $0.46. On the other hand, a rebound from $0.46 would lead to a potential climb towards $0.57. A break and close above $0.57 would indicate the end of the corrective phase and a further rally towards $0.67.

Cardano:

Cardano turned down from $0.64, indicating profit booking by short-term traders. The price could potentially reach the 20-day EMA ($0.57), where buyers need to defend aggressively to maintain the upward trend. A rise above $0.64 might pave the way for further gains to $0.68 and beyond. However, a break below the 20-day EMA could weaken the bullish momentum, leading to consolidation between $0.46 and $0.64.

Avalanche:

Avalanche defended the 50-day SMA ($36) but faced resistance at the 20-day EMA ($38.22). With the 20-day EMA flattening out and the RSI near the midpoint, a range-bound action is expected in the near term. The support at $32 should be closely monitored, as a rebound from this level may stabilize the pair between $32 and $42. To gain the upper hand, bulls need to sustain the price above $42.

Dogecoin:

Dogecoin bounced off the 20-day EMA ($0.08) but struggled to overcome the barrier at $0.09. This negative sentiment suggests that bears are selling on rallies. If the price falls below the moving averages, DOGE might drop towards the uptrend line. The bulls must defend this level; otherwise, a descent to $0.07 could be on the horizon. Short-term optimism would be restored if the price rebounds and rises above $0.09, opening the doors for a rally between $0.10 and $0.11.

Chainlink bounced off the 20-day EMA ($18.81) but failed to sustain the recovery, slipping below the 20-day EMA. The next support level is at the breakout point of $17.32, where bulls and bears are likely to battle it out. If the price rebounds from this level, a rise towards the 20-day EMA and overhead resistance at $20.85 is possible. However, a break below $17.32 could signal a potential trend change in the near term.

Polkadot:

Polkadot’s recovery was halted near the 61.8% Fibonacci retracement level of $8.21, suggesting continued selling pressure on rallies. The pair has reached a critical level at the 50-day SMA ($7.18), and a break below may indicate weakening bullish momentum. The neckline and subsequent support at $6 will be closely watched. If the price rebounds from the neckline, Polkadot could remain range-bound between $6 and $8.21. Bulls regain control with a close above $8.21.

To delve deeper into the crypto market, stay informed about recent trends, and make informed decisions, check out these additional topic links:

  1. Michael Saylor to forever buy Bitcoin — ‘No reason to sell the winner’

The crypto market landscape is ever-changing. Keep track of these fascinating developments, and feel free to share this article with your friends and fellow crypto enthusiasts. Let’s keep the discussion going! ✨💬

Disclaimer: This analysis is based on historical price data and should not be considered as financial advice. Readers should do their own research before making any investment decisions.

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